Colorado

In State Info by TSL Admin


Primary Sale Type:Tax Lien Certificatecolorado
Secondary Type(s):Tax Deed / OTC Lien
Sale Date(s):Annually: October - December
Bid Type:Premium Bidding
Rate of Return:9% per annum - above the federal discount rate (set annually)
Redemption Period:3 years from date of sale
Over-the-Counter:Lien
Statute Section(s):CO Revised Statutes - Title 39, Article 11
State Website:www.colorado.gov

State Overview:

There are 64 counties in the state of Colorado.

County Directory

The two most populous areas in Colorado are El Paso (622,000+) and Denver (600,000+) County.

Search Demographics:

Colorado is a Tax Lien Certificate state. Auctions happen annually, usually between the months of October through December, while OTC properties are available year-round. The county treasurer is responsible for conducting and officiating all liens sold.

Auction Process / Redemption:

Tax sales are usually conducted in or in front of the county courthouse building or any other county owned buildings. Investors will need to register prior to the auction, although most counties will allow you to register the day of the auction. The homeowner is given a 3 year right of redemption before a tax deed is issued. Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government. On September 1 of each year, the annual rate of redemption interest shall be established in the same manner, to become effective on October 1 of the same year. The majority of the counties use a 'Premium Bid' system when auctioning liens.

In Colorado, the bidder does NOT receive back any premium bid over the lien amount or any interest on that amount.

FAQ - Colorado

How are properties put on tax sales in Colorado?

  • In Colorado, all taxes are due and payable on January 1 of the year following that in which they are levied and become delinquent on June 16 of the said year. Properties are eligible for the tax sale in the same year they become delinquent.

Which government officials are responsible for tax sales in Colorado?

  • The county treasurer conducts tax sales in Colorado.

How often are Colorado tax certificate sales held?

  • Colorado county treasurers conduct one tax certificate auction each tax year/cycle.  These sales typically take place in the fall of each year, but must be held on or before the second Monday in December.

Where and how often will the Colorado auctions be advertised?

  • Advertising is placed in one or more local newspapers. Advertisement information typically consists of information reflected on the item listing. The item listing can be found using our auction calendar or by accessing the auction from Zeus.The county treasurer publishes information regarding an upcoming tax sale in a local newspaper(s) at least four weeks before the date of the sale. When the publication is made in a weekly newspaper, the notice is published in three successive weekly issues. When the publication is made in a daily newspaper, the notice is published three times, once each week, on the same day of the week.

What type of auction, or bidding, is used in Colorado?

  • Colorado county tax certificates sales are "bid up" auctions, in which a bidder is bidding up from the minimum sale price for each tax lien. The minimum sale price includes the delinquent taxes, interest, costs and other charges associated with each property. Often, tax liens may sell for an amount that exceeds the minimum sale price. This excess is commonly referred to as the "surplus" or "overbid". The annual rate of redemption interest shall be nine percentage points above the discount rate, which discount rate shall be the rate of interest a commercial bank pays to the federal reserve bank of Kansas City using a government bond or other eligible paper as security, and shall be rounded to the nearest full percent. The tax certificate will be struck off to the person who will pay the delinquent taxes, interest, costs and charges at the established interest rate return on investment.

What will I receive to verify my purchase after a Colorado auction?

  • After a lien buyer pays the amount of their winning bids, the lien buyer will be issued a certificate of sale for each tax lien purchased.

    Please note: It is critical that lien buyers safeguard the tax sale certificate(s) they are issued. Certain counties elect to hold the certificates for safekeeping, each county sets its own rules regarding this process.

What if taxes become due after I purchase the certificate at a Colorado tax sale? Am I responsible to pay after the sale?

  • In Colorado, a certificate holder, other than the county, who makes application for a tax deed shall pay the treasurer at the time of application all amounts required for redemption or purchase of all other outstanding tax certificates, plus interest, any omitted taxes, plus interest, any delinquent taxes, plus interest, and current taxes, if due, covering the property.

What is the redemption period for Colorado tax liens?

  • In Colorado, the period for redemption is three years after the date of the sale.

If the Colorado tax lien I purchased is redeemed, will I get my money back?

  • Upon redemption of a Colorado tax lien, you will receive the minimum sale price of the tax lien you purchased plus interest.

    Please note: The amount by which your purchase price exceeded the minimum sale price (the "surplus" or "overbid") will not be returned to you upon redemption.

State Resources:

ResourceDescriptionInstructions and Additional Information
Colorado County Treasurer and Public Trustee Associations.Tax sale dates for each county in Colorado.Also, click on "Treasurers (CCTA)" to view links and contact information for county treasurers in Colorado.