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1. How does the tax sale work?

If a landowner doesn't pay thier property taxes, then the Treasurer's Office advertises the land for 3 weeks in the newspaper, along with a notice giving the time and place for the sale. People show up at the sale and sign up to become a purchaser. The names of all purchasers are mixed and random names are drawn in succession, beginning at 9 a.m. That purchaser can choose an available Parcel from the list of delinquent accounts. The purchaser pays the amount of the taxes due on the land, plus interest to the date of the sale, advertising fees, and a certificate fees. The county issues the purchaser a Certificate of Purchase, entitling the purchaser to a lien on the land. The county distributes the taxes paid by the purchaser to the taxing entities in the county. The landowner has 4 years from the date of the sale to pay the purchaser back his money, including all fees and 18% interest, or the purchaser may apply for a Tax Deed on the land.

There is a limit to one bidder per tax ID.  This limits companies from showing up with dozens of bidders all operating under the same tax ID.

2. When will the tax sale take place?

Usually, Converse County holds its tax sale on the first Monday in August, at 9 a.m. in the Courthouse Community Room in the basement. Although technically the sale continues until 5 p.m., all properties are usually sold by 11 a.m. The law does not specify the date of the sale, except that it needs to be after May 11 (when taxes are delinquent) and before September 1 (when the current year's taxes become due). Therefore, there is a wide variance between counties on when their tax sales are held and how the sales are conducted.

The easiest way to find out when the tax sale is being held is to keep an eye on the legal notices in the newspaper. Each county Treasurer is required to advertise the properties for sale, along with the date, time and place of sale in the county newspaper for 3 weeks prior to the sale. The Converse County Treasurer's Office advertises in both the Douglas Budget and the Glenrock Independent. When it is time for the tax sale parcels they are also listed on the Treasurer's homepage.

3. What is sold at a tax sale?

Several things are offered at the tax sale. First, any land or fixed buildings (real property) on which any part of the taxes aren't paid. This can be real estate or industrial property. Secondly, land subject to Special Assessments on which the taxes aren't paid in full, most notably the Monkey Road assessment for district 0205. Personal property (mobile homes, commercial furniture, farm equipment and more) is not sold at the sale.

4. How do I find out what's for sale and where it is?

Before purchasing any certificate at the tax sale, it's a good idea to find out a little bit about the property. After all, there's a chance you could end up owning it. The advertisement the Treasurer's Office runs for the 3 weeks prior to the sale lists the legal descriptions of all the property that could be offered at the tax sale (some property owners will pay their taxes during that 3 weeks, removing their property from the sale).

The County Assessor's Office can show a legal description and, if they have it, a look on the map to see what the parcel consists of and where it is located. It's also a good idea to take the legal description to the County Clerk's Office and check to see if there are any outstanding liens against the property. Although Wyoming Statutes indicate that a purchaser could take a Tax Deed subject only to special assessment liens, knowing the status of the property could help avoid problems later. When it comes to purchasing certificates on properties at the tax sale, it's definitely buyer beware.

5. How much does it cost to purchase a certificate at the sale?

In order to receive a Certificate of Purchase (CP), of course you've got to pay some money. The advertisement run by the County Treasurer's Office for the 3 weeks prior to the sale lists an amount for each parcel that may be offered for sale. This amount consists of:
- the delinquent taxes on the parcel
- the interest due to the date of the sale
- $20 advertising fee
- $20 CP Fee

The taxes and interest are distributed to the taxing entities, so they will receive the money they depend on to operate during the fiscal year. The advertising fee is used to pay for the cost of advertising the parcels for the 3 weeks prior to the sale in the local newspapers. The CP fee is used to pay for the costs of the certificates and the tax sale. The entire amount paid by the purchaser for the CP is subject to interest (even the fees) if the landowner redeems the property.

6. What rights to the property does the certificate holder have?

A common misconception about tax sales is that the actual land is conveyed to the purchaser at the sale. This is not the case. The person who pays the amount listed in the newspaper for a parcel receives a Certificate of Purchase (CP) for the land. The CP only entitles the holder to a lien on the property. The CP holder has no right to use or make improvements to the property. In fact, making improvements on the property would not be in the best interest of the CP holder, as the landowner may Redeem the property within 4 years from the date of the sale, thus paying off and removing the assigment from the account.

When the property is redeemed by the landowner, the CP holder is reimbursed for all the taxes and fees they paid plus a 3% penalty and 15% interest per year. The Certificate is then returned to the Treasurer's Office and the CP holder has no more interest in the property.

