The local government receives its money immediately upon the sale, rather than waiting on a
lengthy collection procedure. Past due taxes that may have been on the rolls for years are
resolved. The property becomes a tax source for the local government. In essence, property
that had stopped generating taxes once again starts to contribute to the local government’s
treasury.
What are the most valuable benefits of permitting tax lien sales?
What are some other benefits of permitting tax lien sales?
In some jurisdictions, more than 20 percent of the property taxes are overdue. Reducing that
percentage by selling the liens does the following:
Keeps taxes down by increasing a local government’s annual revenues.
Assures receipt of expected cash flow, improving future planning and
budgeting.
Keeps the cost of borrowing down by improving the local government’s
financial position.
Decreases future tax delinquencies (once delinquent taxpayers realize tax
liens on their properties will be sold, there is a significant decrease in
number of delinquencies).
How do responsible taxpayers benefit from tax lien sales?
First and foremost, responsible taxpayers benefit by realizing lower taxes. Since local
governments immediately receive money for delinquent taxes and improve their certainty of
cash flow for future budgeting, responsible taxpayers will benefit from a lower risk of future tax
increases. In effect, those who pay their taxes on time, no longer subsidize those who do not.
