Kentucky

KY

The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.

Sale type

Tax lien

Redemption

12 mo

Interest / penalty

Flat rate · 12%

Sale timing

Varies

Rules in plain English

Sale type

Tax lien

The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.

KRS 134.490(3)(b); KRS 134.420

“A statement that the certificate of delinquency is a lien of record against the property for which delinquent taxes are owed”

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Redemption period

12 mo

12 months (1 year)

KRS 134.490(2); KRS 134.546

“Anytime after the expiration of the one (1) year tolling period established by KRS 134.546, the third-party purchaser may institute an action to collect the amount due on a certificate of delinquency.”

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Interest / penalty

Flat rate · 12%

12% flat per year.

KRS 134.125(1)

“A certificate of delinquency or personal property certificate of delinquency shall bear simple interest at twelve percent (12%) per annum.”

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Bid method

Not documented

KRS 134.128(2)(d)

“Establish a process to be used by county clerks in determining the order in which interested third-party purchasers may select and pay available certificates of delinquency at the annual sale.”

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Sale schedule

Varies

Sale timing varies by county.

KRS 134.128(2)(a)

“The department may stagger the schedule so that sales are conducted on different dates and times in different counties.”

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Bidder process

01If you will pay more than five certificates of delinquency statewide in a calendar year, more than three in any county, or invest more than $10,000 statewide, register with the Department of Revenue by filing the notarized Form 62A370A at least 60 days before the purchase (KRS 134.128(3), 134.129(1), (2); 103 KAR 5:190 Section 2(1))
02Register with the county clerk for the annual sale, submitting your name, addresses, and phone number; a copy of the department certificate of registration; lists of the priority and current certificates of delinquency you intend to purchase; the sworn related-party statement; and the registration fee (KRS 134.128(2)(e); 103 KAR 5:180 Section 3)
03Submit the advance deposit no later than five days before the sale: 100% of each priority certificate plus associated clerk's fees and 25% of each current certificate (KRS 134.128(2)(g); 103 KAR 5:180 Section 4)
04Find the sale date on the Department of Revenue's published annual statewide schedule, which is posted at least ten days before the first sale and administered county by county by the clerk (KRS 134.128(2)(a)1)
05At the sale, the clerk first allocates priority certificates to the holder of the most recent prior-year certificate, then the remaining certificates are selected in lot sizes by order of a random drawing held on the day of the sale (103 KAR 5:180 Section 6)
06Pay the outstanding balance at the time set by the clerk, no later than ten business days after the sale; unpaid certificates are not assigned and the county may forfeit the deposit (103 KAR 5:180 Section 5)
07Receive the certificate of delinquency as an assignee; it bears simple interest at twelve percent (12%) per annum (KRS 134.126(5)(b); 134.125(1))

Registration: Yes
Registration mode: Not documented
Registration deadline: a third-party purchaser must register with the county clerk for the annual sale at least one week in advance; registration materials are due no later than 15 days before the sale and the deposit no later than 5 days before the sale (KRS 134.128(2)(e); 103 KAR 5:180 Section 3(3)); a purchaser meeting the purchase thresholds must also register with the Department of Revenue at least 60 days before the purchase (103 KAR 5:190 Section 2(1))
Registration fee: 250
Deposit required: Yes
Deposit amount: Not documented
Deposit percent: Not documented
Deposit refundable: Yes
Sale format: in_person
Payment deadline: any outstanding balance after application of the deposit is due at a time set by the county clerk but no later than ten business days after the sale; if full payment is not made the certificates are not assigned and the deposit may be forfeited (103 KAR 5:180 Section 5)
Payment methods: unknown
Residency required: Not documented

Application for Certificate of Registration to Purchase Certificates of Delinquency (Department of Revenue Form 62A370A), filed notarized with the department at least 60 days before any purchase requiring registration (103 KAR 5:190 Section 1(4), Section 2(1))
County clerk registration including the purchaser's name, physical address, mailing address, and phone number; a copy of the Department of Revenue certificate of registration; lists of the priority and current certificates of delinquency to be purchased; and a sworn statement that the purchaser is not participating with any related person or entity to obtain an advantage at the sale (103 KAR 5:180 Section 3(2))
A registrant, and its directors, officers, members, and managers, must be current and in good standing on all taxes owed to the Commonwealth (KRS 134.129(4)(a))
Multiple related entities, or multiple individuals representing related interests as separate entities, are prohibited from participating in the selection process at an annual sale (KRS 134.128(2)(d)3)
Before the annual sale, only the persons listed in KRS 134.127(1)(a) may pay a certificate of delinquency; third parties must wait for the scheduled sale (KRS 134.128(2)(b))

