Sale Type: | Tax Lien and Tax Deed |
Interest Rate: | 10% APR |
Bid Method: | Highest Bidder |
2 Years | |
Sale Date(s): | Year Round |
State Statute(s): | |
Yes | |
State Website: |
Missouri State Overview
In Missouri, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax lien sales.
Tax Sale Type: Tax Lien CertificateA legal document issued by a government authority when a property owner fails to pay property taxes, granting the certificate holder a lien on the property. (Sec. 140.290).
Contact: Tax Collector. (Sec. 140.010).
Interest Rate and/or Penalty Rate: 10% per annum (8% on subsequent taxesAdditional property taxes that become due after the initial tax lien certificate is purchased. Lien holders may need to pay these to protect their investment.). (Sec. 140.340).
Bid Procedure: Premium bid / highest bid. (Sec. 140.190 Sec. 140.250).
Redemption Period: One (1) year. (Sec. 140.330).
Law: Missouri Revised Statutes, Chapter 140, “Collection of Delinquent TaxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property. Generally,” and Chapter 141, “Delinquent Taxes — First Class Counties and St. Louis City.”
Charter Counties. According to (Sec. 18 (a)) of the Missouri Constitution any ‘county having more than 85,000 inhabitants, according to the census of the United States, may frame and adopt and amend a charter for its own government'.
In addition, counties ‘which adopt or which have adopted a charter or constitutional form of government shall be a separate class of counties outside of the classification system established under section 8 of this article'.
In conclusion, any county with a population of 85,000 or more may adopt a different process for the collection of delinquent property taxes. Therefore, prior to purchase, contact county officials for the specifics on how delinquent property taxes are handled in that specific county.
Sale to Non-Residents According to (Sec. 140.190) no ‘bid shall be received from any person not a resident of the state of Missouri until such person shall file with said collector an agreement in writing consenting to the jurisdiction of the circuit court of the county in which such sale shall be made, and also filing with such collector an appointment of some citizen of said county as agent of said purchaser, and consenting that service of process on such agent shall give such court jurisdiction to try and determine any suit growing out of or connected with such sale for taxes'.
Subsequent Taxes. According to (Sec. 140.440) the purchaser of the tax lien certificate must pay all subsequent taxes ‘that have accrued thereon since the issuance of said certificate' before ‘being entitled to apply for deed'.
Furthermore, ‘any purchaser that shall suffer a subsequent tax to become delinquent, such first purchaser shall forfeit all liens on such lands so purchased.'
A purchaser that permits ‘a subsequent certificate to issue on the same property' will receive a notice instructing the investor to ‘surrender said certificate' to the county tax collector. At that point the investor will receive what he or she paid to purchase ‘shall be paid without interest to such holder of the certificate'.
Applying for Tax Deed. According to (Sec. 140.410) the purchaser must apply for a tax deed ‘within two years from the date of said sale' of the tax lien certificate. Failure by the purchaser to apply for a tax deed within the time specified in Sec. 140.410 ‘the amount due such purchaser shall cease to be a lien on said lands so purchased so purchased as herein provided'.