Here is more drek from DRECS:
http://drecsinc.com/index.html
http://drecsinc.com/index.html
Howard Liggett
President and CEO
Distressed Real Estate Consulting Services, Inc.
Member of the Real Estate Council
Howard C. Liggett is the President and CEO of Distressed Real Estate
Consulting Services, Inc. The Florida based company provides a broad range
of real estate consulting expertise to institutional investors, equity and
mortgage REITs, and alternative asset portfolios. Mr. Liggett also serves as
Executive Director for the National Tax Lien Association. He has nearly 30
years of experience in the distressed property and real estate investment field.
For twenty-one years, he served as Tax Administrator for Escambia County
(Pensacola), Florida, where he orchestrated the sale of over $300 million in
tax lien certificates. In 2003, he was appointed by the Jeb Bush administration
to serve on the Florida Department of Revenue Property Tax Administration
Tax Force for his expertise in establishing real estate development and tax
policy. He holds a Bachelor of Arts degree from the University of West Florida
and a Master of Science degree from Troy State University.
President and CEO
Distressed Real Estate Consulting Services, Inc.
Member of the Real Estate Council
Howard C. Liggett is the President and CEO of Distressed Real Estate
Consulting Services, Inc. The Florida based company provides a broad range
of real estate consulting expertise to institutional investors, equity and
mortgage REITs, and alternative asset portfolios. Mr. Liggett also serves as
Executive Director for the National Tax Lien Association. He has nearly 30
years of experience in the distressed property and real estate investment field.
For twenty-one years, he served as Tax Administrator for Escambia County
(Pensacola), Florida, where he orchestrated the sale of over $300 million in
tax lien certificates. In 2003, he was appointed by the Jeb Bush administration
to serve on the Florida Department of Revenue Property Tax Administration
Tax Force for his expertise in establishing real estate development and tax
policy. He holds a Bachelor of Arts degree from the University of West Florida
and a Master of Science degree from Troy State University.
The Following bio is taken from
the Gerson Lehrman Group's
"The Expert Network". Link:
http://www.glgroup.com/Council
-Member/Howard-Liggett-189105
.html
the Gerson Lehrman Group's
"The Expert Network". Link:
http://www.glgroup.com/Council
-Member/Howard-Liggett-189105
.html
December 2000
Jersey City tax liens an innovative move
Letters to the Editor
The Star – Ledger
Subject: U.S. Tax Lien Industry is Alive and Well
Published December 28, 2000
This letter is written in response to the Star-Ledger articles of November 19th and 22nd that provided
an in-depth examination of the Jersey City, New Jersey tax lien securitization engineered by then
Jersey City Mayor, Bret Schundler and J. Douglas Breen, Principal of Breen Capital Corporation. I
think it worth reiterating that this was New Jersey’s first securitization of delinquent ad valorem real
estate tax liens, an atypical collection measure implemented by a city facing a staggering 22%
property tax delinquency. Innovation is commonly the by-product of desperation and, hence, you
have the Jersey City arrangement. While imperfect in its administration, it was still a groundbreaking
move partnering the financial acumen of Wall Street with the decision by Jersey City officials to
privatize collection efforts.
Despite the growing pains encountered, tax lien securitizations remain a viable and growing segment
of the U.S. tax lien industry, a market which currently hovers between $4 – 5 billion annually through
the offerings of some 2500 separate taxing jurisdictions. As a matter of fact, just this past August, New
York Governor George Pataki signed a bill into law that will allow his state’s municipalities to pool their
delinquent property tax liens through a bond bank entity known as the New York Municipal Bond Bank
Agency. Utilizing the process of securitization, this state created entity will be allowed to convert tax
liens into revenue for cash starved local governments.
Investment in real estate tax liens has gone on for decades, primarily by local residents who knew
something about the property involved. That scenario changed dramatically in 1994 when Corporate
America realized the opportunities available in tax lien certificates. These public debt instruments can
yield double-digit returns between 12 and 36 percent, depending upon the taxing jurisdiction and
applicable state statute. Contrary to what many might believe, the entry of well funded institutional
investors into the, historically, private domain of local resident purchasers has proven to be a decided
plus for city-county governments, investors, and yes, the delinquent property owner!
