Delinquent Real Estate Taxes

Pursuant to KRS134.480, third parties (any person) may purchase tax payers' delinquent tax bills. This purchase can occur at anytime each year after the "Tax Sale" at the County Clerk's office.

The sale for 2016 Real Estate Tax bills and Oil Bills and 2015 Unmined Coal and Oil bills will take place on September 19th, 2017 at 10am.

To view the 2016 Real Estate Tax Bills and Oil Bills and 2015 Unmined Coal and Oil Tax bills please link below: Will be available at later date.

http://webster.clerkinfo.net/wp-content/uploads/2016/07/Webster-taxads-07082016.pdf

Registration Process for Third Party Purchasers

All third party purchasers who meet any of the following conditions must register with the Department of Revenue before being allowed to participate in the tax sale:

  • Plans to buy more than 5 certificates of delinquency statewide;
  • Plans to buy more than 3 certificates of delinquency in any county; or
  • Plans to invest more than $10,000 statewide in any calendar year.

To obtain information regarding registering with the Department of Revenue, please visit http://revenue.ky.gov/Property+Tax/

You will need Form #62A370A

The deadline for a third party to register to purchase tax bills at the Webster County tax sale is September 11th, 2017.

Each third party purchaser must provide the following information at the time of registration:

  • The purchaser's name, physical address, mailing address and telephone number;
  • The purchaser's State registration number received from the Department of Revenue;
  • A list of priority certificates of delinquency the purchaser intesnds to acquire (if any);
  • A list of the current certificates of delinquency the purchaser intends to acquire (if any); and
  • All registration fees and deposits required by the county clerk.

Print out the Third Party Delinquent Tax Registration Form      

Priority Certificates of Delinquency

The list of priority certificates of delinquency is to be clearly marked as such and it needs to include the following information:

  • The current year's tax bill number;
  • The name on the tax bill;
  • The amount due on the certificate of delinquency;
  • The prior year certificate of delinquency's bill number and tax year;
  • The book and page number where the prior year certificate of delinquency is filed, if applicable;
  • Upon request of the county clerk, a copy of the prior year certificate of delinquency.

A deposit of 100% of the value of each priority certificate of delinquency must accompany the list.  Please DO NOT send in recording fees with deposit.

Definition of a priority certificate - the purchaser holding the prior year claim for the most recent year is entitled to purchase the current year's certificate of delinquency for the same property.

Current Year Certificates of Delinquency

The list of current year certificates of delinquency shall be prepared by the third party purchasers and shall include the following information:

  • The tax bill number;
  • The taxpayer name;
  • The amount due on each certificate of delinquency; and
  • The following sworn statement:  "I hereby certify that I am not participating in this sale in conjunction with any related person or related entity to obtain any advantage over other potential purchasers at the sale."

A deposit of 25% is required for current year certificates of delinquency.  Pleae DO NOT send in recording fees with deposit.

Registration Fees

In addition to the required deposits, each third party purchaser must pay a registration fee.  A fee of $5.00 for each certificate of delinquency included on the purchaser's priority list and $10.00 for each certificate of delinquency included on the purchaser's current year list must be paid at the time of registration.  The total combined registration fee shall not exceed $250.00.  The registration fee is NOT refundable.

Procedures for the Delinquent Property Tax Sale

  • All third party purchasers will need to sign a registration sheet for the day of the sale.
  • Priority Certificates of Delinquency will be sold first.
  • A random drawing will be conducted to determine which third party will go first.
  • The certificates of delinquency will be sold in lots of 5 unless the county clerk decides differently the day of the sale, based on the number of available certificates for sale.

Purchasers are eligible to select only those certificates of delinquency included on their list of current year certificates of delinquency that have previously been submitted to the county clerk.

Bankruptcy Issues

*******BUYER BEWARE*******

Third party purchasers SHOULD do their own research before purchasing certificates of delinquency at a tax sale.  The county clerk is not aware of all Bankruptcy Issues.  Unless it is proven to be a clerical error on behalf of the County Clerk's office, refunds will NOT be granted.

Recording Fees

Assignment, recording and indexing fee:
$27.00 and $1.00 Postage Fee

If the third party requests a certified copy of the delinquency the fee is $5.00 for each certificate.
Release fee is $13.00, collected at the time of the release.