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Tax Lien Sale Information
If property taxes on real estate are not paid, they will be sold at a tax lien sale, a public auction held each year, usually in November. This is the final step in the efforts to collect real estate taxes. At the auction, tax liens are offered for the amount of taxes due plus interest and fees. Since the tax lien sale is an open auction, participants may offer bids over and above the amount due, however, this overbid is not recoverable by the purchaser. Anyone, excepting city and county employees and their immediate families, can purchase tax liens. The City and County of Broomfield makes no assertions or guarantees concerning the properties for which the tax liens are being offered. As with any investment, there is a certain degree of risk involved in purchasing tax liens and potential buyers may wish to consult with a financial advisor before investing.



View lists of the properties that sold last year: 2014 Delinquent Tax List

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2014 Tax Lien Sale Information

DATE AND TIME:

The 2014 sale will be held Nov. 13, 2014 at 9:00a.m.   

LOCATION OF SALE:

City Council Chambers, located on the first floor at One DesCombes Drive.

ADVERTISEMENT OF SALE:

The list of taxes was advertised three consecutive weeks prior to the sale in the Broomfield Enterprise.  The dates will be October 16, October 23, and October 30, 2014.

REGISTRATION:

On the day of the sale, all bidders must register in the Treasurer's Office, indicating the name in which certificates are to be issued. We also require a W-9 form showing the social security number of the individual investor or the Employer Identification number of corporations or companies purchasing tax liens. Please try to arrive early enough to get registered before the sale begins.

THE BIDDING PROCESS:

You or your agent must be present to participate in the bidding process. Broomfield holds an open auction. Each buyer is issued a number. When the taxes you wish to purchase are auctioned, raise your number. If you wish to bid a premium (an amount over and above the tax amount), clearly call out the amount you are bidding. The investor offering the highest premium purchases the tax. Premium bids must be in one dollar increments for any taxes less than $1,000.00. Premium bids on taxes $1,000.00 and larger must be in five dollar increments. Please note that the premiums you pay will not be refunded to you at the time the taxes are redeemed.

WHAT YOU ARE PURCHASING:

You are only purchasing a property tax lien. You are not being granted any property rights. There is a three year redemption period for most properties sold at the tax lien sale and during that time, the property still belongs to the assessed owner. Most investors participate in the sale because the interest rates are much better than those offered in other investments. Very few property tax liens actually go to deed.

LIENS NOT SOLD AT THE SALE:

Any taxes not sold at the sale are held by the county and are normally available for purchase from the treasurer's office. These generally consist of properties of low value such as mineral interests, improvements only, and mobile homes.

RATE OF RETURN:

The interest rate on taxes purchased at the tax lien sale is nine percentage points above the discount rate paid to the Federal Reserve Bank on September 1st. The rate on your certificate will remain the same for as long as you hold that certificate. The rate of return for certificates sold in 2013 is 10%.

AFTER THE SALE:

You will receive a printout showing the account numbers and amounts for each tax lien you purchased. The certificates will be held in our office for safekeeping unless otherwise instructed. If the taxes in ensuing years become delinquent, you will be notified in July and given the opportunity to endorse the taxes to the certificates you hold. You will receive the same interest rate on subsequent taxes as on the original certificate. When tax liens are redeemed, a check will be forwarded to you for the amount of tax purchased plus interest accruing from the day of sale to the date of redemption. You will not be refunded any premiums. If the certificate is in your possession, you will be notified to return it to our office. Upon receipt of the certificate, you will receive a check. The redemption period is three years from the date of the original tax sale. You will receive a 1099 showing the amount of redemption interest paid to you. A copy is also sent to the IRS.

STATE STATUTES REGARDING TAX LIEN SALES:

Copies of the Colorado State Statutes are available at your local library or on the internet at: http://www.leg.state.co.us