Take Florida for example. Florida tax certificate auctions take place each June and are conducted in
all 67 counties by their duly elected Tax Collectors. The award of a tax lien certificate is made to the
bidder in attendance willing to accept the lowest interest rate on the delinquent taxes accrued to a
specific parcel of property. By statute, bidding in the Sunshine State begins at 18% and moves
downward even allowing for quarter increment bids (e.g. 17 ¾%). Before participation by companies
like Breen Capital Corporation, the issuance of tax certificates bearing 18% interest were
commonplace and the existence of competition was primarily token in form. That was good for local
government coffers, good for the local investor, and not so good for the delinquent property owner.
Since the mid-nineties, competitive bidding is a part of every tax lien sale in Florida. The discovery of
tax liens as investment alternatives by banks, insurance companies, and others has brought a win,
win, win situation to the marketplace. Florida counties are recovering delinquent tax dollars ($800
million this year), investors are making money, and property owners are facing the lowest interest
rates in many years.
The outlook for the U.S. tax lien industry is decidedly positive.
Sincerely,
Howard C. Liggett
Executive Director
National Tax Lien Association
Link:
http://www.ntlainfo.org/ne_dec2000_3.htm
Jersey City tax liens an innovative move
Letters to the Editor
The Star – Ledger
Subject: U.S. Tax Lien Industry is Alive and Well
Published December 28, 2000
This letter is written in response to the Star-Ledger articles of November 19th and 22nd that provided
an in-depth examination of the Jersey City, New Jersey tax lien securitization engineered by then
Jersey City Mayor, Bret Schundler and J. Douglas Breen, Principal of Breen Capital Corporation. I
think it worth reiterating that this was New Jersey’s first securitization of delinquent ad valorem real
estate tax liens, an atypical collection measure implemented by a city facing a staggering 22%
property tax delinquency. Innovation is commonly the by-product of desperation and, hence, you
have the Jersey City arrangement. While imperfect in its administration, it was still a groundbreaking
move partnering the financial acumen of Wall Street with the decision by Jersey City officials to
privatize collection efforts.
Despite the growing pains encountered, tax lien securitizations remain a viable and growing segment
of the U.S. tax lien industry, a market which currently hovers between $4 – 5 billion annually through
the offerings of some 2500 separate taxing jurisdictions. As a matter of fact, just this past August, New
York Governor George Pataki signed a bill into law that will allow his state’s municipalities to pool their
delinquent property tax liens through a bond bank entity known as the New York Municipal Bond Bank
Agency. Utilizing the process of securitization, this state created entity will be allowed to convert tax
liens into revenue for cash starved local governments.
Investment in real estate tax liens has gone on for decades, primarily by local residents who knew
something about the property involved. That scenario changed dramatically in 1994 when Corporate
America realized the opportunities available in tax lien certificates. These public debt instruments can
yield double-digit returns between 12 and 36 percent, depending upon the taxing jurisdiction and
applicable state statute. Contrary to what many might believe, the entry of well funded institutional
investors into the, historically, private domain of local resident purchasers has proven to be a decided
plus for city-county governments, investors, and yes, the delinquent property owner!
Take Florida for example. Florida tax certificate auctions take place each June and are conducted in
all 67 counties by their duly elected Tax Collectors. The award of a tax lien certificate is made to the
bidder in attendance willing to accept the lowest interest rate on the delinquent taxes accrued to a
specific parcel of property. By statute, bidding in the Sunshine State begins at 18% and moves
downward even allowing for quarter increment bids (e.g. 17 ¾%). Before participation by companies
like Breen Capital Corporation, the issuance of tax certificates bearing 18% interest were
commonplace and the existence of competition was primarily token in form. That was good for local
government coffers, good for the local investor, and not so good for the delinquent property owner.
Since the mid-nineties, competitive bidding is a part of every tax lien sale in Florida. The discovery of
tax liens as investment alternatives by banks, insurance companies, and others has brought a win,
win, win situation to the marketplace. Florida counties are recovering delinquent tax dollars ($800
million this year), investors are making money, and property owners are facing the lowest interest
rates in many years.
