County Makes More Than One Million Dollars From Annual Tax Sale
Annapolis, MD (June 7, 2006) - Anne Arundel County Executive Janet S. Owens announced the 2006 Annual Tax Sale brought in a total of $1,150,571.82 in unpaid taxes, interest and fees. The county will hold $8,659,216.62 as bid premium, which will be returned to investors either upon redemption or foreclosure. In all, the County auctioned tax liens on 800 individual properties and received $9,809,788.
A property is eligible for inclusion in tax sale if there are any unpaid bills totaling $100.00 or more owed to the county with a due date prior to January 1 of a given year.
These unpaid bills can include county, state and municipal real property taxes, special community benefit district assessment charges, trash collection charges, utility bills, front foot assessment bills, City of Annapolis unpaid utility bills, unpaid installment agreements, unpaid capital connection fees, non-compliance charges, unpaid health liens or unpaid multiple dwelling fee charges.
Pursuant to sections 14-808 and 14-809 of the Tax Property Article of the Annotated Code of Maryland, it is mandatory that the Collector of Taxes sell, at the time prescribed by local law, any property on which taxes are in arrears.
Per the Tax Property Article, Section 14-812, at least 30 days prior to the date a property is first advertised for tax sale in a newspaper, the Collector is required to mail a statement to the person who last appears as owner of the property on the Collector’s tax rolls. This tax sale notice contains the person’s name, the amount of taxes due and a statement that if the taxes are not paid, the property may be sold.
When the thirty-day period expires, the Collector must publish a listing of the properties once a week for four successive weeks in two newspapers published in the county. This year’s properties were advertised in The Capital Newspaper each Thursday in May and in the Maryland Gazette each Saturday in May. This advertisement included the date, time and place of the sale as well as a description of the property, name of the person who last appears on the tax rolls as owner, the assessed value of the property and the total tax sale amount due including all unpaid taxes, interest and relevant fees.
Unpaid real property taxes of any type constitute a lien against a property. When a tax lien is sold at tax sale, the county’s lien in passed to the purchaser. This lien entitles the purchaser the right to begin foreclosure proceedings after six months from the date of the sale so long as the property owner has not redeemed the property prior to that time. The lien purchaser is then entitled to 1.5% interest per month (18% per annum) on the sale amount paid. After six months from the date of sale, the lien purchaser is also eligible to charge legal fees relative to foreclosure proceedings (limited fees may be charged after 4 months pursuant to Section 14-843 of the Tax Property Article). If no foreclosure case has been filed and the property has not redeemed within two years from the date of sale, the lien is considered void.
The property owner may redeem their property at any time prior to the completion of the foreclosure process by paying the county all tax sale charges and interest along with any currently outstanding bills owed to the county. Redemption payments can only be made with cash, money orders or certified checks.