Phillips County, Arkansas Tax‑Sale Guide

When people in Arkansas don’t pay their property taxes, the land can be taken by the state. Later, this land is sold at a public auction. The Arkansas Commissioner of State Lands organizes these auctions. Unlike some other states that sell just the tax lien, Arkansas sells the actual property deed. This means the buyers own a part of the land. 

This guide will help you understand Phillips County tax sales. You’ll also see why investors from all over are interested in Arkansas tax deeds.

Brief overview of Arkansas tax deed investing

Arkansas has a tax-deed system. If taxes aren’t paid, properties are sent to the state. After a year, the state sells them at an auction from July to October. 

Bidders start with the amount owed in taxes and fees. The buyer gets a limited warranty deed, but they may need legal help to fully own it. 

Sometimes, starting bids can be just a few hundred dollars, so investors can get properties for less. However, it’s important to research the property before buying.

Important details for Phillips County

Why Phillips County is attractive for tax‑deed investors

Phillips County, Arkansas, is an excellent spot for tax-deed investors since you can quickly access properties after buying deeds instead of liens. Tax deed sales occur from July to October, and minimum bids are usually just back taxes owed. Since July 1, 2023, sold properties cannot be reclaimed, allowing for immediate ownership. The local economy is diverse, mainly focusing on farming, including rice, poultry, and cotton, supported by good transport options.

Local Culture and Outdoor Fun  

Helena-West Helena is the main town near the Mississippi River. Despite a declining population, the area offers affordable homes and rich culture, highlighted by attractions like the Delta Cultural Center and the King Biscuit Blues Festival in October. Phillips County also has parks for fishing, bike trails for scenic views, and convenient transportation links to larger cities. The friendly small-town atmosphere includes events like farmers markets, making it a great place for anyone interested in outdoor activities and history.

Why invest in Phillips County tax‑deeds?

High returns with manageable risk

Bids for properties come from unpaid taxes, not their actual value. This means you can get a property for much less than it’s worth. If you do your homework on the area and any issues, you can manage the risks. After a 90-day legal wait, you can sell, rent, or develop the property. This can lead to better returns than stocks, all secured by real estate.

Open to all investors

In Arkansas, people from other states or countries can take part in tax-deed auctions. But they need to sign up and show who they are. If someone is from another country, they should know that they can’t buy property at live auctions alone. They might need to team up with someone in the U.S. to make it work.

Understanding the Arkansas tax‑sale process

How the auction works

1. Certification: Counties certify delinquent parcels to COSL. The sale date must be at least one year after certification.
   
2. Notice: COSL sends notice by mail and publication. Owners may redeem by paying all taxes, penalties, interest and costs.
   
3. Registration: Bidders register at the auction (30 minutes prior) and receive a bid card.
   
4. Bidding: Parcels are sold in numerical order. Bidding starts at the minimum (delinquent taxes plus fees). The high bidder wins and must pay immediately.
   
5. Payment: Buyers pay with check, credit/debit card or certified funds; cash is not accepted.
   
6. Deed: COSL issues a limited‑warranty deed. Purchasers must wait 90 days before making major improvements or reselling. They often need to file a quiet‑title action to obtain marketable title.

Expected returns

The return on investment depends on how much the winning bid is and what you can sell the property for later. Some places, especially near the Mississippi River or in Helena’s historic area, can go up a lot in value. Still, it’s important for investors to plan for legal issues, possible tear-downs, taxes, and insurance. Some land might be hard to access or have city debts attached, so doing good research can help avoid problems.

Importance of due diligence

Performing due diligence means:

• Researching property records: Check deeds, mortgages and liens at the county courthouse. Some liens (e.g., municipal assessments) may survive the tax sale.
  
• Verifying location: Use the assessor’s GIS or DataScoutPro link to locate the parcel. Ensure there is legal access.
  
• Inspecting the property: Visit the site or hire a local scout. Rural parcels may be wooded, flooded or improved structures may be dilapidated.
  
• Estimating costs: Consider demolition expenses, taxes and attorney fees for quiet‑title suits.
  

Skipping due diligence may lead to purchasing unusable or heavily encumbered property. Always consult a local real‑estate attorney before bidding.

Buying over‑the‑counter (post‑auction)

If a parcel doesn’t sell at the live auction, it can be bought online 30 days later. People who want to bid need to sign up online, confirm who they are, and place their bids. When someone wins a bid, they pay the first $100 with a card. The rest of the money is due within 10 business days. Buying directly is easier and often costs less. Just keep in mind that rules still apply, and it’s important to check everything before buying.

Conclusion

Phillips County lets people buy real estate through tax deeds. This area is rich in Delta culture and history. To succeed, you need to know some basic rules about tax sales. Pay attention to the auction season, minimum bids, deadlines for redemption, and the 90-day time for legal issues. 

It’s important to do research and plan your budget. Respecting local history matters too. If you go about it the right way, you can earn good returns and help bring neglected properties back to life.

Pro tips for Arkansas tax‑deed investing

• Arrive early: Registration opens 30 minutes before the auction. Arriving early ensures you receive a bidder card and can review last‑minute changes.
  
• Bring multiple payment methods: If one form of payment fails (e.g., a check is refused), you risk being banned from future auctions. Carry a back‑up cashier’s check and ensure credit card limits will cover your bids.
  
• Check for municipal liens: City liens, improvement district assessments and other charges may survive the tax sale. Contact the city clerk and improvement district office to verify outstanding obligations.
  
• Budget for quiet‑title action: Plan to hire an attorney to obtain marketable title. Costs vary by property value but may range from $1,000 to $3,000.
  
• Consider partnering locally: Non‑residents can partner with local investors or real‑estate professionals to handle inspections, mowing and repairs.

Phillips County, Arkansas Tax Sale – Investor FAQ

Q: Do I need to register?
Yes. Registration is required. You must register in person on the day of the sale, bring a valid photo ID, and receive a bidder card. Registration opens 30 minutes before the auction and closes when bidding starts.

Q: What payment methods are accepted?
Checks, credit or debit cards, cashier’s checks, and money orders. Cash is not accepted.

Q: Is there a redemption period after the sale?
No. Owners must redeem by 4:00 PM on the last business day before the sale. After July 1, 2023, sales are final and parcels sold at auction cannot be redeemed.

Q: How are the properties offered?
Parcels are sold in sale-number order. The minimum bid is the total of delinquent taxes, penalties, interest, and costs. The highest bid wins.

Q: What are the terms after winning a bid?
Winners get a limited warranty deed recorded in their name. There is a 90-day litigation period before making major changes. Buyers are responsible for quiet-title actions and for any liens that survive the sale.

Useful links

• Phillips County COLS
• State of Arkansas Commissioner of State Lands
• Arkansas offers a wealth of opportunities with Tax Deed Investing
• Let’s talk about Tax Deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Need a Hand?

Philips County tax-sale properties are available for review in our Auction Calendar. Explore upcoming listings and use our free resources to understand what to expect. If you’d like help building your strategy or reviewing your options, Book a call and talk to an expert.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded