Tax sales in Lowndes and Oktibbeha counties last week generated more than $2.5 million.
Both counties held sales on tax liens of delinquent properties on Aug. 29. The sales finished by around noon the next day.
In Lowndes County, the tax sale generated $1.47 million, according to Tax Assessor Greg Andrews. He said the sale had 198 buyers, and 1,758 parcels. Buyers spent an additional $80,000 on overbids on properties, he said.
Oktibbeha County Tax Collector Allen Morgan said his county’s sale generated $860,520 on delinquent taxes, with $93,120 in overbids. He said the sale had about 50 buyers and 1,023 properties.
Both sales generated close to the previous year, the Morgan noted that both those years brought in less than 2014.
“It’s pretty in line with last year,” he said. “The year before that was probably a few hundred thousand dollars more, though.”
Taxes will next be distributed to appropriate entities, such as cities, counties and school districts.
Andrews previously told The Dispatch that it’s possible, but uncommon, for someone to assume ownership of a property after buying the tax liens.
After a lien is bought, an owner has up to two years to redeem the property by paying the delinquent taxes plus penalties. If the owner does redeem the property, then the county returns the buyer’s money, plus 1.5 percent — 18 percent a year — monthly interest it accrues for up to two years.
Overbids are how much money buyers spend to purchase delinquent taxes on property. Andrews said buyers who bid are typically gambling that the property owner will not redeem the property and that they will be able to assume ownership.
For example, he said a $1,500 property might generate $45 per month in interest. If someone overbids by $200 on the property and the owner redeems the taxes on Oct. 1, they’ve lost money, he said.
Morgan said overbid money is sent to a county’s general fund.
Alex Holloway was formerly a reporter with The Dispatch.
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