The document provides information about Okaloosa County, Florida's annual tax certificate sale, including details about the tax certificates being sold, the bidding process, payment procedures, redemption and transfer options, and strategies for purchasing certificates. Tax certificates offer investors a first lien position on real estate taxes and can earn high interest rates of up to 18% if unredeemed, but come with risks such as the potential for bankruptcy or properties going to tax deed sale. The sale allows investors to bid on over 7,000 tax certificates issued annually on properties with delinquent property taxes.

1. The Tax Certificate SaleOkaloosa County Tax Collector

2. 1. Tax Certificate
2. Advertisement
3. Registration
4. Research

3. 5. Deposit
6. Bidding
7. Batch Schedule
8. Results and Payment

4. 9. Statistics
10. Strategies

5. 1. Tax Certificate

6. • First Lien on Real Estate Taxes
• 18% Interest Unless Bidder Specifies Less
• 7 Year Statute of Limitation

7. Lifespan of a 2015 Certificate
May 30
Issue Date
May 30
Expiration
Date
7 years
Eligible to File TDA
Lose investment!
April 1, 2017
(2015)
(2022)

8. 2. Advertisement

9. Published 3 Consecutive Weeks
May 9, 16, 23
Also Available on:
www.BidOkaloosa.com

10. 273 002S220979000H0030 HX 3002.85
SMITH JOHN K & KATHERINE F

11. 3. Registration

12. www.BidOkaloosa.com
Register Anytime
Start Bidding on May 9th

13. 4. Research

14. • Legal Descriptions
• Property Types
• Encumbrances
• Tax Sale Booklet
• Recorded Liens
• Historical Tax Data
• Sales Information
• Ownership History
• Maps
• Advertisement List

15. Tax Collector’s Website
www.OkaloosaTax.com
Historical Tax Data
Advertisement List
Tax Sale Booklet

16. Property Appraiser Website
www.OkaloosaPA.com
Maps
Legal Descriptions
Property Types
Sales History

17. Ownership Records
Liens
Encumbrances
Clerk of Courts Website
www.OkaloosaClerk.com

18. SECTION - TOWNSHIP - RANGE - SUBDIVISION - BLOCK - LOT
Parcel ID Numbers
36-1S-24-1392-0002-0030

19. 5. Deposit

20. All Payments Made via ACH
• Required PRIOR to bidding
• 10% of Budget
• Credited Towards Winning Bids
• Balance Refunded via ACH

21. 6. Bidding

22. • Bidding Starts at 18%
• Bid down in 0.25%
increments
• Lowest interest rate bid wins
• Start bidding on May 9th

23. • Bidding is by Proxy
• Submit and Withdraw Bids
• Blind Bidding
• Tiebreakers determined by
Random Number Generator

24. 5% Minimum Interest
• Total Return on Investment
• Your interest rate takes over once
you’ve surpassed the minimum 5%

25. Certificate Sold at 12% Interest
1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%
Certificate Holder is Paid
5% Interest on their
Investment if redeemed.
Certificate Holder is Paid the
rate of interest they have
earned to date if redeemed.

26. 7. Batch Schedule

27. 1st Batch @ 8 AM
1/2 of Certificates
2nd Batch @ 10 AM
1/2 of Certificates
3rd Batch @ 2 PM
Certificates receiving
no bids in prior batches

28. 8. Results & Payment

29. Unofficial Results
are available
immediately after
each batch closes.

30. Final Payment is Due
June 2nd @ 5 PM

31. 9. Statistics

32. • Average Cost of Certificates
• Certificates Issued
• Average Interest Rates

33. Average Cost of Certificates
$30.17 $242,922.99
$878.14
Middle 80%

34. Issued Certificates
0
1750
3500
5250
7000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
3,872
4,4364,274
5,551
6,157
5,714
4,835
3,391
2,6392,6022,707
3,4703,520

35. Average Interest Rates
0%
4%
8%
12%
16%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
6.42%
8.76%8.47%
9.81%9.69%
15.87%
15.12%
7.05%7.17%
5.67%
6.23%
8.94%
10.30%

36. 10. Strategies

37. • Homestead v. Non-Homestead
• Individual Bidding Trends
• Winning Bid History
• Redemption History

38. Increased Risk to Homeowner
Made up 17% of Certs Issued in 2014
Average Winning Bid in 2014 was .44%
Average Cost of Certificate in 2014 was $1296.73
95% of Certs Issued at 0.25% Bid
Possibility of Vacant or Undeveloped Parcels
Made up 83% of Certs Issued in 2014
Average Winning Bid in 2014 was 3.42%
Average Cost of Certificate in 2014 was $1540.27
62% of Certs Issued at 0.25% Bid
Homestead Non Homestead

39. Individual Bidding Trends
• Average Winning Bid Rate was 6.56%
• Average Cost of Certificate Won was approx. $243.21
• 18.34% of Certs Sold were Won by Individual Bidders
• 84% of Certs Won were Located in North End of County

40. Winning Bid History
Bid History is available on www.OkaloosaTax.com & www.BidOkaloosa.com
• Interest Rate on Sold Certificate
• Date Cert was Issued
• Face Amount of Issued Certificate
• Date Certificate was Redeemed

41. Redemption History
• Timeframe of Return on Your Investment
• Estimate of Interest Return on Investment
Example - Based off of 8 Month Avg. Redemption
• Face = $1,000 w/ Winning Bid @ 12% (1% per month)
• Interest earned over 8 month period: 8% (1% x 8)
• $1,000 x 8% = $80 interest earned

42. Clean Up

43. Tax Deed Process
• Eligible after taxes have been
delinquent for 2 years.
• Results in Sale of Property
• Certificate Holder may apply only
if they wish to.
• Applicant is required to pay off all
other outstanding certificates,
taxes, title search fee and
application fee, certified mail fee,
advertisement fee and Clerk of
Court Processing fee.

44. • Bidding is currently held in-person
at the Crestview Court House.
• Rate of Interest on Certificate is no
longer valid. The TDA will earn
18% (1.5% per month) until sold or
redeemed.
• Opening bid starts at all monies
plus earned interest due to the
applicant.
• If there are no bids during the sale
the Tax Deed will be issue in the
name of the applicant.
Tax Deed Process

45. Bankruptcy
• 7 Year Statute of Limitations is
“frozen” during this time period.
• Tax Collector will file a claim,
however, it would be in the
certificate holders best interest to
seek their own legal counsel to
protect their interest.
• Possibility for Judge to lower rate
of interest on issued certificates.
• Possibility for partial redemption
payments.

46. Certificate Transfers
• The transfer of tax certificates
between parties is allowed.
• Tax Collector requires an executed
certificate transfer form plus a fee
of $2.25 per certificate.
• Tax Collector has no involvement
with the transferor and transferee
in respect to the agreed upon
purchase price.

47. Struck Certificates
• Any certificate that is not sold at
auction is considered “struck” to
the county.
• These certificates are issued at the
rate of 18% interest.
• Available for purchase via our
website.
https://okaloosa.lienexpress.net

48. Certificate Redemption
• Redemptions made in these ways:
1. Property owner pays
delinquent tax.
2. Another certificate holder for
the same property files a tax
deed application.
3. Certificate is cancelled or
corrected.
• Redemptions will be paid via ACH
to the account on record
• Redemption voucher will be
emailed to the email address on
record.

49. Questions?
TaxDept@OkaloosaTax.com
850-651-7604