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Abstract: 

Every state’s property tax collection system is different, and within each state, many counties have variations in their systems. This lack of uniformity imposes additional costs on the local units of government, which would benefit from a statewide standardization of practices that would enlarge the market for tax liens and, with adjustments, could deliver delinquent taxes more rapidly to the underlying units of government. This article discusses why tax liens and tax deed sales are so vital to state and local governments, the history of liens and deeds, various bidding processes, investor risks and benefits, and measures of efficiency and ways for states to optimize their delinquent tax collection systems.

Keywords: foreclosure, auction, bidding methods, collection period, redemption period, interest/penalty rate, efficiency metrics, cost savings/revenue recovery

Affiliations:  1: Loop Capital Markets Analytical Services Division; 2: Loop Capital Markets Analytical Services Division.