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  2. Colorado Tax Sale

What type of bidding process will be used?

Colorado county tax certificates sales are “bid up” auctions, in which a bidder is bidding up from the minimum sale price for each tax lien. The minimum sale price includes the delinquent taxes, interest, costs and other charges associated with each property. Often, tax liens may sell for an amount that exceeds the minimum sale price. This excess is commonly referred to as the “surplus” or “overbid.” The annual rate of redemption interest shall be nine percentage points above the discount rate, which discount rate shall be the rate of interest a commercial bank pays to the federal reserve bank of Kansas City using a government bond or other eligible paper as security, and shall be rounded to the nearest full percent. The tax certificate will be struck off to the person who will pay the delinquent taxes, interest, costs and charges at the established interest rate return on investment.