The outlook for the U.S. tax lien industry is decidedly positive.
Sincerely,
Howard C. Liggett
Executive Director
National Tax Lien Association
Link:
http://www.ntlainfo.org/ne_dec2000_3.htm
August 2000
Lien, Not Mean
Letters to the Editor - The New Haven Advocate Published 08/10/00
This letter is written in response to Carole Bass' article entitled "Lien on Me" [July 20]. Several points demand
clarification and even correction. For example, the claim that tax lien sales are a relatively new collection
vehicle for local governments, introduced in the mid-1990s, is inaccurate. The public sale of property taxes as
a method of revenue recovery has been around for decades in many states. In my home state of Florida, the
provision for county tax collectors and their empowerment to auction tax liens dates back to the state
constitution of 1885.
Why do public tax lien sales have such a long history in this country? The answer is simple. They work.
Currently there are some 2,500 taxing jurisdictions in the United States which in one fashion or another offer
public tax debt for sale. Consider the following:
* Current estimates of unpaid real estate taxes in the U.S. place the figure as high as $5 billion a year. The
options available for addressing this shortfall are limited to increasing the tax rate, borrowing funds, cutting
back on services or recovering the taxes through public sale. The first three options are noxious to most
property owners (i.e., voters), especially those who pay their indebtedness on time.
* Large, corporate tax lien investors like National Tax Assistance Corp. and Breen Capital are integral to the
collection process. It is their risk-taking that is providing the much-needed dollars to fund public schools, police
and fire services, public health and road construction and maintenance.
* National Tax Assistance Corp. and Breen Capital are neither vultures nor are they in the practice of
squeezing debtors as suggested in Ms. Bass' article. Both companies are professionally managed investment
firms who have no interest in property acquisition. Nowhere in their respective business plans is there any
mention of evicting the infirm, widowed or elderly from their houses! Any criticisms leveled at delinquent tax
collection methodologies should be addressed to those individuals responsible for constructing the state laws
governing such action. In most instances that is going to be the various state legislatures.
The bottom line is that local governments must have a way to recover tax dollars so that services to their
constituents remain uninterrupted. Tax lien sales are good for government.
Howard C. Liggett
Executive Director
National Tax Lien Association
http://www.ntlainfo.org/ne_aug2000_1.htm
Lien, Not Mean
Letters to the Editor - The New Haven Advocate Published 08/10/00
This letter is written in response to Carole Bass' article entitled "Lien on Me" [July 20]. Several points demand
clarification and even correction. For example, the claim that tax lien sales are a relatively new collection
vehicle for local governments, introduced in the mid-1990s, is inaccurate. The public sale of property taxes as
a method of revenue recovery has been around for decades in many states. In my home state of Florida, the
provision for county tax collectors and their empowerment to auction tax liens dates back to the state
constitution of 1885.
Why do public tax lien sales have such a long history in this country? The answer is simple. They work.
Currently there are some 2,500 taxing jurisdictions in the United States which in one fashion or another offer
public tax debt for sale. Consider the following:
* Current estimates of unpaid real estate taxes in the U.S. place the figure as high as $5 billion a year. The
options available for addressing this shortfall are limited to increasing the tax rate, borrowing funds, cutting
back on services or recovering the taxes through public sale. The first three options are noxious to most
property owners (i.e., voters), especially those who pay their indebtedness on time.
* Large, corporate tax lien investors like National Tax Assistance Corp. and Breen Capital are integral to the
collection process. It is their risk-taking that is providing the much-needed dollars to fund public schools, police
and fire services, public health and road construction and maintenance.
* National Tax Assistance Corp. and Breen Capital are neither vultures nor are they in the practice of
squeezing debtors as suggested in Ms. Bass' article. Both companies are professionally managed investment
firms who have no interest in property acquisition. Nowhere in their respective business plans is there any
mention of evicting the infirm, widowed or elderly from their houses! Any criticisms leveled at delinquent tax
collection methodologies should be addressed to those individuals responsible for constructing the state laws
governing such action. In most instances that is going to be the various state legislatures.
The bottom line is that local governments must have a way to recover tax dollars so that services to their
constituents remain uninterrupted. Tax lien sales are good for government.
