What is the purpose of a Tax Sale?

The purpose of a tax sale is fundamentally about recovering unpaid taxes. When property owners fail to pay their property taxes, municipalities have a legal mechanism to collect those debts. This is executed through a tax sale, where the delinquent property is auctioned off. During this process, buyers can bid on the outstanding tax obligation, often acquiring a lien on the property, which gives them the right to collect the owed taxes plus interest. If the property owner does not redeem their property by paying the owed amounts, the buyer could potentially take ownership of the property after a specified period.

This process helps ensure that local governments maintain the revenue necessary to provide services and fund projects, as property taxes are a primary source of municipal income. It serves as a means to incentivize property owners to pay their taxes on time while providing a pathway for local governments to recoup lost revenue due to unpaid taxes.