Walton County Tax Lien Auction: 2024 Tax Certificate Sale Rules

Walton County 2024 Tax Certificate Sale Rules

The Walton County Tax Collector (Tax Collector) has the authority to promulgate these Rules under FS 197.432 and Rule 12D-13.045 of Florida Administrative Code. Florida Statutes require that each certificate is awarded to the person who will pay the taxes, interest, costs, and charges and will demand the lowest rate of interest that does not exceed the maximum dictated by the relevant section of the statute, FS 197.432 (6).

The Rules for the 2024 Tax Certificate Sale dictate that no bidder shall be associated with or otherwise controlled by any other bidder that has a common contractual, financial, or legal interest in the award of a single tax certificate.

The Rules

1. Each person must register to receive a bidder number in order to participate in the 2024 Tax Certificate Sale.
2. Each person must complete all registration steps required by the Tax Collector in order to participate in the 2024 Tax Certificate sale. These steps may include payment of a security deposit, submission of information required to process redemption payments and submission of a declaration of compliance with the Sale Rules.
3. A person may not register more than once for the 2024 Tax Certificate Sale.
4. Each person must provide a Social Security Number (SSN) if registering as individual or an Employer Identification Number (EIN) if registering as a corporation or other non-individual entity.  SSNs and EINs are used by the Tax Collector to report interest income earnings to the IRS.
5. An SSN or EIN can only be used by one bidder in the 2024 Tax Certificate Sale.
6. Registering multiple bidders for the purpose of improving the chances of being awarded any item in the 2024 Tax Certificate Sale is prohibited. No bidders participating the 2024 Tax Certificate Sale may have any common contractual, financial, or legal interest in the award of any tax certificates in the Sale.
7. An EIN may only be used for registration in the 2024 Tax Certificate Sale if:
1. The EIN was issued by the IRS for the purpose of federal tax administration and it was not obtained for the sole purpose of participation in tax certificate or tax lien auctions;
2. The EIN use is consistent with the IRS's rules, guidelines and documentation regarding acceptable use of EINs
8. The Tax Collector may screen all or some bidders who register for the 2024 Tax Certificate Sale to confirm that:
1. The bidder's SSN or EIN is valid and matches the name provided;
2. The bidder has not provided fictitious or misleading information, and the information is for a valid legal entity;
3. The bidders do not have relationships with any other bidders in the Sale that would improve their chances of being awarded any item.
9. The Tax Collector shall be responsible for enforcing the Sale Rules. The Tax Collector shall have the sole discretion to take actions against bidders found in violation of the Sale Rules. These actions shall include:
1. Removing the bidder's permission to bid;
2. Removing the bidder's permission to access the auction web site;
3. Barring the bidder from future sales; and
4. If the auction has been adjourned, the offending bidder will be removed from participation in future tax certificate auctions and the Tax Collector may pursue any and all remedies available at law to cancel the tax certificates.
10. The Tax Collector may use its rights and powers under Florida law to investigate, rule upon, or otherwise resolve disputes arising under these Rules. Otherwise, disputes arising out of rulings by the Tax Collector under the Sale Rules shall have exclusive venue and jurisdictions within this County.  

Examples of Prohibited Bidder Behavior

1. A person who has created or controls multiple legal entities registering more than one of those entities as bidders in the 2024 Tax Certificate Sale and submitting bids on the same auction item or items for each bidder. Florida Statute 1.01(3) defines the word person to include "individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations."
2. A company registering more than one employee as a bidder in the 2024 Tax Certificate Sale and submitting bids on the same auction item or items for each bidder.
3. A family cooperatively registering more than one member as a bidder in the 2024 Tax Certificate Sale and submitting bids on the same auction item or items for each bidder.
4. Any association, club, or other affiliation registering more than one member cooperatively as bidders in the 2024 Tax Certificate Sale and submitting bids on the same auction item or items for each bidder.
5. Any separate parties entering into a formal or informal agreement to avoid submitting bids on the same item or items in order to increase the chances of one of the parties winning an auction item or winning an auction item at a more favorable interest rate.