Pima County’s annual property tax lien
February 23, 2009
Pima County’s annual property tax lien sale starts Feb. 25 and with the economy the way it is, Treasurer Beth Ford says she is curious to see just how low lien buyers are willing to go.
With the federal funds rate bumping along at near zero percent interest, Ford says it will be interesting to see how banks and other investors in tax liens react.
The auctioning for liens starts at 16 percent, then investors bid down with the bidder offering the lowest rate winning. In past years, typical interest rates have been in the 5 percent to 7 percent range but Ford says they might be lower this year.
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This year there are 13,493 parcels included in the tax lien sale. While that is up about 8 percent from last year’s 12,516 properties, Ford says it still only represents a small fraction of the more than 400,000 parcels in the county, which increased by just under 10 percent in the intervening year.
Of the properties that have their tax liens up for sale, between 4,000 and 6,000 will actually get sold.
Ford says typically up to 200 prospective buyers of tax liens show up for the sale when it starts in the Board of Supervisors hearing room in the County Administration Building, 130 W. Congress St. But, she says, but when the bidding starts going, fewer than 100 actively participate.
And, unlike some other Arizona counties, Ford says her office is sticking with a live in-person auction, rather than going to an online system.
“We hear from our tax lien holders that they prefer the live auction,” she said, adding she also thinks it’s more fair to those involved.
Most every state has a mechanism for dealing with properties whose owners are delinquent on taxes. In Arizona it’s the annual tax lien sale. Every county conducts a sale.
From the counties’ point of view, the goal is to get the taxes they’re owed. So, they publish this list of properties, which includes the description from the County Assessor’s tax rolls, the owners, and the amounts of the taxes owed, including interest.
Ford says Pima County collects about $1 billion a year from property taxes and the tax liens that are up for sale represent about $20 million worth. In the end, the tax lien sale brings in about $4 million to the county.
For people who might have seen a TV infomercial, Ford suggests you might still want to come watch what happens before jumping into the fray. And remember, investors are only buying a lien certificate, not the actual property.
There may be certain extenuating circumstances that would make a lien less appealing to an investor.
Once a lien is sold, law prohibits the start of foreclosure on the lien for another three years.
Finally, for anyone who does go to the auction, Ford says to be prepared. Properties are auctioned off in an average of 20 seconds each.
Liens in Daily Territorial
A listing of all 13,493 parcels in Pima County with tax liens going up for auction will be included in The Daily Territorial on Wednesday (Feb. 11). Regular subscribers to The Daily Territorial will receive the listing as part of their normal subscription. Individual copies are for sale at $10 each at Territorial Newspapers, 3280 E. Hemisphere Loop (on the northeast corner of Valencia Road). Phone: (520) 294-1200