Lien / Certificate Sale

Navigate: Tax > Tax Sale > Lien / Certificate Sale

Description

A tax sale is the auctioned sale of a delinquent property. Typically, a property sale is advertised for a certain length of time. Then the sale goes to an auction. A buyer bids on the tax amount plus the amount of interest during the sale. When the bid is awarded, the buyer pays all delinquent taxes plus assorted fees or costs and interest, and receives a certificate stating they hold the lien against that year's taxes. When the property owner pays (redeems) the delinquent tax, the buyer recovers the money they paid plus the interest amount that they bid.

The Aumentum Tax Sale module allows you to set up and maintain buyers. You can also maintain the settings for Tax Sales in your jurisdiction.

Application Settings

Tax Sale

Tax Sale Application Settings are configured through the Delinquent > Tax Sale > Tax Sale Settings task. However, they can also be configured through the Configuration > Application Settings > Maintain Application Settings tax. Select the Tax Sale module.

Prerequisite Setup

Tax Sale Calendar Setup - Set up the Tax Sale Calendar in Configuration > Functional Calendar.

Payment Terms Rule Setup - Set up the payment term rules for penalty, interest, and discount charges.

Note: See Jurisdiction Specific Information about defining Bill Application Rules on the Set Up Payment Terms Rule Details screen for this setup when the tax bill is the most recent bill in the Tax Sale Agency.
AR Payment Rule Group Setup - Create a Payment Rule Group using the Late Payment Rules you've created for Tax Sale.

Cashiering Flag Payment Rule Setup - Set up the Payment Rules for the Tax Sale Participation Flag. The Tax Sale Participation Flag is set up using the Tax Sale Settings task.
AR Penalty/Interest Flag Rules - Optionally, set up Accounts Receivable Penalty and Interest Flag rules to stop penalty and interest from calculating on Tax Bills with the Tax Sale flag.
AR Application Setting - Optionally, set the Accounts Receivable application setting Include overbid in interest calculation for Certificate Refund to true to include overbid amounts in interest calculation for a certificate refund.

Reports

Tax Sale Reports - Print a variety of reports for Tax Sale information.

Tax Sale Setup

Tax Sale Settings - Configure the various settings for the Tax Sale module.
Tax Deed Settings - Configure the various settings and fees for Tax Deed processing.

Tax Sale Flag Rule Setup - Set up the rules for Tax Sale Flags.

Tax Sale Processes

Tax Sale Certificate Search - Search for Tax Sale Certificates to view.

Buyer Maintenance - Search for and maintain the buyer information for Tax Sale purchases.
Buyer Notices - Print notices for buyers associated with a Tax Sale.

Subsequent Tax Endorsement Notices - Print notices for Buyers or Groups for Subsequent Taxes.
Tax Sale Maintenance - Search for tax sales to maintain or create a new Tax Sale.

Tax Sale Flags - Search for tax sales to apply flags to. Apply a flag across all revenue objects of a tax sale. You can also remove a previously applied flag from the tax sale.

Tax Sale Notices - Print notices for properties associated with a Tax Sale.
Form DR513 - Print a Form DR513 for selected Tax Sale Items. Tax sale items not yet held by the Agency for Unbid Items or sold are not eligible for this process.

Certificate Transfer - Transfer one or more certificates from one buyer to another buyer.
Certificate Split - A Workflow for Certificate Split has been added. After a revenue object with a Tax Sale Certificate is split in Records > Revenue Object Maintenance, a CertificateSplit workflow is created. Access the Certificate Split workflow via the Workflow icon in the sidebar. Click your CertificateSplit workflow to advance to the Update Tax Sale Information Attached to Redescribed PINs screen, where you can update the parent and child Tax Sale information.

Setup: Set up security rights for the Workflow Default Queue via Configuration > System > Workflow Configuration. The Certificate Split process must be assigned an allocation rule. Go to Tax > Accounts Receivable > Allocation Setup > Allocation Rule Mappings. Select the Configuration to use for Certificate Split and verify Is Default is selected.

Supplemental Sale Maintenance - Create and maintain Supplemental Sales. A Supplemental Sale is conducted from Tax Sale Items that have been in Tax Sale but have not been sold.

Cancel or Void Tax Sale Items - Void or cancel tax sale items. Tax sale bills are only available for this process when the original Levy tax bill has been corrected. Tax sale bills cannot be voided/canceled when there are payments made against it.

