To pay taxes on a property with a tax certificate, the certificate must be redeemed in certified U.S. funds drawn on a U.S. bank (cash, certified check, cashier's check, money order). Redeeming the certificate will cancel the lien placed when the certificate was sold.
The cost to redeem the certificate within 60 days of the date of delinquency is the face value of the certificate, plus a $6.25 office fee. On the 61st day of delinquency the amount of interest due is 5% of the face value until the interest accrued at the bid rate exceeds the minimum 5%, plus a $6.25 office fee. Certificates with a 0% bid interest rate, do not accrue interest, nor does the 5% minimum mandatory interest apply, however, the face value, plus a $6.25 office fee is applicable at the time of redemption.
The certificate holder will receive a check for the face value of the certificate plus the amount of interest accrued when the certificate was redeemed, if any. All interest earned is reported to the Internal Revenue Service. Interest may be withheld for Federal tax purposes at the request of the IRS.