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Neosho Daily News - Neosho, MO
  • Tax sale nets $30,600

  • More than $30,600 was brought in during the recent Newton County tax sale.


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  • More than $30,600 was brought in during the recent Newton County tax sale.
    “It is always the fourth Monday of August, by statue,” Newton County Collector Jim Otey said.
    Therefore, the recent sale – held at the Newton County Courthouse – was held at 10 a.m. this past Monday.
    “It was all real estate that was a minimum of two years delinquent,” he said. “We offered 32 properties and all of them but nine received bids.”
    Otey added it is kind of “misleading when we say we are selling property.”
    “We are not actually selling the property, we are selling the county’ lien on the property,” said Otey. “Then eventually down the line, a minimum of a year out, the people who were awarded the bid to hold the lien, if they have done a few things that law require, have the ability to actually own the property.”
    The property was all throughout the county. Otey noted his staff started the process in March, when the collector’s office closed their fiscal books. They then print what they call delinquent books and balance those to make sure.
    When they started the process, there were a total of more than 700 properties, but over time, property owners came in to pay their taxes. That narrowed the field to the 32 properties for the sale. Then the day of the sale, the bidding starts.
    “We start the bidding at the amount of the back taxes are owed,” he said. “If one person wants it, we stay there for a couple of minutes and let people bid and if they chose not to bid, then we close it once, close it twice and award the bid for that amount. If two people get involved, bidding against each other — sometimes they do — then we will run it just like an auction, until one of them drops out and if someone wants in at that amount, we pick it back up. Most of the people there for the most part have done their homework and are there for a couple of specific properties, that either suits their needs or close to theirs or something like that. It is not really a huge bidding war between people at all.”
    When it was all said and done, $30,624.27 was taken in.
    “We will be actually dispersing $20,059.64 that will go out to the schools, roads and fires, libraries,” he said. “The other $10,564.63 is called surplus money or overbid money that is what we talked about two people bidding against each other and it goes above and beyond the amount of the back taxes owed.”
    That money is held in a fund, which is called a school fund. Otey noted if the people come back to reclaim their property, the people who made the bid gets their money back out of that fund with no interest.
    Page 2 of 2 - “If a collector’s deed is issued, where the people never do come back to get their land, but if they know about this money, they can apply for the amount of money over that the person bid on their land,” he said. “In a sense, they would be selling their land then for the amount of the overbid.  And then if nobody comes back to reclaim land, and the person either defaults or gets a collector’s deed, after three years, we will disperse that overbid money to the school district where the property lies.”

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