In Missouri, when property taxes are unpaid for three years, the county sells a lien at a public auction. Jefferson County holds this auction once a year. Winning bidders receive a Certificate of Purchase, which earns interest if the owner pays off their debt. Buyers can apply for ownership, called a Collector’s deed, only after a waiting period and required notices. This auction is called a “delinquent tax certificate sale.” Investors should remember they are buying a lien, not the property, unless it’s a third sale, which can lead to ownership in 90 days.

Jefferson County Tax Lien Important Details

Item	Details
Tax Sale Type	Redeemable tax lien certificates
Typical Sale Date & Time	Fourth Monday in August at 10 AM (Central Time)
Redemption Period	1 year for first and second sales; 90 days for third sale
Interest Rate	10 % per year on tax and cost portion; 8 % on subsequent taxes
Bid Procedure	Highest‐bidder sale, starting at taxes and costs
Deposit	No stated deposit; payment due the day of the sale
Location	Assembly Room, Administration Center, 729 Maple Street, Hillsboro, Missouri
Typical Number of Properties	Approximately 300 properties
Registration	Required – bidders must complete and notarize a bidder’s affidavit
Payment Forms	Cash, check, cashier’s check, money order, debit or credit card
Unsold Properties	Trustee property can be purchased any time

Fun Facts About Jefferson County

• Historic roots – Human habitation dates back to the Clovis culture 10 000 years ago, and prehistoric mastodon remains were found at the Mastodon State Historic Site.
• Rivers define its borders – The Mississippi River forms the eastern edge, while the Meramec and Big rivers mark the north and west.
• Population and economy – The county has around 228,000 residents and a median household income of roughly $80,000.
• Industry mix – Health care and social assistance, manufacturing, and retail trade employ the most residents.

Jefferson County has grown steadily and now ranks among Missouri’s ten largest counties. Local government and economic development organizations emphasize diversified industries and infrastructure to support business growth.

Attractions & Economic Highlights

• Natural and historic sites: The county is home to the Mastodon State Historic Site, where visitors can see ancient fossils and learn about early cultures. The Sandy Creek Covered Bridge is one of only four covered bridges left in Missouri. Washington State Park offers hiking, camping, and petroglyphs from the Mississippian culture.
• Transportation: Interstate 55 runs through the eastern side of Jefferson County, connecting it to the St. Louis metro. Highways 30, 141, and 21 provide north–south routes, and the county benefits from river, rail, and road freight via the Mississippi River and Union Pacific and BNSF rail lines.
• Economy: Health care, manufacturing, and retail are the largest employers. Ports on the Mississippi River support a growing logistics sector.
• Community: Residents enjoy small towns, riverfront restaurants in Kimmswick, outdoor recreation, and seasonal festivals. The county’s location near St. Louis provides big‑city amenities while preserving a rural atmosphere.

Why Jefferson County Is Ideal for Tax Lien Investors

• The county holds a single auction each year, giving investors plenty of time to prepare. Certificates earn a 10 % annual return on the tax and cost portion of the bid, and subsequent taxes accrue 8 % interest.
• Properties average around 300 listings each year, offering diverse opportunities.
• The redeemable lien system provides a low‑risk investment; owners typically redeem their property, paying investors the original bid plus interest. Investors only pursue a deed if redemption fails, which reduces carrying costs.
• Jefferson County’s growing population and robust industries support stable property values and a healthy real estate market.
• The county welcomes out‑of‑state and international investors (with a Missouri agent), expanding the bidder pool.

Auction Process for Jefferson County Tax Lien Sales

Jefferson County conducts its delinquent tax lien auction in person. Here is how the process works and what investors should expect.

How the Auction Works

Maximum Potential Returns and Expected Returns

Investors like Jefferson County for its reliable returns. Winning bids earn 10% interest on taxes and costs, while extra taxes earn 8% interest. Extra payments do not earn interest.

Most property owners pay their taxes within a year, so investors usually get their money back plus interest. If the owner doesn’t pay, the investor may receive a collector’s deed. Earnings then depend on the property’s market value and any costs incurred. Investors should check similar property sales to estimate their returns. Overall, Jefferson County offers good returns with lower risks than other real estate investments.

Open to All Investors / Foreign Investor Participation

In Missouri, anyone 18 or older can bid on tax lien sales if they’re up to date on property taxes and complete a form. Non-residents need a local agent to handle legal notices.

International investors like Jefferson County’s simple auction, held once a year. They can travel for it or send a local representative. The county offers good returns and low costs, making it appealing for U.S. real estate investments.

Importance of Due Diligence in Jefferson County Tax Lien Investing

Investors should never bid blindly. Performing due diligence reduces risks and helps determine appropriate bid amounts.

