The Tax Lien Process

Every year in the Fall, the Treasurer's Office will release a list of properties that are delinquent on their property taxes. If those accounts remain delinquent, a tax lien sale will be held.

A public auction will be held to sell those liens. The starting bid is the taxes, interest, and fees owed. Investors at the public auction will bid a premium for purchasing those liens. 

A premium is an amount paid over and above the amount of delinquent taxes, interest, and fees owed. The premium bid is not part of the investment and interest is not paid on premiums.

Premiums will not be refunded or returned. At the conclusion of the sale, the total advertised amount plus the premium bid will be due.

Simple interest accrues on the tax lien at a rate of 9 percent above the Federal Discount rate as of September 1 each year rounded to the nearest full percent. 

That interest rate is constant throughout the life of the tax lien certificate. The tax lien certificate holder retains the right to endorse future delinquent taxes onto the certificate for up to 15 years.

At any time after the tax sale and before a property being sold at public auction, a property owner has the right to redeem (pay off) that lien. The tax lien sale is not a guaranteed way to make money or gain property. You must do your due diligence and understand the risk.

Payment of Subsequent Taxes

Endorsement, or "SUBTAX", provides the current certificate holder with the option of endorsing the current year's delinquent tax, adding to the original tax sale certificate. Endorsement letters will be mailed in August. 

Subsequent payment of the delinquent tax will earn the same rate of interest as the original certificate.

Colorado Revised Statutes, 39-11-119, provide a holder of a certificate of purchase may pay subsequent taxes on the property of which the buyer holds an unredeemed certificate, and this payment will be endorsed onto both the original certificate and the tax lien sale record in the Treasurer's office.

Redemption of Taxes

If the owner of the property redeems their tax lien, (i.e., pays their taxes), you will receive a check from the Treasurer's Office which will include the taxes, fees, and interest you purchased at the sale, together with interest that has accrued from the day of the sale to the date of redemption. You are not refunded for any premium bids that were paid.

In January, you will be sent a 1099 for any interest earned for the year that the certificate was redeemed. Be sure to let us know if you have a change of address after the sale.

Treasurer's Deed

For a list of documents related to the active treasurer's deeds, please click here.

If no Intents to Redeem are filed, title to the property will automatically vest as of the close of business in the Treasurer’s office eight (8) business days after the sale.

If Intents to Redeem are filed, title will vest upon the expiration of all redemption periods allowed by law.

No less than eight (8) business days, or after the expiration of all redemption periods, the Treasurer shall execute and record a Treasurer’s Deed.

Bidding at a Treasurer's Deed Public Auction

This brief explanation is only a guideline. We urge you to seek the advice of legal counsel if you are interested in participating in  Treasurer’s Deed Public Auctions. You should familiarize yourself with the Colorado Revised Statutes 39-11.5-104 governing the Treasurer and the Treasurer’s Deed Public Auctions.

Anytime 3-15 years after the purchase of a tax lien certificate, an investor, “lawful holder,” can request that the property be sold at a Treasurer’s Deed public auction. A $750.00* deposit will be required to cover the costs associated with advertising, posting, and notification of interested parties, and other expenses of the Treasurer’s Office associated with the Treasurer Deed’s public auction. The application is available through the Treasurer’s Office. Please email treasurerdl@gunnisoncounty.org  *Fees may increase in 2025.

This Treasurer’s Deed public auction will provide an opportunity for the property to be sold at fair market value with overbid funds going to the property owner, bringing Colorado into compliance with the Tyler v. Hennepin County decision.

Prior to the Public Auction

Known Interested Party Notices are normally published as a Legal Notice for three consecutive weeks. The Public Auction date shown in the Legal Notice is the scheduled auction date for the Treasurer’s Deed Public Auction. The Public Auction will not be held before that date.

Public Auction dates can be postponed or "continued". Notices of continuances are made available on the Gunnison County Website (Treasurer).

The opening bid is completed by the Treasurer and made available on the Gunnison County website after 3:00 PM two (2) business days prior to the Public Auction date.

The Treasurer's Deed Public Auction

Public Auctions are held promptly at 10:00 a.m. on Thursday in the office of the Treasurer and Public Trustee, 221 N Wisconsin, Suite T, Gunnison, CO 81230.

Cell phones should be turned off and there will be no conversation during the auction except for relaying bid amounts.

Persons desiring to bid must register with the Gunnison County Treasurer’s office prior to the auction time of 10:00 a.m. At the time of registration, the bidder must review the bidding process and sign an Acknowledgement of Understanding.

The registered bidder is required to produce payment at the time he/she is deemed the successful bidder with a Cashier’s Check made to the Gunnison County Treasurer. (If the Cashier’s Check is more than the actual bid, a refund will be processed in three (5) business days following the auction. (Arrangements must be made with the Treasurer after the close of the Public Auction.)

Once the Public Auction and bid information are presented, the Treasurer will entertain verbal bids by the bidder raising their hand and saying the bid. The initial bid may begin at $1.00 more than the announced opening bid, from any registered bidder present. After that, bids will be accepted in no less than $100 dollar increments. The bid will be repeated once by the Treasurer, then wait for additional bids. When no other bids are verbalized, the last bidder will provide payment.

If the payment is not available or incorrect for whatever reason, the auction will be continued at the bid amount prior to the last bid. When a successful bidder has produced the payment, the Public Auction will be officially closed.

A Certificate of Option for Treasurer’s Deed is issued in the name of the successful bidder and it is recorded in the Gunnison County Clerk and Recorder's office within five (5) business days.

Since a Certificate is an assignable document, all assignments must be delivered to the Treasurer.

The assignment must be recorded with the Gunnison County Clerk and Recorder.

Redemption

There is no owner redemption period.

Junior lienor Intents to Redeem must be filed with the Treasurer within eight (8) business days after the sale.