Howard C. Liggett
Executive Director
National Tax Lien Association
http://www.ntlainfo.org/ne_aug2000_1.htm
December 2001
The State (Columbia)
November 30, 2001
Section: OPINION
Tax sales actually help local governments provide services
I just read Warren Bolton's column on the recent delay of Lexington County's tax sale for unpaid
property taxes.
It strikes me as particularly egregious that he would resort to name-calling in his description of
investors who attend the tax sales. The individuals who invest in public debt instruments like tax
certificates are neither "professional sharks" nor "vultures." They are professionally managed
investment firms with no interest in property acquisition.
Attendees at tax sales are there because of the public advertisements inviting them. The interest rates
and repayment plans are established by the S.C. Legislature, not by the investors.
Local governments must have a way to recover tax dollars so service remains uninterrupted. Unpaid
real estate taxes in the United States are estimated as high as $5 billion a year. The options available
for addressing this shortfall are limited to increasing the tax rate, borrowing, cutting back on services
or recovering the taxes through public sale.
Most of the properties up for sale are not homesteads, and they are not owned by the indigent.
Virtually every state has homestead protection statutes, and the poor do not own property.
Members of the National Tax Lien Association adhere to a code of ethics that includes respect for the
property rights of landowners. They are risk-takers providing the much-needed dollars to fund
Lexington County schools, public health and police and fire services.
HOWARD C. LIGGETT
Pensacola, Fla.
The State (Columbia)
November 30, 2001
Section: OPINION
Tax sales actually help local governments provide services
I just read Warren Bolton's column on the recent delay of Lexington County's tax sale for unpaid
property taxes.
It strikes me as particularly egregious that he would resort to name-calling in his description of
investors who attend the tax sales. The individuals who invest in public debt instruments like tax
certificates are neither "professional sharks" nor "vultures." They are professionally managed
investment firms with no interest in property acquisition.
Attendees at tax sales are there because of the public advertisements inviting them. The interest rates
and repayment plans are established by the S.C. Legislature, not by the investors.
Local governments must have a way to recover tax dollars so service remains uninterrupted. Unpaid
real estate taxes in the United States are estimated as high as $5 billion a year. The options available
for addressing this shortfall are limited to increasing the tax rate, borrowing, cutting back on services
or recovering the taxes through public sale.
Most of the properties up for sale are not homesteads, and they are not owned by the indigent.
Virtually every state has homestead protection statutes, and the poor do not own property.
Members of the National Tax Lien Association adhere to a code of ethics that includes respect for the
property rights of landowners. They are risk-takers providing the much-needed dollars to fund
Lexington County schools, public health and police and fire services.
HOWARD C. LIGGETT
Pensacola, Fla.
November 2001
The Record (New Jersey)
November 18, 2001
Section: OPINION
Edition: All Editions
Page: O3 The Record
Column: YOUR VIEWS
On Tax Obligations and Civic Duty
Regarding "Barber shop on razor's edge" (Page L-1, Nov. 12), which details the property tax woes of Louis
Taylor, a local barber, who owes $325,000 in back property taxes to Paterson:
The delinquencies go back as far as 1991 and reflect a decision to ignore the legal responsibility of paying
city-imposed property taxes on time. As is so often the case in stories of this nature, the article provides
much more print space to the personal biography of the tax delinquent than to the idea of individual
responsibility and the concept of fairness in public taxation.
Paterson City Council President Marilee Jackson voted against a resolution calling for the sale of Taylor's
property, explaining that it was upsetting to see an enterprise that had operated for 37 years, being put out
of business by the city. What is really upsetting is the inaction by city leadership, inertia that would allow any
property owner to remain delinquent for 10 years without any real attempt to collect the taxes. I'm sure
Taylor is a wonderful man, but what if all Paterson businesses took this same stance? The sidewalks and
streets in front of his barber shop would no longer be maintained. City police and fire services protecting
Taylor's property would be severely curtailed. The children whose hair he cuts would receive less funding at
the schools they attend. Tax Collector Kathy Gibson was absolutely correct in her statement that some
property owners simply choose not to pay. A decision by any local government body to not enforce property
tax collection laws is a choice to treat, unfairly, all those business and property owners who accept their
responsibilities and pay their tax bills in a timely fashion.
