If a municipality would like to bid on a tax sale, what is required?

• A. A resolution is required to designate a municipal official to bid
• B. Budget appropriations first
• C. Both A and B
• D. Neither

Answer: (C)

Participating in a tax sale requires formal authorization and available funds. The governing body must pass a resolution designating the specific municipal official who will bid, so there’s an accountable, legally recognized bidder acting for the municipality. At the same time, there must be budget appropriations approved to cover the bid and any related costs, ensuring there’s an authorized funding source for the expenditure. With both the designation and the appropriation in place, the municipality can bid in a compliant, properly funded manner.