Pub. 9 2018 Issue 4

www.wvbankers.org 22 West Virginia Banker By Debra Lee Allen R eal property taxes, and more particularly the sale of tax liens, can become an issue in a commercial workout. If the taxes have not been paid, then has the tax lien been sold or when will it be sold? Is there a redemption period? How long is it and does the bank need to pay the taxes? A few years ago, in an effort to make my responses to these questions more efficient, I put together a “cheat sheet,” outlining the steps of the process. I had occasion to revisit the outline a couple months ago, and thought it might be useful to others. The outline is provided in two parts —the first part presented here and the second part to be presented in the next issue of West Virginia Banker. When are real property taxes due? West Virginia real property taxes are paya- ble in two installments, which are due Sep- tember 1 of the tax year and March 1 of the calendar year following the tax year. The first installment is delinquent if not paid by October 1 of the tax year. The second installment is delinquent if not paid by April 1 of the following calendar year. Interest at the rate of 9% per year will accrue on delinquent taxes. For most West Virginia counties, real estate tax information is online. Just search for the county and property taxes, and you will be directed to a website where you can search an online database with certain information. Step 1. Pre-sale notice by the Sheriff W.Va. Code § 11A-3-2 [2007] On or before the 10th day of Septem- ber, the county sheriff publishes a list of delinquent lands, to include all real estate in the county with delinquent property taxes as of September 1 of the year following the tax year, together with a notice of sale. The form of notice is set out in the statute. The sale date will be a day between October 14 and November 23, after the September in which the list is published. In addition to publication, no less than 30 days prior to the sale, the sheriff must send a notice of the delinquency and the date of sale by certified mail to: (1) each person whose taxes are delinquent; (2) each person having a lien on the real property for which the taxes are due, which persons are disclosed by a state- ment filed with the sheriff upon taking interest in the property (§ 11A-3-3); (3) each person with an interest in the property or with a fiduciary relationship to a person with an interest in the proper- ty who has, in writing, requested notice of delinquency; and (4) for properties that include a mineral interest, but not surface rights, each per- son who has, in writing, requested such notice of delinquency. Properties may be redeemed at any time prior to sale. § 11A-3-4. Step 2. Tax lien is sold at public auction W.Va. Code § 11A-3-5 [2000] The Sheriff sells the (unredeemed) tax lien between 9 a.m. and 4 p.m. on any business working day after October 14, but before November 23. The sale is by public auction to the highest bidder, and is conducted in the order as set forth on the delinquent land list and notice. The tax lien may not be sold for an amount less than the total taxes, interest and charges then due. Also, the sheriff will require payment of any subsequent taxes that have become due prior to the time of sale. § 11A-3-14(a). A Refresher on the Sale of Tax Liens in West Virginia: Part One