Howard C. Liggett
Pensacola, Fla., Nov. 15
The writer is executive director of the National Tax Lien Association.
All content © 2001- The Record (New Jersey) and may not be republished without permission.
All archives are stored on a SAVE (tm) newspaper library system from MediaStream Inc., a Knight-Ridder
Inc. company.
The Record (New Jersey)
November 18, 2001
Section: OPINION
Edition: All Editions
Page: O3 The Record
Column: YOUR VIEWS
On Tax Obligations and Civic Duty
Regarding "Barber shop on razor's edge" (Page L-1, Nov. 12), which details the property tax woes of Louis
Taylor, a local barber, who owes $325,000 in back property taxes to Paterson:
The delinquencies go back as far as 1991 and reflect a decision to ignore the legal responsibility of paying
city-imposed property taxes on time. As is so often the case in stories of this nature, the article provides
much more print space to the personal biography of the tax delinquent than to the idea of individual
responsibility and the concept of fairness in public taxation.
Paterson City Council President Marilee Jackson voted against a resolution calling for the sale of Taylor's
property, explaining that it was upsetting to see an enterprise that had operated for 37 years, being put out
of business by the city. What is really upsetting is the inaction by city leadership, inertia that would allow any
property owner to remain delinquent for 10 years without any real attempt to collect the taxes. I'm sure
Taylor is a wonderful man, but what if all Paterson businesses took this same stance? The sidewalks and
streets in front of his barber shop would no longer be maintained. City police and fire services protecting
Taylor's property would be severely curtailed. The children whose hair he cuts would receive less funding at
the schools they attend. Tax Collector Kathy Gibson was absolutely correct in her statement that some
property owners simply choose not to pay. A decision by any local government body to not enforce property
tax collection laws is a choice to treat, unfairly, all those business and property owners who accept their
responsibilities and pay their tax bills in a timely fashion.
Howard C. Liggett
Pensacola, Fla., Nov. 15
The writer is executive director of the National Tax Lien Association.
All content © 2001- The Record (New Jersey) and may not be republished without permission.
All archives are stored on a SAVE (tm) newspaper library system from MediaStream Inc., a Knight-Ridder
Inc. company.
May 2001
Corporate Tax Lien Investors Provide Important Funding
June 12, 2001
During the latter weeks of May and the first half of June, Florida's 67 County Tax Collectors will
orchestrate the state mandated recovery mechanism for delinquent real property taxes - the county tax
certificate sales. Florida is certainly not alone in this endeavor. Currently, there are over 2,000 taxing
jurisdictions in the United States, which in one fashion or another offer public debt for sale. Local
governments continue to rely heavily on ad valorem real estate taxes for the funding of public
infrastructure and tax lien sales offer an effective method for ensuring that the revenue spigot continues
to flow. How important are these tax auctions?
Present estimates of unpaid property taxes in the United States place the figure as high as $5 billion a
year. The choices available to government officials for remedying this shortfall are limited. Counties and
municipalities could increase the tax rate, borrow the necessary capital, reduce services or sell the tax
debt to investors willing to take the risk. The first three options are distasteful to most property owners,
particularly those who pay their tax liability on time.
So, who are these institutional risk takers willing to invest good monies in bad debt? They are not ogres.
They are not usurers. Nor are they a "necessary evil" scheming to separate the widowed, infirm, and
elderly from their homesteads! To the contrary, they are financial institutions, insurance companies, law
offices, management firms and private placement limited partnerships seeking only a fair return on their
investments at rates dictated by state statute. These large volume tax certificate buyers have no interest
in the acquisition of anyone's real estate. Actually, the participation by corporate America in Florida's tax
certificate auctions has created a win-win-win situation for all parties involved. Florida counties are
recovering millions of delinquent tax dollars, investors are making a fair return, and the delinquent
property owners are facing the lowest interest rates ever. This has not always been the case.
