By AVA FRICKE
The Ramspondents
Larimer County will host its annual Tax Lien Sale on Nov. 20. This event is a public auction held by the county government to sell the legal claims to properties with unpaid property taxes.
“All 64 County Treasurers in the State of Colorado are required by state statutes to hold an annual tax lien sale”, said Irene Josey, the Larimer County Treasurer and Public Trustee. “The reason for the tax lien sale is to make the taxing authorities (entities providing services to the community, such as schools, fire districts etc, whose budgets are supported by property taxes), can be made whole by the end of the calendar year.”
Tax liens are a way for local governments to earn back money lost in the upkeep of vacant property. All property taxes must be collected in order to meet the budgetary requirements these taxes support.
Liens are placed against the properties and are purchased by investors who, in turn, earn interest against the tax amounts. The investor interest rate for 2025 has been set by the state at 14%.
There are restrictions placed on who can and cannot buy property in this sale. The county dictates “No tax lien shall be sold to an elected or appointed county official, to a county employee, or to a member of the immediate family of such person or to the agent of any such county official or employee during the time the official or employee holds office or is employed. Additionally, you must be of legal age (18) to participate in our tax lien sale.”
There are also specific requirements to register for the sale. The county is required by the Internal Revenue Service to issue 1099-INT forms to investors who “...must complete a W-9 at the time of registration, or already have one on file from previous years, in order to participate in our tax lien sale. Registration is completed on the day of the event and will begin at 7:30 a.m.”
These are the necessary documents for registration.
W-9 form
Declaration of Statutory Compliance (Buyer # will be filled out at time of registration.)
ACH Authorization (While not mandatory, ACH is a faster, more secure way to receive funds on redemption of a tax lien.)
Premium bids are another stipulation placed by the county. These are bids placed in excess of the property tax and are only accepted on parcels with a delinquent amount above the value determined by the treasurer.
“Items over a certain dollar amount are considered premium bids and will be sold at the beginning of the sale. The premium bid limit for 2024 was $5,000.”
According to the Colorado Revised Statutes 39-11-148 C.R.S., “...tax sale certificates are automatically canceled after fifteen years. It is your responsibility to track your investment.”
Ava Fricke is a political journalist focusing on written media.