State Summary

• Tax Collection Method: Liens
• Tax Collection Entity: Sheriff
• Property/Tax Records Administrator: Property Valuation Administrator
• Taxes Due: December 31
• Taxes Delinquent: January 1
• Tax Sale Date/Period: Most Kentucky counties hold their tax lien sales in July or August
• Tax Sale Registration Requirements: Most Kentucky counties require investors to register at least one week before the sale. Some Kentucky counties require a registration fee (not to exceed $250) and some Kentucky counties requires a deposit that is applied toward any purchases an investor makes. Additionally, investors must register annually with the Kentucky Department of Revenue
• Tax Sale Administrator: County Clerk or Sheriff
• Primary Bidding Type: Sports-Draft Style
• Redemption Period: 1 year
• Redemption Interest Rate/Flat Penalty: 12% simple interest per annum
• Over-the-Counter Sale Opportunities: None

Along with additional registration requirements, which vary by county, tax lien investors must also register annually with the Kentucky Department of Revenue to participate in Kentucky Delinquent Property Tax Sales.

This can vary by county, but many Kentucky counties use a "sports draft style" auction. In a sports draft style auction, the order in which investors will purchase tax liens is selected at random. Let's assume that there are 30 investors at a sale with bidder numbers of 1-30. The organizer of the sale selects one of these 30 numbers at random. If he/she picks 12, bidder number 12 will get the first "pick". He/she is able to pick and purchase any available tax lien certificate. Then bidders 13, 14, 15 and so on get a chance to purchase their selections. When all 30 bidders have had a chance to select and purchase their first lien, the next round starts, usually going in reverse order (i.e. 11, 10, 9, 8 and so on, instead of 12, 13, 14, 15 and so on). The auction continues until there are either no more tax lien certificates or interested investors remaining.

Generally, investors pay the face value (minimum bid) of the tax lien at sports draft style auctions. Investors can "drop out" of the draft at any time. For this type of a sale, it is crucial that investors show up on time and get their bidder numbers. Some counties will not allow latecomers to participate in the draft, while other counties may give latecomers the last pick in the next round. Rules and guidelines for sports draft style auctions will vary by county, so be sure to read these rules and/or guidelines before participating in the sale.

 

Kentucky County Reference