The Sunshine State's tax certificate sales are bound by statute to award each certificate to the bidder in
attendance willing to accept the lowest interest rate on the delinquent taxes accrued to a specific parcel
of property. Bidding begins at 18% and proceeds downward, even allowing for one-quarter increment
bids (e.g. 17 ¾%). Prior to the appearance of regional and national investors in the mid - '90s, the
issuance of tax certificates bearing 18 percent interest were commonplace and the existence of
competition was primarily token. This situation was good for local government, excellent for the local
resident investor, and not so good for the delinquent property owner. The missing element was authentic
free market competition. Institutional tax lien investors have supplied this element and, in the process,
millions of dollars to be used by Florida's local county and city governments for the building of
classrooms, police and fire protection, public health programs, and a myriad of other constituent services.
Truly, the tax lien industry is investing in Florida's communities.
Howard C. Liggett
Executive Director
National Tax Lien Association
SunTrust Tower
220 W. Garden Street
Pensacola, FL 32501
Toll Free (877) 470-9007
Corporate Tax Lien Investors Provide Important Funding
June 12, 2001
During the latter weeks of May and the first half of June, Florida's 67 County Tax Collectors will
orchestrate the state mandated recovery mechanism for delinquent real property taxes - the county tax
certificate sales. Florida is certainly not alone in this endeavor. Currently, there are over 2,000 taxing
jurisdictions in the United States, which in one fashion or another offer public debt for sale. Local
governments continue to rely heavily on ad valorem real estate taxes for the funding of public
infrastructure and tax lien sales offer an effective method for ensuring that the revenue spigot continues
to flow. How important are these tax auctions?
Present estimates of unpaid property taxes in the United States place the figure as high as $5 billion a
year. The choices available to government officials for remedying this shortfall are limited. Counties and
municipalities could increase the tax rate, borrow the necessary capital, reduce services or sell the tax
debt to investors willing to take the risk. The first three options are distasteful to most property owners,
particularly those who pay their tax liability on time.
So, who are these institutional risk takers willing to invest good monies in bad debt? They are not ogres.
They are not usurers. Nor are they a "necessary evil" scheming to separate the widowed, infirm, and
elderly from their homesteads! To the contrary, they are financial institutions, insurance companies, law
offices, management firms and private placement limited partnerships seeking only a fair return on their
investments at rates dictated by state statute. These large volume tax certificate buyers have no interest
in the acquisition of anyone's real estate. Actually, the participation by corporate America in Florida's tax
certificate auctions has created a win-win-win situation for all parties involved. Florida counties are
recovering millions of delinquent tax dollars, investors are making a fair return, and the delinquent
property owners are facing the lowest interest rates ever. This has not always been the case.
The Sunshine State's tax certificate sales are bound by statute to award each certificate to the bidder in
attendance willing to accept the lowest interest rate on the delinquent taxes accrued to a specific parcel
of property. Bidding begins at 18% and proceeds downward, even allowing for one-quarter increment
bids (e.g. 17 ¾%). Prior to the appearance of regional and national investors in the mid - '90s, the
issuance of tax certificates bearing 18 percent interest were commonplace and the existence of
competition was primarily token. This situation was good for local government, excellent for the local
resident investor, and not so good for the delinquent property owner. The missing element was authentic
free market competition. Institutional tax lien investors have supplied this element and, in the process,
millions of dollars to be used by Florida's local county and city governments for the building of
classrooms, police and fire protection, public health programs, and a myriad of other constituent services.
Truly, the tax lien industry is investing in Florida's communities.
Howard C. Liggett
Executive Director
National Tax Lien Association
SunTrust Tower
220 W. Garden Street
Pensacola, FL 32501
Toll Free (877) 470-9007
Points Howard repeatedly makes:
-That the lien bidding process is good for the property
owner who is being fleeced since it lowers the interest
rate they have to pay at in order to redeem. Something
like being thrown on a bed before being raped...
-That the tax lien industry supports public services,
firefighters, EMT's, schools etc, as if without the lien
scroungers these services would disappear. In actual
fact, the delinquency rate on property taxes is remarkably
low, typically less than 2%. The idea these services
depend on the collection of what amounts to only a
PORTION of that 2% is hogwash.