KRS 134.128(2)(e)

“Require all potential participants in the sale to register at least one (1) week in advance with the county clerk;”

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KRS 134.128(2)(g)

“Establish advance deposit requirements for registered participants based upon the maximum amount the registered participant may pay for desired certificates of delinquency;”

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KRS 134.128(2)(h)

“Establish a registration fee to be paid to the clerk. The registration fee paid to each county shall not exceed two hundred fifty dollars ($250) annually and may be tiered;”

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KRS 134.128(2)(d)3

“Establish fairness for all participants by prohibiting the participation of multiple related entities, or multiple individuals representing related interests as separate entities in the selection process at an annual sale.”

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KRS 134.128(2)(a)1

“Establish an annual statewide schedule for the sale of certificates of delinquency in each county. The schedule shall be published on the department's website at least ten (10) days prior to the first sale. The sale in each county shall be administered by the county clerk.”

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KRS 134.128(3)

“Any person who, in any calendar year: (a) Pays or plans to pay more than five (5) certificates of delinquency statewide; (b) Pays or plans to pay more than three (3) certificates of delinquency in any county; or (c) Invests or plans to invest more than ten thousand dollars ($10,000) in the payment of certificates of delinquency on a statewide basis in any calendar year; shall register with the department annually as provided in KRS 134.129.”

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KRS 134.129(2)

“The person shall hold a certificate of registration from the department prior to the payment of any certificate of delinquency that results in the person owning more than five (5) certificates of delinquency statewide, more than three (3) certificates of delinquency in any county, or investing more than ten thousand dollars ($10,000) in the payment of certificates of delinquency statewide in a calendar year.”

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KRS 134.129(4)(a)

“As part of the application process, the department may require that the applicant and any of its directors, officers, members, and managers: (a) Are current and in good standing on all taxes owed to the Commonwealth;”

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KRS 134.126(1)(b)

“The county clerk may accept payment by any commercially acceptable means. The county clerk may limit the acceptable methods of payment to those that ensure that the payment cannot be reversed or nullified due to insufficient funds.”

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KRS 134.125(1)

“A certificate of delinquency or personal property certificate of delinquency shall bear simple interest at twelve percent (12%) per annum.”

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103 KAR 5:180 Section 3(1)

“A third party purchaser shall register with the county clerk prior to participating in the county's sale. A new registration shall be required for each year's sale.”

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103 KAR 5:180 Section 3(3)

“Except as provided by paragraphs (b) and (c) of this subsection, the registration material required by subsection (2) of this section shall be submitted to the county clerk no later than fifteen (15) days prior to the sale. (b) The deposit required by Section 4 of this administrative regulation shall be submitted to the county clerk no later than five (5) days to the sale. (c) The list of current certificates of delinquency required by subsection (2)(d) of this section shall be submitted to the county clerk no later than ten (10) days prior to sale.”

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103 KAR 5:180 Section 4(1)

“A purchaser shall deposit funds with the county clerk at the time of registration in the following amounts: (a) 100% of the value of each certificate of delinquency included on the purchaser's list of priority certificates of delinquency; (b) All clerk's fees associated with each certificate of delinquency included on the purchaser's list of priority certificates of delinquency; (c) Twenty-five (25) percent of the value of each certificate of delinquency included on the purchaser's list of current certificates of delinquency.”

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103 KAR 5:180 Section 4(3)

“The county clerk shall refund any unused portion of the deposit to the purchaser no later than ten (10) business days after the completion of the sale.”

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103 KAR 5:180 Section 4(4)

“The county clerk shall: (a) Accept payment of the deposit in a method of payment that complied with KRS 134.126(1)(b); and (b) Not require that a deposit be made in cash.”

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103 KAR 5:180 Section 5(1)

“Payment of any outstanding balance, after application of all deposits, shall be made at a time determined by the county clerk, but no later than ten (10) business days after the sale.”

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103 KAR 5:180 Section 6(2)(b)

“The order of selection of lots by registered purchasers shall be determined by a random drawing on the day of the sale.”

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103 KAR 5:190 Section 2(1)

“A person required by KRS 134.129(1) to register annually shall file a notarized application with the department at least sixty (60) days prior to the purchase of any certificate of delinquency that requires registration under KRS 134.129 and this administrative regulation.”

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Notes