7. Once I receive a Certificate of Purchase, what do I have to do?

Once a purchaser has paid the amount advertised in the newspaper for a property and received a Certificate of Purchase (CP), they have a lien on the property. Technically, the purchaser doesn't have to do anything else. If the property owner redeems the property (pays all the back taxes, fees and interest), the CP holder is paid and the CP is destroyed. If the property owner does not redeem the property within 4 years from the date of the tax sale, the CP holder may apply for a Tax Deed on the property. However, a CP holder has the option of paying the subsequent years' taxes on the property as they become due.

Here's an example of why you might want to do that - a landowner doesn't pay his 1999 taxes. The Treasurer's Office offers a certificate of purchase for the property at the tax sale in August, 2000. A CP holder pays the taxes, interest and fees and receives a Certificate of Purchase. In September, 2000, the 2000 taxes are billed. The CP holder may pay the taxes. If the CP holder does, they would be reimbursed the taxes plus 15% per year interest and a 3% penalty if the landowner ever redeems the property.

If the CP holder does not pay the taxes, and neither does the landowner, the Treasurer's Office will offer the property for sale again in August, 2001. A different purchaser buys a CP for the land at that sale. Once 4 years has passed for the original purchaser, he/she applies for a Tax Deed. But, in order to get a clear Tax Deed, the purchaser now has to redeem the property from the second CP holder, or as many as there were in the 4 years. That means the original CP holder must pay any subsequent CP holders the taxes plus interest, fees and penalties.

That's why most CP holders pay taxes for subsequent years - even though it's not required

8. If the landowner pays the taxes, what do I get back?

A Certificate of Purchase (CP) is said to be "redeemed" when the landowner pays all taxes paid by the CP holder, plus interest and fees. The landowner pays this amount to the Treasurer's Office, and the Treasurer's Office then passes it on to the CP holder.

Here's a breakdown of what's collected from the landowner at the time of redemption:
- The CP Amount
- A 3% penalty on the CP Amount
- Interest on the CP Amount at 15% per year
- Any subsequent taxes paid by the CP Holder
- Interest on the subsequent taxes at 15% per year

The 3% penalty on the CP Amount allows the CP holder to get some return on the money paid at the sale even if the landowner redeems the property right away. For example, if a certificate is purchased at the tax sale for $500, and the landowner redeems the property the next day, the CP Holder won't receive much interest, but will be reimbursed all the money paid at the tax sale plus the 3% penalty. So, the CP Holder would receive an additional $15 for their 1 day investment.

9. How do tax deeds work?

If the landowner does not redeem the certificate within 4 years from the date of the sale, the CP holder is entitled to file for a tax deed. A tax deed conveys the ownership of the property to the CP holder, subject to any special assessments. The actual statute [39-13-108(vii)(B)] says: "Any grantee of a tax deed ... and successors in title are entitled to possession of the real property conveyed by the deed and the deed is prima facie evidence to title to the property described subject to special assessments for local and public improvements."

Wyoming law also prescribes a strict procedure that must be followed in order to properly apply to the Treasurer's Office for a tax deed. It is the burden of the CP holder to make sure all the steps are followed properly, and failure to follow the procedure could result in the invalidation of the tax deed, should it ever be challenged in court.

10. How do I apply for a tax deed?

In order to apply for a tax deed, a Certificate of Purchase (CP) holder must follow a strict procedure outlined in Wyoming law. Although the general guidelines are listed here, anyone applying for a tax deed should examine W.S. 39-13-108(e) to make sure they are in compliance with the law.

Here are all the general rules:
- The CP Holder must apply for a deed after 4 years from the date of sale but no later than 6 years.
- Written notice must be served on each person in possession of the property and on the person in whose name the property was assessed.
- If no person occupies the property, notice must be published in a newspaper in the county for 3 consecutive weeks.
- The application for deed must be made after 3 months, and not more then 5 months from, the last notice in the newspaper.
- Notice must be sent by certified mail to any mortgagees that have liens filed on record.

All notices must list:
- When the CP Holder purchased the certificate
- In whose name the property was taxed
- A description of the real property
- The year the property was taxed or assessed
- When the Time of Redemption will expire
- When application for the tax deed will be made
- The amount of any special assessments levied on the property

Once the CP Holder has completed all these steps, they can apply to the Treasurer's Office for a tax deed by signing a statement certifying they have complied with all the procedures, and surrendering their original CP.