-That the lien bidding process is good for the property
owner who is being fleeced since it lowers the interest
rate they have to pay at in order to redeem. Something
like being thrown on a bed before being raped...
-That the tax lien industry supports public services,
firefighters, EMT's, schools etc, as if without the lien
scroungers these services would disappear. In actual
fact, the delinquency rate on property taxes is remarkably
low, typically less than 2%. The idea these services
depend on the collection of what amounts to only a
PORTION of that 2% is hogwash.
June 22, 2002
Section: Local State
Page: 7B
Howard C. Liggett
Howard C. Liggett
Readers
News-Press Fort Myers
Guest opinion
Proper conduct of sale tax collector's responsibility (link)
Re: The News-Press article, "Bid-rigging charged at tax auction." The article praised former Lee County tax
collector Bill Fussell and current tax collector Cathy Curtis for bringing the issue to the attention of the
Attorney General's Office. Ex-tax collector Fussell stated that this was a "big story" and was national in scope.
Mr. Fussell's statement is pure hyperbole and without basis in fact.
As a matter of fact, Mr. Fussell and Ms. Curtis share direct responsibility for the problem.
As Attorney General Bob Butterworth described the problem, "When the auctioneer selected a bidder at the
maximum interest rate of 18 percent, all the other bidders would drop out and the winning bid would be at the
top rate of return." Further, Butterworth said, "The bidders essentially took turns picking up certificates at the
highest allowable interest rate."
Fact: It is the responsibility of each of Florida's 67 county tax collectors, including Mr. Fussell and Ms. Curtis,
to conduct their sales in accordance with tax sale guidelines established and promulgated by the Florida
Department of Revenue. Included in that list of guidelines is a directive to each tax collector to encourage
competitive bidding and prohibit any activity that could be considered collusive in nature. This incudes
"rotational bidding" and a process known as "freeze bidding." Freeze bidding occurs when all participants in
the auction raise their hand in unison at the opening bid of 18 percent and there are not counter-bids to bring
the interest rate down.
The bottom line is that Fussell and Curtis did not do their jobs! It is the tax collector who is in charge of
running the sale and making sure that it and its participants abide by all applicable laws, rules and regulations.
If, as Mr. Fussell states, he suspects some sort of bid-rigging had been going on long before 1998, why did it
take him so long to come forward?
This is not to exempt individual bidders from responsibility, for they certainly have one to abide by all state and
federal laws.
A case in point regarding each tax collector's responsibility surfaced this past month in Orange County
(Orlando), where longtime incumbent Earl K. Wood was taken to task and threatened with removal from office
for tax sale improprieties for which he had direct responsibility. It may well be worth the attorney general's time
to investigate and determine whether those elected officials selling tax certificate investments are indeed
adhering to the law.
The National Tax Lien Association represents the interests of institutional tax lien investors around the United
States and condemns collusion and any other illegal activity that takes place during the course of delinquent
tax sales. We have a code of ethics we expect our membership to abide by and paramount among these is
respect for the property rights of others and the obligation to conduct their business practices in accordance
with those federal and state statutes governing the purchase and investment of tax liens and tax deeds.
Until 1994, when large volume purchasers of tax liens appeared at tax sales in Florida there was virtually no
competition among local investors, and delinquent property owners were faced with redeeming the state's
maximum allowed interest rate of 18 percent. That is not the case today. Tax sales are fiercely competitive
and interest rates go as low as 0.25 percent per annum.
The missing element was authentic, free market competition and I am proud to say that this has been supplied
by investor members of the NTLA and others.
A reminder to Fussell and Curtis: You are in charge of your tax sale and if you see improper behavior taking
place it is your job to stop it.
As a footnote, I think it is important to mention that tax lien investors provide American local governments with
$5 billion a year in revenue for operating public schools, public health departments and providing the services
of police and fire officers.
HOW TAX SALES WORK
Tax certificates essentially are liens placed on properties with overdue taxes. Each year, the certificates are
auctioned to investors who are willing to pay the taxes. A property owner who decides to reclaim his or her
property from a certificate holder must pay the delinquent taxes plus interest. During the auction, each
property goes to the bidder willing to buy the certificate at the lowest rate of interest.
