Pursuant to the Local Government Act, a tax sale is conducted annually by the Collector, on the last Monday of September, where properties on which taxes are delinquent are offered for sale by public auction. Notice of the tax sale is published prior to the tax sale, advising of the time and place of the sale, and the description and street address, if any, of the properties subject to sale.
The Collector is authorized to receive from the proceeds of a tax sale the following amounts for the use of the local government, which is the upset price and the lowest amount for which the parcel may be sold:
- the amount of delinquent taxes, taxes in arrear, and interest to the first day of the tax sale for which the parcel of land and the improvements are liable for sale;
- the taxes, including penalties incurred, for the current year on the land and improvements;
- 5% of the amounts under paragraphs (a) and (b);
- the fees prescribed under the Land Title Act.
The highest bidder above the upset price or, if there is no bid above the upset price, the bidder at the upset price, is declared the purchaser.
If there is no bid, or no bid equal to the upset price, the local government is declared the purchaser. If the local government has been declared the purchaser of a parcel, the Collector may offer the parcel for sale again later at the tax sale under the same conditions.
If a purchaser fails to immediately pay the Collector the amount of the purchase price, the parcel will again be offered for sale. Within one year from the day of the tax sale, a parcel of property sold may be redeemed by:
- an owner or registered owner in fee simple of the parcel;
- an owner of a registered charge against the parcel; or
- another person on behalf of a person referred to in paragraph (a) or (b).
A redemption is made by paying or tendering to the Collector for the use and benefit of the purchaser the total of the following amounts:
- the upset price of the parcel at the time of the tax sale;
- all costs of which the Collector has had notice that have been incurred by the purchaser in maintenance of the real property and in prevention of waste;
- taxes advanced by the purchaser;
- interest to the date of redemption on any amount in excess of the upset price and on the total amount expended by the purchaser under paragraphs (a) to (c) during the period for redemption, at the rate prescribed under the Taxation (Rural Area) Act.
On redemption of a parcel, the purchaser is entitled to receive from the local government all amounts paid by the purchaser, together with interest to the date of redemption at the rate prescribed in the Taxation (Rural Area) Act. For further information please view the Annual Tax Sale Information.