(a) On the day and time designated for a tax lien auction, the tax collecting official shall proceed to auction all tax liens described in the tax lien auction list compiled as provided in Section 40-10-183, except those for which the taxes, penalties, interest, fees, and costs have been paid. Any tax lien unsold after a tax lien auction shall continue pursuant to Section 40-1-3 for future auction or sale as provided in this article. Interest shall continue to accrue on unsold tax liens at the rate imposed on delinquent real property taxes.
(b)(1) A tax lien shall be sold at auction pursuant to this article to the person who: (i) pays all taxes due, including unpaid taxes for previous years, interest, penalties, fees, and costs due on the property; (ii) pays an administrative fee of forty-five dollars ($45), effective upon the preparation of the tax lien auction list, plus the amount to be paid to the holder of a tax lien certificate who has not exercised his or her first right to purchase as provided in Section 40-10-191; and (iii) bids the lowest interest rate on the amount required to be paid to redeem the property from the sale.
(2) The beginning interest rate bid shall not exceed a rate of 12 percent and additional bids may be made at a rate less than the immediately preceding bid.
(3) If an in-person auction ends in a tie and the winner cannot be determined, the tax collecting official shall draw lots to determine the winning bidder. If an online auction ends in a tie and the winner cannot be determined, the tie shall be resolved by a random number generator.
(c) The sale of a tax lien does not extinguish any deed restriction, deed covenant, or easement on or appurtenant to the parcel. A tax lien offered for auction or sale shall be identified by a uniform parcel number and a legal description.
History: (Acts 1995, No. 95-408, p. 864, §6; Act 2018-577, §1; Act 2024-324, §1.)