Tax Certificate Process In Hillsborough County

A tax certificate is an interest-bearing lien against real estate property for unpaid real estate taxes and non-ad valorem assessments. They are a first lien against property and supersede governmental liens.

Certain risks are involved when purchasing tax certificates. The Tax Collector assumes no liability for the purchase of any tax certificate and does not guarantee the value or condition of the property on which they are issued.

Holding a tax certificate for a property does not convey property rights nor does it entitle the certificate holder to enter the property.

On or before June 1st, the Tax Collector’s office conducts an annual Tax Certificate Sale to allow third parties an opportunity to purchase tax certificates. When a tax certificate is purchased, the certificate buyer pays the Tax Collector the certificate face amount, which includes the following: the unpaid real estate tax from the previous year, 3% delinquency interest on the unpaid real estate tax from the previous year, 5% Tax Collector’s commission (this is against the prior year unpaid tax and 3% delinquency interest), newspaper advertising charge, and other sale costs.

Any tax certificates that were offered for sale during the annual tax certificate sale but not purchased by a third party are issued to the county as county held tax certificates and will become available for purchase at a date to be determined by the Tax Collector.

Upon redemption of delinquent taxes, accrued interest, fees and sale costs, the Tax Collector’s office then reimburses the tax certificate holder/investor the certificate face plus any accrued certificate interest.

If the property owner fails to pay delinquent taxes within two (2) years from the date of delinquency, the tax certificate holder/ investor may file a tax deed application. A tax deed application may result in a Tax Deed Foreclosure so the tax certificate holder may recoup their monies due.

The life of a tax certificate is 7 years. If no action is taken by the tax certificate holder during the 7-year period, and the taxes remain unpaid, the tax certificate is cancelled due to the Statute of Limitation, which will result in the loss of the certificate holder’s investment. In the event of a bankruptcy filing, the life of a tax certificate may be extended.