Tax Sale

Taxes on real property are due and payable without interest as of the first day of July in each taxable year. The taxes are overdue and in arrears on the first day of the succeeding October. Interest and penalties accrue effective October 1 at the rate of one percent (1%) per month or any fraction of a month until paid.

Any unpaid State, County and City taxes on real property constitute a lien on the real property from the date they become due until paid. Additionally, in accordance with §1-8-101 of the Anne Arundel County Code and the provisions in Article 13, Title 5 of the Anne Arundel County Code, all utility charges, levies, front foot assessments and special benefit charges constitute a lien on the real property so assessed and are to be collected and enforced in the same manner as County real property taxes.

Anne Arundel County holds a tax sale each year to sell its 1st lien on real property with outstanding taxes and fees. Should this 1st lien be sold on your property, you may still have the legal right to redeem the property from tax sale and prevent foreclosure of the property for failure to pay any taxes and fees that are in arrears.

More information about the tax sale process can be found in documents listed on the right-hand side of the Office of Finance page hosted on the County’s website.

The tax sale is held on a date in June as determined by the Controller. On this date the County will sell its 1st lien on the property to a tax sale purchaser. To remove this lien or “redeem the property” the owner or other person with a legal interest in the property must pay the amounts required per the Tax – Property Article of the Annotated Code of Maryland at any time until the right of redemption has been finally barred by decree of the circuit court in which the foreclosure proceeding is filed. 
 

To redeem the property a person must pay the County:

1. The total tax sale price of the property plus interest at 1.5% per month or 18% per annum;
2. Any necessary taxes, interest and penalties accruing after the date of the tax sale.

There are several important dates to consider in the tax sale process:

1. You may redeem the property during the same month of June in which the tax sale is held without paying the next Fiscal Year taxes.
2. Effective July 1, the new Fiscal Year begins and a new real estate tax bill is issued for the property that may need to be paid in order to redeem.
3. After sufficient time from the date of the tax sale, the lien purchaser is entitled to be reimbursed for certain fees.  For owner-occupied residential property, this is seven (7) months after the date of the tax sale and four (4) months for all other property.  These fees include, a title search fee not exceeding $250, and for reasonable attorney's fees not exceeding $500, unless an action to foreclose the right of redemption has been filed.
4. After sufficient time from the date of the tax sale, a tax sale lien purchaser may file a complaint to foreclose all rights of redemption on the property, provided that all notice requirements under §14-833 of the Tax-Property Article of the Annotated of Maryland have been met.  For owner-occupied residential property, this is nine (9) months after the date of the tax sale and six (6) months for all other property.  It is very important to note that upon filing this complaint, the lien purchaser may be reimbursed for reasonable attorney’s fees that exceed the $500 cap listed in “3” above, in accordance with §14-833 (a)(4) of the Tax-Property Article of the Annotated of Maryland. 
    

Tax sale redemptions can be remitted via mail by sending your payment in full to:

Payments remitted via the mail are processed based on received-by date and postmark dates cannot be honored.

Payment may also be made in person at the Arundel Center in Annapolis. Payment to redeem must be via cash, certified check or money order. (Business checks, personal check, and credit card payments cannot be accepted.)

Property owners that are delinquent on their real estate taxes or other charges due to Anne Arundel County have been mailed notices of tax sale and advertisement. These notices have been sent to the mailing address of record per the Maryland Department of Assessments and Taxation.

If you are in arrears with real estate taxes or other charges, please contact the Tax Department at (410) 222-1735 or via email at taxsale@aacounty.org to discuss payment of the outstanding charges.

The last day to pay without the tax lien being advertised is disclosed on the notice of tax sale.  After that date and once the advertising file has been transmitted to the publication, property owners will be assessed an advertising fee in accordance with the Annotated Code.  This fee is reimbursement for the costs associated with required advertisements of the tax lien in local papers as required.  Additional information about the tax sale auction to be held by Anne Arundel County will also be published on the County's website at this time.

