How does bidding work?

Unlike most other auctions, the annual sale is a strange auction because bids are not made in cash amounts and taxes are not sold to the highest bidder. The bidding process is designed to ensure that taxpayer/owners will be able to redeem their taxes at the lowest possible interest rate. When a taxpayer redeems their taxes from a tax buyer, they pay the amount paid by the tax buyer at the sale, plus interest. At the annual tax sale, it is on this rate of interest that tax buyers bid. The person who bids the lowest rate of interest (between 0% and 18%) will win a bid. The amount of money to be paid for the lien on taxes is not in question at the annual tax sale: the tax buyer must always pay the entirety of the delinquent taxes, along with costs and interest.

Show All Answers

1. When does the annual tax sale take place?
2. Why does Rock Island County have an annual tax sale?
3. How is the Annual Tax Sale initiated?
4. Who runs the tax sale?
5. What is a tax buyer?
6. How long may a property owner wait to pay to avoid sale?
7. Do delinquent taxpayers have to pay costs of the certified delinquent notice or of publication?
8. After the list has been published, where can it be viewed?
9. How does bidding work?
10. Where and when can tax buyers register?
11. What are the registration requirements?
12. Can a tax buyer register multiple entities which can each bid at the tax sale?
13. Are there people who are prohibited from bidding in the tax sale?
14. Does the tax buyer have to buy subsequent delinquent taxes, that is taxes which become delinquent after the sale?
15. What does the tax buyer who wins a bid on taxes have to pay?
16. What additional costs are associated with an annual sale purchase?
17. What happens when delinquent taxes on a parcel are offered and not sold?