Revenue Code 370: Tax Sale Notice Requirements

When a property owner fails to pay property taxes, the local tax collector may sell the property at a public auction to recover the delinquent amount. This process is governed by state law, and the specific rules can vary significantly. A legal requirement of this procedure is for the tax collector to provide formal notice before any sale can occur, ensuring all relevant parties are informed and their rights are protected.

Required Recipients of the Notice

State laws specify two main categories of individuals and entities who must receive a formal notice of a tax sale. The first is the “last assessee” of the property, which is the last person or entity listed on the jurisdiction’s assessment roll for tax purposes. The notice must be sent to the last known mailing address for this party.

The second group entitled to receive notice includes all “parties of interest.” This is a broader category encompassing any person or entity with a legally recognized interest in the property that the sale would affect. Examples include mortgage lenders, banks with deeds of trust, or other lienholders. The legal definitions of these terms are determined by state law.

Mandatory Content of the Notice

A legally sufficient notice includes several pieces of information. It must state the date, time, and place of the proposed sale, or provide the website address and access information for an online auction. A legal description of the property being sold is also required to ensure there is no ambiguity about the parcel.

The notice will also include:

• The name of the last assessee of the property.
• The minimum acceptable bid.
• A statement regarding the right to redeem the property by paying the full delinquent amount and when that right will expire.
• Information for parties of interest on their right to file a claim for any excess proceeds from the sale.

Method of Providing Notice

The methods for delivering the notice are dictated by law. The tax collector must send the notice by certified mail to the last assessee at their last known address. This same requirement of delivery by certified mail often applies to all identified parties of interest. For instance, federal law requires that if the IRS has a lien on a property, it must be notified of a sale by registered or certified mail or personal service.

In addition to direct mail, the notice is often required to be published in a newspaper of general circulation within the county where the property is located. This serves to provide a broader public announcement of the sale.