Agenda Item

AGENDA STAFF REPORT

 

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ASR Control 19-001295

 

MEETING DATE:

12/17/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Treasurer-Tax Collector†† (Approved)

Department contact person(s):

Shari L. Freidenrich (714) 834-7625

 

 

Jennifer Burkhart (714) 834-6143

 

 

Subject: Public Auction #1396 of Properties with Delinquent Property Taxes for 5+ Years

 

††††† ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Consent Calendar

 

 

3 Votes Board Majority

 

 

 

††† Budgeted: Yes

Current Year Cost: $4,500

Annual Cost: N/A

 

 

 

††† Staffing Impact:

No

# of Positions:

Sole Source: N/A

††† Current Fiscal Year Revenue: $4,500

Funding Source: See Financial Impact Section

County Audit in last 3 years: No

 

 

††† Prior Board Action: 06/25/2019 #11, 12/18/2018 #3, 11/14/2017 #5, 11/08/2016 #2

 

RECOMMENDED ACTION(S):

 

 

1.

Adopt Resolution approving the public auction of certain tax-defaulted real properties that are subject to the power of sale for nonpayment of delinquent taxes at a minimum price to recover taxes and fees and authorizing the Treasurer-Tax Collector to auction these properties at a minimum price set by the Treasurer-Tax Collector if an acceptable bid is not received.

 

2.

Direct the Clerk of the Board to transmit a certified copy of the Resolution to the Treasurer-Tax Collector within five days from the date of its adoption in accordance with Revenue and Taxation Code Section 3699.

 

 

 

 

 

SUMMARY:

 

Adoption of the Resolution will allow the Treasurer-Tax Collector to recover the property taxes that have been unpaid for over five years by selling the tax-defaulted real properties at a public auction scheduled for March 18, 2020.

 

 

 

BACKGROUND INFORMATION:

 

Revenue and Taxation (R&T) Code Section 3694 requires public auction sales of tax-defaulted properties to be approved by the Board of Supervisors (Board). Also, pursuant to R&T Code Sections 3692(e) and 3698, in order to have a public auction approved by the Board, the Treasurer-Tax Collector (Treasurer) is required to submit a notice to the Board with the following information:

 

a)

Any property remaining unsold may be offered within a 90-day period and any new parties of interest shall be notified in accordance with Section 3701;

b)

The Treasurer's intent to make a sale and the type of sale;

c)

A description of the property to be sold; and

d)

The minimum price at which it is proposed to sell the property

 

The Treasurer intends to sell certain tax-defaulted real properties that have at least one installment of delinquent property taxes over five years old. The sale of these properties will be conducted at a public auction scheduled for March 18, 2020. Pursuant to R&T Code Sections 3691 through 3731.1, a list of the properties to be sold, including a description of the property and the minimum price that each property is proposed to be sold, is set forth in Exhibit 1 of the Resolution. The properties consist of timeshare intervals and have been tax-defaulted for over five years. R&T Code Section 3698.5 requires that the minimum bid be not less than the total amount necessary to redeem (e.g., the sum of defaulted taxes, delinquent penalties and costs, redemption penalties and a redemption fee) plus the cost of the public auction. The properties consist of both improved and unimproved land. The public auction will not include any timeshare intervals with at least one installment of delinquent property taxes, as the Treasurer expects to come back later to request to sell these using an online public auction.

 

In addition, at least 30 days before publication of the tax auction, the Treasurer will forward a notice of the intended public auction to each taxing agency having the right to levy taxes or assessments and to each non-profit organization that has submitted a written request to the Treasurer for notification of intended sales. The Treasurer has not received any written requests from non-profit organizations to receive notice within the required time fame.

 

The Treasurerís goal is to continue to reduce the number of parcels being subject to the sale and sold at public auction by contacting the delinquent owners earlier. Over the past years, the Treasurer has been successful in reducing the number of parcels sold as shown below.

 

Auction Date

Auction Type

Number of Parcels Approved by Board

Number of Parcels Sold at Auction

September 18, 2019

Timeshare Intervals

115

36

March 20, 2019

Real Property

55

Auction Cancelled

March 21, 2018

Real Property

52

Auction Cancelled

March 15, 2017

Real Property

61

4

January 17-18, 2017 and re-offer on April 18-19, 2017

Timeshare Intervals

400

107

March 16, 2016

Real Property

65

14

March 5, 2015

Real Property

85

7

 

 

The properties not auctioned were either paid in full prior to the auction date or removed from the auction list for various reasons such as bankruptcy, deceased owner(s) or other potential notification issues.

 

Prior Board Actions:

On June 25, 2019, the Board approved the sale of 115 timeshare interval properties through an internet auction sale. On December 18, 2018, the Board approved the sale of 55 properties. On November 14, 2017, the Board approved the sale of 52 properties. On November 8, 2016, the Board approved the sale of 61 properties.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for conducting the public auction of tax-defaulted properties are included in Budget Control 1900 in the Treasurerís FY 2019-20 Budget and are 100 percent offset through various fees charged to the winning bidder as part of the final purchase price for each property. Therefore, based on an estimate that 10 parcels may be sold at the public auction, the estimated cost of conducting the public auction is $4,500 or $450 per parcel, and related revenue is estimated at $4,500.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Revenue and Taxation Code Sections 3691 through 3731.1 and 4675
Attachment B - County Resolution 97-237
Attachment C - County Resolution with List of Properties