Annual Marshall County tax sale

In today’s edition of the Times-Republican you will find the public notice of the Marshall County Tax Sale to be held Monday, June 20. Iowa Code section 446.7 requires the Marshall County Treasurer’s Office to conduct an annual tax sale to collect unpaid property taxes. The tax sale will recover this year’s uncollected property tax dollars so that your city, county, school districts and townships are able to meet their projected revenues in which they budgeted for.

During the tax sale, investors will pay the delinquent taxes on parcels of property in Marshall County where the owners did not pay this past year. The tax sale investors’ return is 2 percent interest on the taxes, added each month until the property owner pays.

The risk to the investor is if the property owner never pays back the tax sale investor for the delinquent taxes. After 21 months, the investor could take ownership of the property or the investor may pass on taking deed to the property and lose out completely on their investment.

It is very important to note, tax sale investors are not investing in property, they are investing in the taxes for the interest in return. It is rare, but it does occasionally happen when an individual is interested in participating in the tax sale for the hopes of getting the deed to a property. This usually is a situation where a property owner is interested in neighboring property to their own. Another important fact is, very few properties get to the point of an investor taking deed to property.

Most property taxes offered at the tax sale are sold. Many of the taxes in the notice today will be paid by the tax sale date. There will likely be 300-400 parcels totaling around $350,000 offered at this year’s sale. The taxes that are not sold at tax sale equals less than one-tenth of 1 percent of the $50 million the Marshall County Treasurer’s Offices is certified to collect during the fiscal year. Lastly, the amount that is currently offered for this coming sale is not outside of the trends we have seen in recent years.

If you are interested in being a tax sale investor, you may register in the Marshall County Treasurer’s Office by June 15. If you have any other tax sale or property tax questions, contact my office at 641-754-6366.

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Jarret P. Heil is the Marshall County treasurer.