I have three questions that pertain to an occupied tax deed I'm considering in Jeff-Bess in order to flip the deed either to the taxpayer or another investor. 

The tax payer for the property is actually the tax return that reports the activity of the property.  

In that kind of model, losing 2-5% of income because of non-payers means everyone else in the system (all the ratepayers, tax payers, etc) must suffer because there's no magic pot of money to suck it up for these people.

@Sammy WeinsteinThe custodian may be required to withhold some percentage in federal withholding when they make the distribution to you.Ultimately, you will be required to pay the amount when you file your return or extension.However, you should consult with your accountant if you need to make estimated tax payment in the quarter that you take the distribution.

Or the redeveloped homes that tax payers footed the bill for after Sandy, Harvey, & Irma? 

The grant is taxpayer money.

If he didn’t, you’ll need some @Dave Foster advice because the selling tax payer has to be the buying tax payer and any amount of debt he had he has to get again.  

The idea is that you're being thanked for your service by the generous taxpayers of the nation who can't have you limping around homeless making them feel bad about not supporting the troops. 

When asking for a taxpayer to be served in an ejectement (Jefferson County), is one method of service (certified mail or sheriff) better than another?

While not explicitly stated in the tax code that I am aware of, this has gone to court several times in the favor of the taxpayer.