Annual Property Tax Sale
Annual Tax Sale
The City is required by the Local Government Act to sell at Tax Sale all properties whose taxes have not been paid for 3 years. A public auction will be held on the last Monday of September. The sale is held at 10:00 a.m. in Council Chambers, City Hall: 101-310 Ward Street, Nelson.
The Local Government Act gives the Collector authority to sell a property for the Upset Price which equals outstanding taxes, plus penalties, interest, and costs. Payment is to be made in the form of cash, certified cheque or bank draft for at least the upset price amount. The balance owing must be paid before 3 p.m. on the day of the sale. If payment is not received by 3:00 p.m. on the day of the Tax Sale, the property will be offered for sale again at 10:00 a.m. on the following day.
List of Properties
The Local Government Act requires that the list of properties that may be available for sale are advertised in a local newspaper on two separate dates, the last publication being not less than 3 days or more than 10 days prior to the tax sale. A final list of the properties still available for sale will be distributed at the time of the tax sale.
Owner of the Property
The owner of the property, or any registered charge holder, will be notified of the sale of the property for taxes. They have a period of 12 months to redeem the property by paying the outstanding taxes. Only at the end of the redemption period, if the property has not been redeemed, will title pass to the successful bidder. If the property is redeemed, all of the amounts paid to the City by the successful bidder will be returned with interest at the rate prescribed under Section 11(3) of the Taxation (Rural Area) Act.
The successful bidder has only limited legal rights to the property during the redemption period. The registered owner continues to have use and enjoyment of the property.
The successful purchaser of tax sale property that results in transfer of title at the end of the redemption period will be required to pay any property purchase taxes and goods and services taxes that may apply to the sale. The effect of the tax sale is to also act as a quit claim in favour of the purchaser of all mortgages registered against the property.