The Tax Lien Public Auction is usually held around the first part of November. Buyers pay the total advertised price consisting of tax, interest to the date of public auction and an advertising fee. They also pay a $4.00 certificate fee and an $8.00 auction fee plus any premium bid. The person paying the highest amount is issued a Certificate of Purchase. This is a negotiable document representing a lien on the property. It is valid for 15 years. The buyer does not recover the premium paid over the starting amount. The certificate earns interest at the rate stated on the certificate with portions of calendar months considered as whole months.
A buyer list showing certificate numbers, parcel numbers and total paid will be provided to the taxpayer. Buyers are responsible for keeping adequate records. The Treasury Division is responsible for the public auction of the tax lien, immediate notification to buyers of redemptions and payment upon surrender of the redeemed certificate. (We will hold your certificate if you wish and provide copies to you.)
The redemption amount paid is the certificate amount (tax, interest, advertising, and fees), plus redemption interest. The annual redemption interest rate for each year’s public auction is established by adding 9% to the September 1st Federal Reserve discount rate. One twelfth of this rate accrues for each month or portion thereof. The September 1, 2016 discount rate was 1%. The redemption rate for certificates sold in November of 2016 will be 10% or 0.833% per month. Upon redemption, we notify the buyer to return their certificate for payment of the certificate face value plus accrued interest. If we are holding your certificate, a check will be mailed immediately.
Buyers may after July 1st pay the subsequent year’s unpaid taxes for endorsement onto their certificates. These payments earn the same rate of interest as does the original public auction.
If the property has not been redeemed after three years from the date of public auction, the buyer can apply for and receive a Treasurer’s Deed to the property. Buyers return their certificates to us and deposit expense money. After a title search, advertising, and notification of all interested parties, a Treasurer’s Tax Deed is issued if there has been no redemption.
Erroneous sales are paid interest at the rate of 2% above the discount rate rounded to the nearest full percent but no lower than 8%. The lower redemption interest rate is applicable to discoveries made after May 23, 1988 and can be applied to the entire certificate regardless of when the certificate was purchased.
If you wish to participate in our public auction, visit our auction website at www.denver.coloradotaxsale.com for the rules and any details. The list of parcels for sale will be available at the auction website about two weeks before auction starts.
The subject of Tax Lien Public Auctions, Deeds, Redemptions, etc., which are administered by County Treasurers, is covered by Colorado Revised Statutes, Title 39, Articles 11, and 12. Any questions should be referred to the Taxpayer Service Unit at (720) 913-9300.