What Due Diligence Entails

• Research the property: Use the county’s GIS mapping site and tax search to view property boundaries, assessed values, and aerial imagery. Verify zoning, condition, and neighborhood.
• Check outstanding liens: The lien sold at auction is generally first in priority, but there could be federal liens or other encumbrances. Consider hiring a title company.
• Inspect on‑site: Drive by the property to look for structural damage, occupancy, or environmental issues. Remember, you cannot enter the property without permission.
• Review redemption history: Properties offered at second or third sales may have been previously redeemed. Look at prior sale results to gauge redemption likelihood.
• Budget for expenses: Include title search costs, mailing fees, and possible legal expenses when calculating returns.

Risks of Skipping Due Diligence

• Hidden liens or taxes: Unknown liabilities can erode profit or lead to legal challenges. Federal tax liens can survive the sale.
• Poor property condition: A structure may be dilapidated, occupied, or require costly repairs, reducing profitability.
• Title issues: Failure to follow Missouri’s strict notice requirements can void the deed.
• Low redemption: If the property does not redeem and the market value is low, you could end up owning a problem property.

Buying Over‑the‑Counter (OTC) Liens in Jefferson County

Properties that fail to sell at three consecutive auctions become trustee properties. Investors may purchase these parcels year‑round through the county’s Trustee office.

How to Purchase OTC Liens/Deeds

• Obtain the list: The county posts a list of trustee properties with the amount of taxes owed.
• Submit a bid: Offer at least the total taxes, fees, and costs owed. If the bid meets or exceeds the amount due, the Trustee may finalize the sale and issue a Trustee’s Deed.
• Approval process: Bids below the total owed may be rejected or referred to the County Council, after which surrounding landowners may submit competing bids.
• Contact the Trustee: Email the Trustee’s office at [email protected] for the total amount due and other requirements. The trustee does not guarantee a clear title; investors should consult an attorney.

Benefits of OTC Purchases

• Flexible timing: Unlike the annual sale, OTC properties can be bought at any time of year, allowing investors to act when convenient.
• No bidding competition: Often, there are fewer interested buyers, so investors may acquire property at lower prices.
• Direct deed: Trustee properties are deeded immediately (no redemption period), although title insurance is not guaranteed, and legal due diligence is crucial.

Why Jefferson County Is a Top Choice for Tax Lien Investors

Economic and Tax Advantages

• Strong economic base: Industries such as health care, manufacturing, and retail provide stable employment.
• Strategic transportation: Interstate 55, multiple highways, rail lines, and port facilities enhance commerce and make property attractive to businesses.
• Growing population: A rising population supports housing demand and helps maintain property values.
• Predictable returns: State law sets interest rates, ensuring consistent yields of 10 % and 8 %.

Real Estate Market Overview

Jefferson County’s real estate market features suburban growth and affordable rural homes. In 2023, the median home value was around $218,800, with over 80% homeownership. Many homes are near St. Louis, appealing for rental or resale. Investors should watch local trends, as prices vary by town, especially in De Soto, Festus, and Arnold, to find good deals and avoid overbidding.

Conclusion

Jefferson County, Missouri, holds a tax lien sale in August for delinquent properties. Registration requires a notarized affidavit, but there’s no deposit, and payment methods are flexible. Investors earn 10% interest on bids and 8% on additional taxes.

With a strong economy and growing population, Jefferson County offers good returns with low risk. Investors should research properties, budget for extra costs, and follow local rules. With careful planning, it can be a great investment opportunity..

Pro Tips for Jefferson County Tax Lien Investors

• Start early: Obtain the property list when it is posted in June and perform due diligence well before the August sale. Research comparable sales and neighborhood conditions.
• Complete your affidavit promptly: Notarize the bidder’s affidavit and secure your bid number the week before the sale to avoid the rush on auction day.
• Use GIS tools: The county offers an online GIS map. Cross‑check property boundaries, road access and surrounding uses.
• Plan your budget: Set a maximum bid based on taxes owed, interest returns, anticipated redemption and potential resale value. Include title search and mailing costs.
• Network locally: Connect with local realtors, attorneys and title companies. They can provide insights on market trends and help with redemption notice requirements.

Frequently Asked Questions (FAQs)

Useful Links

• Jefferson County Land Sale page – official details, forms, and property lists
• Land Sale FAQs – registration and bidding rules
• Trustee Properties – information on over‑the‑counter purchases
• Missouri tax sale statutes – section 140.405 and related laws
• County GIS property viewer – research parcels
• County Collector contact – phone 636‑797‑5406 and email [email protected].

Need a Hand?

Navigating Jefferson County’s tax lien sale can feel complex, but you don’t have to go it alone. Our team offers free resources, including an auction calendar and checklists, to help you prepare. If you’d like personalized guidance, book a call with one of our tax lien specialists. We can walk you through due diligence, bidding strategies, and post‑auction steps so you invest with confidence. Learn more, explore our free resources, or book a call to get started today.

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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