Property Tax On Tax Deed Sales
When you successfully bid for a tax deed property, is the future property tax based on the amount you bid for that property or is it assessed according to the current FMV of the property at the time of the sale?
ephoric--(CA)----------------
Interestingly enough, there is nothing in the CA state statutes related to the collection of delinquent property taxes that relates to this question. Or wasn't the last time I looked, anyway.
So, I have had it happen both ways, with some properties the taxes are based upon my purchase prices, sometimes on some estimate of the fair market value of the property at the time of the sale. Sometimes those estimates were low of my estimate of fair market value, so the figure came in between the two possibilities you mention. I don't think you can count on that happening, but who knows for sure.
Whenever I turn in the "prelimary report of property transaction" to the assessor's offices, I always emphases that the price I paid was at a widely-advertised public auction, hoping that the person the assessor's office will use it as the fair market value.
Good Investing***********Ron Starr***********