Changes

If property taxes are not paid, states have two means to collect:

If property taxes are not paid, states have two means to collect:

*One method (the tax deed auction) has the jurisdiction selling the property itself at public auction to the highest bidder, with a minimum price of taxes owed, interest/penalty, plus costs of sale.  The prior owner may or may not have the right to reclaim the property within a certain time, and if so may pay a steep penalty on top<ref>Texas allows a prior owner two years for agricultural or homestead property, and 180 days for all other types, to redeem, with a 25% penalty per year added.</ref>.

*One method (the tax deed auction) has the jurisdiction selling the property itself at public auction to the highest bidder, with a minimum price of taxes owed, interest/penalty, plus costs of sale.  The prior owner may or may not have the right to reclaim the property within a certain time, and if so may pay a steep penalty on top<ref>Texas allows a prior owner two years for agricultural or homestead property, and 180 days for all other types, to redeem, with a 25% penalty per year added.</ref>.

*Another method (the tax lien auction) has the jurisdiction selling, at public auction, a lien on the property (at a high interest rate<ref>Iowa offers a rate of 2% per month, or 24% annually, while Florida offers a maximum 18% annual rate with a guaranteed 5% flat return and Arizona offers a maximum 16% annual rate.</ref>); if the lien is not redeemed within a certain time, either the property is then sold or the lienholder can foreclose on it and take possession<ref>Florida sells the property at auction and the lienholder's investment is the opening bid (if no other bids are received the lienholder can take possession); Arizona allows the lienholder to foreclose without sale.</ref>.

*Another method (the tax lien auction) has the jurisdiction selling, at public auction, a lien on the property (at a high interest rate<ref>Iowa offers a rate of 2% per month, or 24% annually, while Florida offers a maximum 18% annual rate with a guaranteed 5% flat return (unless the original bidder offered a 0% interest rate, which is infrequent; the lowest rate commonly offered is 0.25%) and Arizona offers a maximum 16% annual rate.</ref>); if the lien is not redeemed within a certain time, either the property is then sold or the lienholder can foreclose on it and take possession<ref>Florida sells the property at auction and the lienholder's investment is the opening bid (if no other bids are received the lienholder can take possession); Arizona allows the lienholder to foreclose without sale.</ref>.

==States with lowest property taxes (per capita, annually)==

==States with lowest property taxes (per capita, annually)==