Behind on Property Taxes in Utah?

Back Taxes in Utah: Your Options

This page explains what happens in Utah when property taxes on land go unpaid. It covers the November 30 due date, the penalty and interest, the four year period you have to pay, the county tax sale in May or June, and what happens to money left over from a sale. It is written for owners of vacant land, including people who inherited land with back taxes.

Back taxes do not stop you from selling. Until the tax sale, you still own the land, and you can pay what is owed or sell the land and have the taxes paid from the sale at closing. This page is general information, not legal or tax advice. For your own case, ask your county treasurer or a Utah attorney.

When Utah property taxes become delinquent

Utah property taxes are due on November 30 each year. If November 30 falls on a weekend or holiday, the due date moves to the next business day. A payment made or postmarked after the due date is delinquent (Utah Code 59-2-1331).

A county can extend the due date to noon on December 30 by proclamation, for good cause or on a petition of at least 100 taxpayers (59-2-1332). By December 31, the treasurer mails a notice of delinquency or publishes a list of delinquent accounts (59-2-1332.5).

Penalties and interest on late taxes

Each delinquent parcel gets a penalty (59-2-1331). If you pay all of it by January 31, the penalty is 1 percent of the unpaid amount or $10, whichever is greater. If you pay later, the penalty is 2.5 percent or $10, whichever is greater.

If the taxes and penalty are not paid by January 31, interest is charged from January 1. The rate is 6 percent plus the federal funds target rate on that January 1, but it cannot be lower than 7 percent or higher than 10 percent a year. Each year that goes unpaid gets its own rate, and interest keeps running until the account is redeemed or the land is sold (59-2-1331).

Administrative costs are added too. Ask the treasurer for an exact payoff amount for the date you plan to pay.

What the county does next

Utah does not sell tax lien certificates. The county keeps the delinquent account on its books and you have about four years to pay. If the land is not redeemed by March 15 after four years from the date the taxes became delinquent, the treasurer puts it on the tax sale listing (59-2-1343).

The county auditor holds the tax sale in May or June. The auditor sends notice by certified and first class mail and publishes notice before the sale. Some counties hold the sale online (59-2-1351). The county can reject bids that are too low (59-2-1351.1).

After the county accepts a bid, the auditor signs a deed that conveys the land to the buyer. Sale money above the taxes, penalties, interest and costs is treated as unclaimed property under Utah's unclaimed property law (59-2-1351.1). A former owner can claim it through the state's unclaimed property process.

Redemption: getting your land back

In Utah, redemption means paying off the delinquent account before the tax sale. Anyone can redeem on behalf of the record owner at any time before the sale in May or June after four years (59-2-1346). You pay all delinquent taxes, tax notice charges, interest, penalties and administrative costs.

You do not have to pay it all at once. The treasurer must accept partial payments of at least $10 during the redemption period, and the final payment can be any amount (59-2-1346). Once the land is sold at the tax sale and deeded, it is too late to redeem.

A county can also, on application, accept less than the full amount due or defer the amount due when it decides that serves the public interest (59-2-1347). A deferral needs the written consent of any mortgage holder.

Your options if you are behind

Four years can pass fast, and each year adds penalty and interest. These are the common choices. Ask the treasurer which ones fit your account.

• Pay in full. Ask the treasurer for a payoff amount.
• Pay over time. The treasurer accepts partial payments of at least $10 on a delinquent account (59-2-1346). Ask whether your county offers a formal plan.
• Apply to the county for an adjustment or deferral if you have a hardship (59-2-1347).
• Redeem before the May or June tax sale in the fifth year (59-2-1346).
• Sell the land. We make a cash offer within 24 hours, charge no fees or commissions, pay closing costs and can close in as few as 7 days. The back taxes are paid at closing from the sale. Get a cash offer for your Utah land.

Selling land with back taxes in Utah

Unpaid taxes are a lien on the land, so a title company will find them. That does not stop a sale. At closing, the delinquent taxes, penalties, interest and costs are paid from the sale price, and you get the rest.

We buy land with back taxes, liens and title issues, land with no road access, and land from heirs and estates. If your land is on this year's tax sale listing, tell us right away. A sale has to close and the account has to be paid before the tax sale date.

Where to check your tax status

Your county treasurer can tell you what is owed, which years are delinquent and when your redemption period ends. Many counties show balances online. The Utah State Tax Commission publishes a list of county treasurers and general property tax information. Sale dates, online options and procedures vary by county, so confirm with the office.