Tax Collector’s Internet tax sale site open for June 1 tax sale

BidOkaloosa.com, the auction website of Okaloosa County’s annual Internet Tax Certificate Sale, is officially open. Tax Collector Chris Hughes has announced that this year’s sale will be held online June 1.

Hughes encourages potential investors to log on to the site now to take full advantage of the Internet platform’s benefits which include demonstrations, procedural information, links to public records and the delinquent tax advertising list. Hughes says bidders can also pre-register and submit bids on the site before the actual event begins.

Tax certificates are a first lien on real estate. Investors purchase certificates by paying off the tax debt, which includes interest and other fees. The purchaser bids on an interest rate which determines the pay back of the investment. The sale is conducted in a “reverse auction” style. A parcel is auctioned off starting at 18 percent interest per annum (the maximum rate allowed by Florida law) and bid down in quarter-percent increments. The bidder who offers the lowest interest rate on the debt wins the certificate.

Investors place bids via their personal computers from the comfort and privacy of their homes or offices instead of congregating at a designated location with an auctioneer.

Hughes is credited with designing and implementing the nation’s first live Internet lien auction four years ago. The successful concept has been copied throughout the state and by other governing bodies across the country.

“The results of electronic tax sales are significant,” said Hughes. “The benefits include easier bidder access from anywhere in the world; increased participation; greater competition generating lower interest rates for delinquent property owner repayment; streamlined tax office operations; decreased manpower overtime; quicker collection and distribution of funds to services.”

In order to participate in the sale, bidders will receive a personal ID and password, be required to complete an IRS Form W-9, submit a security deposit and make certificate purchases through ACH (Automated Clearinghouse) Debit.

As prescribed by law, the certificates will be sold in sequential order, independent of every other tax certificate the day of the sale.

To protect the privacy of BidOkaloosa users, the site is safeguarded by the industry’s top firewalls, intrusion detection systems, virus protection software and system monitoring programs. In addition, Hughes has set up internal controls for transaction account auditing as well as controls to audit even Grant Street Group’s performance, the Pittsburgh, PA firm contracted to conduct the live auction.

The public libraries in Ft. Walton Beach, Crestview, Niceville, Destin and Mary Esther have agreed to provide Internet access to bidders.

The required published advertisement of delinquent parcels appeared in the Destin Log May 7, 14 and 21. Copies are available at all tax office locations. The list is also available at www.okaloosatax.com.

Delinquent taxpayers have until 5:00 p.m., Friday, May 30, to make payment on their account or a certificate will be issued June 1. Payment must be made by cash, cashier’s check, money order or by credit card. Hughes also reminds citizens that May 30 is the final day payments can be made via the website at www.okaloosatax.com.The Internet site will accept payments only until 5:00 p.m. The site will reject any payments received after that time.
 

Posted May 7, 2008