On the fourth Monday of each August, the Benton County Collector offers real estate with two or more years of delinquent state taxes at auction in accordance with Chapter 140 of the Revised Statutes of Missouri. This year’s sale will take place on August 26, the largest inventory in years.
“As of August 9, we had 658 delinquent properties to auction, but about 20 owners redeemed themselves (paid what they owed in back taxes and other costs),” said David Brodersen, Benton County Collector. “Last year, we had about 330 properties to auction, but by the date of the sale, we only sold 160 certificates because of owner redemptions. We had even less delinquencies the year before.”
The yearly tax sale encourages development of unused property and ensures that taxing districts receive as much of their expected revenue as possible so the funds can be distributed to the various taxing entities.
Brodersen said that this year the collector’s office is selling 2022 and 2023 delinquent properties. By statute, up to three years are allowed before auctioning a property for back taxes, but Benton County does it after two years. When a taxpayer fails to pay taxes by December 31, the collector is mandated to apply a penalty. If taxes become delinquent for another year, and the property is above $1,000 in value, then it is eligible for a tax sale and notice is put in the newspaper. The property owner is also notified by certified mail. When the owner signs for the certified mail, the collector’s office knows that the owner received the document. If certified mail is returned to the collector unclaimed or due to going to the wrong address, then a notice will be posted on the property in bright yellow informing the owner of the tax sale.
The minimum amount payable by a bidder for delinquent property is the total amount due for overdue taxes, interest and other charges. A property is sold to the highest bidder at the auction, who gets a Certificate of Purchase. When no one bids the minimum amount on an individual piece of real estate, then the collector will put it up for sale the following year (Missouri Statute 140.240), and possibly a third sale. The owner of the delinquent property has a year to redeem after the tax sale. Purchasers of properties at the auction may not go on the properties or do anything with them during that time.
If a property has been sold, but the original owner paid all due taxes, penalties and expenses during the year after the sale, then the person who bought the property at auction will get a full refund with interest.
Brodersen reported that if a person is the highest bidder for a property, and eventually gets to keep it, there is a lot of work to do to complete the sale. The purchaser must do a title search to find everyone who has an interest in the property and might be able to pay back taxes. Copies of letters must be given to the collector’s office.
Occasionally competitive bidding results in an excess of the taxes owed and even mortgages owed against the property. People or entities who are owners or lienholders that file claims with the court may have an opportunity to participate in the distribution of Surplus Funds.
In order to bid on a property at the back tax sale, a person must be at least 18 years old and a full-time resident of Missouri, or represent a Missouri-based organization. An interested bidder can submit a bidder registration form and can also register at the collector’s office on the day of the sale. If bidders are not Missouri residents, they need to appoint a resident of Benton County who can bid on their behalf. An agent will be responsible for completing the steps necessary to get a Collector’s Deed, which he or she can then quit-claim to the out-of-Missouri bidder. (https://taxsale.bentoncountycollector.com)
“Auctions used to be in the courthouse,” said Brodersen. “But during Covid, a lot of collectors in the state canceled them. However, Benton County took the auction outside to the courthouse steps.”
Brodersen said that there have been tears shed over the years by owners of delinquent properties. He related how one couple turned over their property to their son who did not pay taxes and ended up losing it.
This year, Brodersen will be accompanied on the courthouse steps by the county clerk who will record bids, the auctioneer, and staff members from the assessor’s office. The auction starts at 10:00 AM.
