White County land auction nets $247,941
Source: The Daily Citizen
July 30, 2007
LITTLE ROCK — Commissioner of State Lands Mark Wilcox conducted an auction of White County tax-delinquent properties recently at the Hampton Inn in Searcy. A total of 26 interested bidders attended the sale which is held annually by the state to dispose of land on which the taxes have been past due for over four years. The State Land Office reported the sale of 13 parcels collecting $247,941.45 in revenue for White County and state government.
The Land Commissioner’s office conducts one tax-delinquent land sale per county each year. Parcels offered for auction have not been current on real estate taxes for four years. “A small percentage of certified parcels make it to public auction because a majority of the properties certified to our office are redeemed, which means that the back taxes are paid by the original owner,” according to Commissioner Wilcox. While redemption of property is the preferred method of disposing of tax-delinquent lands, Wilcox notes the important role of land sales in returning inactive parcels to the tax rolls.
Tax delinquent property may be purchased at auction by a registered bidder for no less than a minimum bid which represents the assessed value of the property, plus all taxes, penalties, and interest due. Registration to bid at land sales is free. Upon sale of tax-delinquent property, the Commissioner issues a limited warranty deed to the highest bidder. Wilcox points out that the state offers a 30-day grace period for payment after the sale. If the original owner pays the back taxes and penalties during the grace period, the purchaser is refunded the full purchase price paid.
Wilcox’s office returns delinquent tax and interest collected, whether through redemption or sale, to the county taxing unit just as if the money had been originally collected there. “In 2006, we returned over $11 million to school districts and county governments. During this era of budget cuts, local governments desperately need that revenue,” he said. The State Land Office retains a small penalty and fee from delinquent taxes to fund office operations.
Interested parties may contact the State Land Office by phone at (501) 324-9422, or by email at land@cosl.org to subscribe to the Catalog of Tax Delinquent Lands, a free quarterly publication listing all parcels to be held for sale at auction.
