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Regular-General Government # 39.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Authorize the sale of tax-defaulted properties at public auction via the Internet on October 23-26, 2020, for the stated minimum prices and re-offer at listing prices to any price at or above $1.00 for unsold properties from the initial auction. (No general fund impact) (Rinde) |
| Recommended Action |
- Authorize the sale for the stated minimum prices of the tax-defaulted properties that are subject to the Tax Collector's power of sale and described on the attached list in accordance with Chapter 7 of Part 6 of Division 1 of the California Revenue and Taxation Code; and direct the Tax Collector to sell the properties described on this list at a public auction, via the Internet on October 23-26, 2020; and
- Authorize the Chief Financial Officer to use discretion to re-offer the unsold parcel(s) in the attached list at the end of the auction at a reduced minimum price at or above $1.00, pursuant to California Revenue and Taxation Code section 3698.5(c); and for any remaining unsold parcels(s) thereafter to be re-offered at a new sale within 90 days of the original sale date, pursuant to California Revenue and Taxation Code section 3692(e), with the option to offer the remaining parcels at a reduced minimum price, pursuant to California Revenue and Taxation Code section 3698.5(c). If excess proceeds results from the sale, give notice to parties of interest, pursuant to California Revenue and Taxation Code section 3692(e).
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| Strategic Plan Goal(s) |
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In Support of All Goals (Internal Departments Only) |
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| Reason for Recommended Action/Background |
The County has 23 parcels (Att. A - List of Properties for Sale) on which the property taxes for the fiscal year 2014-15 and prior were unpaid as of June 30, 2020, remain unpaid as of July 21, 2020 and are subject to the Tax Collector's power of sale. The total taxes, penalties, fees and costs on these parcels total $461,096.74 excluding advertising costs. Additional auction costs are estimated at $47,632.70 (10% if successful sale). The purpose of offering tax-defaulted property at a tax sale is to collect the unpaid taxes and to return the property to a revenue-generating status. The County's last tax sale was held in June and July of 2020 for earlier tax defaulted years. This earlier timing is expected to be the future schedule for tax sales to increase timeliness and consistency.
Extensive efforts have been made by the Tax Collector's staff to contact property owners, arrange payment plans and notify them that their property will be sold unless the taxes, penalties and costs are paid in full. Many property owners have paid however, we have not been able to collect on the parcels listed on the attached list of properties subject to sale. The planned tax sale is scheduled for October 23-26, 2020 and will be held via the Internet at http://bid4assets.com as was done in the past. Bid4Assets, Inc. is the Internet vendor of choice for many California counties and other government agencies nationwide. We anticipate that many properties will be redeemed (taxes paid in full) prior to the date of the sale so the actual number of properties sold via the Internet auction may be significantly less than shown currently on the attached list. The minimum bid prices stated on the list were calculated in accordance with Revenue and Taxation Code Section 3698.5 and California State Controller's guidelines.
Should the Board authorize the sale, the Tax Collector will proceed in accordance with procedures established by the State Controller in County Tax Sale Procedural Manual - Chapter 7 Tax Sales. Accordingly, next steps include forwarding a copy of the sale information to each taxing agency having the right to levy taxes and assessments on the property and to any nonprofit organization that has submitted a written request within one year prior to the next scheduled sale. This information affords the taxing agencies and nonprofit organizations sufficient time to review the properties identified for sale to determine whether there is a need to object to the sale of a particular property or properties. The State Controller will also need to be notified, as well as the parties of interest for each of the properties being offered for sale. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Exhaustive attempts have been made to contact all taxpayers concerned and will continue to be made until the day of the sale. |
| Competitive Bid Process |
We have surveyed the membership of our state association of county tax collectors and determined that the selected contractor, Bid4Assets, is the only viable contractor for this internet sales of tax defaulted properties. Most larger counties conduct these sales with in-house staff.
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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