Who retains any surplus from the sale of a tax possession?

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Multiple Choice

Who retains any surplus from the sale of a tax possession?

Surplus funds from a tax sale go to the holder of the tax title because that purchaser has advanced the money to satisfy the delinquent taxes and related costs. The sale proceeds first cover the taxes, penalties, interest, and costs owed to the taxing authority. Any amount left over, the surplus, is retained by the tax-title holder as payment for the investment and risk they took in funding the tax debt. The original owner may have a later right to redeem or to claim the surplus under certain procedures, but until those rights are exercised, the surplus stays with the holder of the tax title. For example, if the taxes and costs total $5,500 and the sale brings in $8,000, the surplus is $2,500 and belongs to the tax-title holder.

Surplus funds from a tax sale go to the holder of the tax title because that purchaser has advanced the money to satisfy the delinquent taxes and related costs. The sale proceeds first cover the taxes, penalties, interest, and costs owed to the taxing authority. Any amount left over, the surplus, is retained by the tax-title holder as payment for the investment and risk they took in funding the tax debt. The original owner may have a later right to redeem or to claim the surplus under certain procedures, but until those rights are exercised, the surplus stays with the holder of the tax title.

For example, if the taxes and costs total $5,500 and the sale brings in $8,000, the surplus is $2,500 and belongs to the tax-title holder.

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