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certificates in terms of the rate of interest payable on the face
amount of the certificate up to a statutory maximum of 18
percent, with the certificate being sold to the party bidding the
lowest rate.4
The sale of a certificate creates a tax lien in favor of the
certificate holder that is superior to all other liens.5 Florida
law allows property owners or other persons to redeem tax
certificates and extinguish the tax liens created thereby by
payment to the tax collector of the face amount of the
certificate and interest accrued thereon at the rate bid from the
date of sale of the tax certificate until the date of
redemption.6 The county tax collector pays the amount received,
less service charges, to the certificate holder, who then
surrenders the certificate.
4 The interest rate is limited to 18 percent, accrued
monthly. Fla. Stat. Ann. sec. 197.172 (West 1989 & Supp. 1997).
5 The holder of a tax certificate could convert the tax lien
and certificate into a tax deed at any time after it had been
held for at least 2 years from Apr. 1 of the year of issuance,
but prior to its expiration 7 years after the date of issuance.
Fla. Stat. Ann. secs. 197.482, 197.502 (West 1989 & Supp. 1997).
We note that the tax certificate is worthless once it and the tax
lien expire without having been redeemed or converted into a tax
deed. See In re General Dev. Corp., 147 Bankr. 610, 613 (Bankr.
S.D. Fla. 1992).
6 The person redeeming the certificate must pay the tax
collector all taxes, interest, costs, charges, and omitted taxes,
as provided for by law, and, in addition, make additional
payments for costs incurred and the interest earned on the
certificate.
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