Changes in Georgia Tax Lien Sales Imminent

A bill pending in the Georgia state senate is meant to address the tax lien certificate sale process in Fulton County. Alleged abuses of the current sale system are behind the proposed changes; namely Fulton County’s practice of selling tax lien certificates to private companies which then charge exorbitant monthly interest rates and fees to the delinquent homeowner. The legislation is not meant to affect county collection of taxes due, but change the practice of selling tax lien certificates to private investors in order to protect property owners in the state of Georgia.

What many residents of the state perceive as detrimental are the improper notification system, high costs to the property owners, and a negative effect on communities that are struggling to revitalize their towns. Many people believe that the tax lien certificate sales do not really save counties any money; Fulton County, in particular, which is the only Georgia county that holds tax lien sales in order to collect past-due property taxes.

The new bill would limit the properties up for sale at the tax lien auction. No longer included would be those parcels where the assessed value is being disputed and properties that are less than a year delinquent. Currently, counties can sell tax lien certificates on real estate that is only 30 days past due on tax payment. Opponents of the new plan say this will only drag out the process of collecting and foreclosing.

Proper notification is also being addressed. The new legislation would require certified delivery of the lien notice. Opponents argue that many times the problem occurs when the notice is sent to the wrong address and this provision wouldn’t help matters – but it would cost the counties more money in postage.

One proposal that is being offered instead of the new bill is to limit the ability of companies who themselves owe back property taxes from purchasing tax lien certificates at auction.

At this point, the bill has been approved by the state Senate and is now before the House. Before the dust settles, expect further regulations to be proposed to Georgia’s tax lien certificate sale system and targeting of Fulton County’s policy to sell the certificates to private companies. Many elected officials are refusing to be transparent and provide requested information on tax lien sales so the struggle to reform the system and possibly even outlaw Fulton County tax lien sales will probably get nastier before it’s resolved. Stay tuned for more information as it becomes available.