Mass Pay Subsequent Taxes - Pay subsequent tax endorsements en masse for a large groups of items.

Maintain Certificate Numbers - Assign a Certificate Number starting Number and a Certificate Number Prefix to a Tax Sale.

Redemption Processing

Redemption Preparation - Search for redemption payments made through Cashiering to process.
Redemption Processing - Search for and select Redemption payments to distribute.

Export/Import

Tax Deed Applications - Export Tax Deed Application data for use with RealTDA.
Tax Sale Information - Export information for a Tax Sale.
Buyer Export - Export Buyer information for use with third-party software.
Buyer Import - Import Buyer information updated using third-party software. Buyers in the import file that don't exist in Aumentum are created during the Import process.

Tax Deed Applications/Endorsements Setup and Cashiering

Fees can be added to Endorsements and Endorsements created during Tax Deed Applications. The Functional Calendar includes an Event Type setup for Tax sale endorsement date. You must create a new calendar period for this date.

Accounts Receivable Payment Term Rules allow Interest to be charged on Endorsements. This same rule applies to both Agency and sold item endorsements. Cashiering includes a Collection Type of Endorsement.

When paid, the following occurs:

A charge is created for the Endorsement
The certificates and tax bills are paid
The Tax Sale information is updated as follows:
- If the certificate is being endorsed, then the amount is added to the certificate is the amount paid to endorse the certificate. The face amount includes taxes, interest, and fees.
- Interest is accrued from the date of sale to the date of endorsement. Any additional fees are also added. Interest is calculated on this amount at the endorsement interest rate started from the date of endorsement. If the county or agency buyer is endorsing, then the same process occurs, but no amounts due are displayed in the Bills to Pay panel and no endorsement fee charge is created.
- The county/agency buyer information is loaded in the Paid By panel

To set this up:

Go to Tax > Tax Sale > Tax Sale Settings > Maintain Tax Sale Settings and set up fees as needed.
Set up the Functional Calendar for Endorsement Date via Configuration > Localization > Functional Calendar > View Functional Calendars. Select the Tax Sale calendar.
Go to Tax > Accounts Receivable > Payment Terms Mapping and Setup > Payment Terms Rule Setup to create a rule to apply Interest to Endorsements.
- Create a Charge Type of Interest.
- Add a Bill Application Rule to Apply When Revenue Source is equal to Tax Sale.
- Add a Charge Application Rule to Apply When Charge Type is any of Fee, Miscellaneous.
- Add Application Dates and Rates as follows:
- - Apply On Endorsement Date
  - Calculate From Endorsement Date
  - Cycle of Monthly - Fixed Calendar Date
  - Value of Taxsale override

Tips

In Beaufort County, all properties whose taxes are not paid for the year by August 31 of the following year are advertised and sold for nonpayment of taxes. Before a property is sold for taxes, three tax notices are mailed. The property may also be physically levied. The redemption period for these properties is usually 12 months.

Tax Sale Information can be view from Information Center. Click on the Tax Sale link in the screen Header. Corrections to tax sale items can also be made through this Info Center task.

Prerequisites

Accounts Receivable/Cashiering

Tax Sale payment rules must be set up.
Tax Sale payment rule groups must be set tup.
Tax Sale Penalty and Interest Flag Rules must be set up.

Cashiering Module

Cashiering Flag Payment Rules must be set up.

Configuration Module

A Tax Sale Calendar must be set up.

User Maintenance and Security > User - User must have security clearance in order to edit the Records legal party information: Non-menu items for Records module.

To add a new legal party on Search for Buyer - Add View, Create and Modify rights to 'New Legal Party' task. Add 'Inherited rights'.
To edit existing legal parties on Maintain Buyer - Add View, Create and Modify rights to 'EditLegalParty' task. Add 'Inherited rights'.

Records

Legal Party Maintenance - The buyers are legal parties. You can set up the legal parties in Aumentum Records prior to doing Buyer Maintenance, or use the Add option of the search. The name, address, communication information, and role of buyer are all set up and maintained through Records functionality, which you can also access directly on the Maintain Buyer screen.

Note: The legal party must have a federal id number or social security number, set up in the Identification Number panel of Maintain Legal Party, prior to saving the buyer withholding information.

Dependencies

Withholding is required for the interest earnings of the buyer.
Withholding is reported to the IRS on a 1099 form.

Note: The prerequisite and dependency information is provided as a helpful guide but may not be inclusive of all items. Please check with your Support Representative for further advice if needed.