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  Consent-General Government   # 11.       
Board of Supervisors Financial Services  
Meeting Date: 02/06/2018  
Brief Title:    Sale of Tax-defaulted Properties on April 27-30, 2018
From: Howard Newens, Chief Financial Officer, Department of Financial Services
Staff Contact: Howard Newens, Department of Financial Services, x8217
Supervisorial District Impact:

Subject
Authorize the sale of tax-defaulted properties at public auction via the Internet on April 27-30, 2018, for the stated minimum prices. (No general fund impact) (Newens)
Recommended Action
  1. 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 April 27-30, 2018.
     
  2. Approve the re-offer of the unsold parcel(s) at the end of the auction at a reduced minimum price, 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).
Strategic Plan Goal(s)
Operational Excellence
Reason for Recommended Action/Background
The County has 35 parcels (Att. A - List of Properties for Sale) on which the property taxes for the fiscal year 2011-12 and prior were unpaid as of June 30, 2017, remain unpaid as of 1/23/18 and are subject to the Tax Collector's power of sale. The total taxes, penalties, fees and costs on these parcels total $788,882. 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 October 2016.

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 April 27-30, 2018 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 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 till 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.

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $  
Amount budgeted for expenditure:    $  
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
$0
Attachments
Att. A. List of properties

Form Review
Inbox Reviewed By Date
County Counsel Hope Welton 01/31/2018 09:47 AM
Form Started By: hnewens Started On: 12/19/2017 11:16 AM
Final Approval Date: 01/31/2018

    

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