- Howard C. Liggett is executive director of the National Tax Lien Association in Pensacola.
Section: Local State
Page: 7B
Howard C. Liggett
Howard C. Liggett
Readers
News-Press Fort Myers
Guest opinion
Proper conduct of sale tax collector's responsibility (link)
Re: The News-Press article, "Bid-rigging charged at tax auction." The article praised former Lee County tax
collector Bill Fussell and current tax collector Cathy Curtis for bringing the issue to the attention of the
Attorney General's Office. Ex-tax collector Fussell stated that this was a "big story" and was national in scope.
Mr. Fussell's statement is pure hyperbole and without basis in fact.
As a matter of fact, Mr. Fussell and Ms. Curtis share direct responsibility for the problem.
As Attorney General Bob Butterworth described the problem, "When the auctioneer selected a bidder at the
maximum interest rate of 18 percent, all the other bidders would drop out and the winning bid would be at the
top rate of return." Further, Butterworth said, "The bidders essentially took turns picking up certificates at the
highest allowable interest rate."
Fact: It is the responsibility of each of Florida's 67 county tax collectors, including Mr. Fussell and Ms. Curtis,
to conduct their sales in accordance with tax sale guidelines established and promulgated by the Florida
Department of Revenue. Included in that list of guidelines is a directive to each tax collector to encourage
competitive bidding and prohibit any activity that could be considered collusive in nature. This incudes
"rotational bidding" and a process known as "freeze bidding." Freeze bidding occurs when all participants in
the auction raise their hand in unison at the opening bid of 18 percent and there are not counter-bids to bring
the interest rate down.
The bottom line is that Fussell and Curtis did not do their jobs! It is the tax collector who is in charge of
running the sale and making sure that it and its participants abide by all applicable laws, rules and regulations.
If, as Mr. Fussell states, he suspects some sort of bid-rigging had been going on long before 1998, why did it
take him so long to come forward?
This is not to exempt individual bidders from responsibility, for they certainly have one to abide by all state and
federal laws.
A case in point regarding each tax collector's responsibility surfaced this past month in Orange County
(Orlando), where longtime incumbent Earl K. Wood was taken to task and threatened with removal from office
for tax sale improprieties for which he had direct responsibility. It may well be worth the attorney general's time
to investigate and determine whether those elected officials selling tax certificate investments are indeed
adhering to the law.
The National Tax Lien Association represents the interests of institutional tax lien investors around the United
States and condemns collusion and any other illegal activity that takes place during the course of delinquent
tax sales. We have a code of ethics we expect our membership to abide by and paramount among these is
respect for the property rights of others and the obligation to conduct their business practices in accordance
with those federal and state statutes governing the purchase and investment of tax liens and tax deeds.
Until 1994, when large volume purchasers of tax liens appeared at tax sales in Florida there was virtually no
competition among local investors, and delinquent property owners were faced with redeeming the state's
maximum allowed interest rate of 18 percent. That is not the case today. Tax sales are fiercely competitive
and interest rates go as low as 0.25 percent per annum.
The missing element was authentic, free market competition and I am proud to say that this has been supplied
by investor members of the NTLA and others.
A reminder to Fussell and Curtis: You are in charge of your tax sale and if you see improper behavior taking
place it is your job to stop it.
As a footnote, I think it is important to mention that tax lien investors provide American local governments with
$5 billion a year in revenue for operating public schools, public health departments and providing the services
of police and fire officers.
HOW TAX SALES WORK
Tax certificates essentially are liens placed on properties with overdue taxes. Each year, the certificates are
auctioned to investors who are willing to pay the taxes. A property owner who decides to reclaim his or her
property from a certificate holder must pay the delinquent taxes plus interest. During the auction, each
property goes to the bidder willing to buy the certificate at the lowest rate of interest.
- Howard C. Liggett is executive director of the National Tax Lien Association in Pensacola.
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further information or relevant
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further information or relevant
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This page is incomplete and still
being worked on...
being worked on...
Last revised 12-08-08
All blue highlighted text links to
additional notes and information
All blue highlighted text links to
additional notes and information
"Just because something is legal,
doesn't mean it's right..."
doesn't mean it's right..."