Tax sale notices are generated by Anne Arundel County use information provided via the Maryland Department of Assessments and Taxation. This same information is used for official notices, such as the triennial assessment notice. Property owners may verify the mailing address of record, real property assessments, or other information via the State's website at: https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx

Any questions about the information maintained online should be directed to the Maryland Department of Assessments and Taxation by calling (410) 974-5709 or via email at sdat.aa@maryland.gov

The following information is provided per Maryland Annotated Code, Tax-Property Article § 14-812

Summary of the Tax Sale Process

1. Anne Arundel County conducts an annual tax sale in accordance with State of Maryland Law and County Code in order to collect delinquent property taxes and other delinquent amounts owed to the County, such as delinquent water and wastewater charges.
2. At least thirty days before a property is advertised for tax sale, a legal notice is sent to the property owner informing them of the delinquent property taxes and/or other delinquent charges.
3. If payment (by cash, cashier’s check or money order) is received by the County’s Office of Finance for the total amount due prior to the tax sale date, the property will not go to tax sale. 
4. If the delinquent amounts are not paid before the tax sale date, then a tax lien certificate is sold at tax sale. Only the tax lien certificate is sold at tax sale, not the property itself. The property owner still retains ownership of the property after the tax sale. The tax lien certificate purchaser has the right to foreclose on the property if the property owner fails to pay off the debt within a limited time period.
5. To redeem the property from tax sale, all necessary amounts owed to the County must be paid in full. This will include the amount of the tax sale lien plus interest and may include other amounts due to the County such as real property tax bills, water/wastewater bills, etc.
6. Once sufficient time has passed from the date of the tax sale, the tax sale lienholder may require that legal fees be paid and a lien release be obtained before the County would be able to accept payment for the tax sale redemption. This is seven months for owner-occupied residential property or four months for all other property. Notices for these legal fees must be sent by the lienholder and these legal fees must be paid before the property owner can pay all necessary amounts owed to the County to redeem the property from tax sale.
7. Starting about two months after the first notice is sent, if the property has still not been redeemed from tax sale, the tax sale lienholder may file a foreclosure case against the property in the Anne Arundel County Circuit Court. This is approximately nine months after the tax sale for owner-occupied residential property or about six months for all other property. At the time a foreclosure case is filed, the amount due for legal fees is likely to increase.
8. Property owners may still redeem the property from tax sale and retain the property by paying the legal fees and paying all necessary amounts owed to the County while the foreclosure case is active. However, once a final judgment foreclosing right of redemption is entered against the property, the property owner will lose ownership of the property.

If this property is your principal residence and you are having difficulty paying the taxes on the property, there are programs that may help you.

Free counseling is available to help homeowners make plans to pay their bills and keep their homes by calling the telephone number of the Maryland HOPE Hotline at (877) 462-7555.

The homeowners' property tax credit may significantly reduce the property taxes you owe if you have limited income and assets.

You may be eligible for the credit at any age, but if you are 70 years old or older, you may be eligible for a special benefit that may reduce the taxes you owe for the past 3 years. The Homeowner’s Property Tax Credit is administered by the State Department of Assessments and Taxation. You can reach that office at:

Phone: (410) 767-4433 or (800) 944-7403

Website: dat.maryland.gov/homeowners

There is a State Tax Sale Ombudsman established under § 2-112 of the Tax-Property Article and is available to:

1. Answer questions about the tax sale process.
2. Assist homeowners with applying for tax credits and other benefits that may help homeowners to pay delinquent taxes and retain their homes.
3. Provide more information about the homeowners’ property tax credit and how to apply.

The State of Maryland Tax Sale Ombudsman can be reached at:

Phone: (410) 767-4994 or (833) 732-8411

Website: dat.maryland.gov/taxsale

Email: sdat.taxsale@maryland.gov

If you are a homeowner of limited income you may qualify for the Homeowner Protection Program, which could keep your home out of tax sale for at least 3 years and could help you to pay the taxes you owe and keep your home.

For more information about the program and how to apply, please contact the State Tax Sale Ombudsman:

Phone: (410) 767-4994 or (833) 732-8411

Website: dat.maryland.gov/taxsale

Email: sdat.taxsale@maryland.gov

Can someone at the County help me with questions?

Please contact our Tax Sale Department at (410) 222-1735. If you are hearing or speech impaired, then dial 711.

What if I have a mortgage on my property?

If you have a mortgage on your property, you may want to call your mortgage company and advise them about the tax sale. Your mortgage company may be able to assist you.