Delinquent taxes on Lowndes and Oktibbeha County properties will soon be up for purchase.
Both counties will hold sales on the tax liens of delinquent properties on Aug. 29. In Lowndes County, the sale will be at the Trotter Convention Center in downtown Columbus. In Oktibbeha County, it will be held in the courthouse in Starkville.
The tax sale, according to Lowndes County Tax Assessor Greg Andrews, allows individuals to invest in delinquent taxes on properties.
“People have between December and Aug. 26 to pay their taxes,” Andrews said. “Of about 33,000 parcels in the county, about 2,200 will be in the sale. We’ll have about $2 million property taxes up for sale.”
Andrews said about 180 buyers are expected to participate in Lowndes County.
Oktibbeha County Tax Collector Allen Morgan said the county should have between $800,000 and $900,000 in taxes up for sale. He said the sale may draw 100-150 people.
Andrews said taxes are distributed to the appropriate entities — the city, county, schools and so on — after they’re collected from the sale.
Both Andrews and Morgan said most, if not all, of the property taxes up for sale are purchased. Those that aren’t purchased could be returned to the state, or tied up in bankruptcy.
Andrews said it’s possible, but uncommon, for someone to assume ownership of a property after buying the taxes.
After the taxes are bought, an owner has up to two years to redeem the property by paying the delinquent taxes. 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.
“Ninety-nine percent invest for interest, not ownership,” Andrews said.
However, if the two-year period passes without the property owner redeeming the property, the buyer can assume ownership by getting a tax deed from the chancery clerk’s office.
While ownership is possible, Andrews said it’s a slow process.
“There’s a perception from the general public that you can go in there and pay someone’s taxes and it’s yours,” he said. “That’s not the case. It takes that two-year redemption period.”
Alex Holloway was formerly a reporter with The Dispatch.
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