what is a tax deed 
the term tax deed refers to a legal document granting ownership of a property to a government body when the owner fails to pay any associated property taxes a tax deed gives the government agency the authority to sell the property to collect the delinquent taxes once sold the property is then transferred to the purchaser these transactions are called tax deed sales and are usually held at auctions understanding a tax deeda property tax is any tax levied on a piece of real property taxes are assessed by the municipal government in which the property is located and paid by the owners of real estate there is an implied understanding that owners of real estate property are responsible for paying property tax assessments the taxes collected are used to fund various municipal programs such as water and sewer improvements law enforcement and fire service education road and highway construction public servants and other services property tax rates vary by jurisdiction 1