REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  November  7, 2017
CATEGORY:  Regular - General Government-7.

SUBJECT:

Approval to Sell Tax-Defaulted Property; 2018 Chapter 7 Tax Auction

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Lori J. Scott, Treasurer-Tax Collector-Public Administrator; 225-5511

STAFF REPORT APPROVED BY:  Lori J. Scott, Treasurer-Tax Collector-Public Administrator

RECOMMENDATION

Approve and authorize the Tax Collector to sell three tax-defaulted properties in a sealed bid tax auction on February 21, 2018 and up to 80 tax-defaulted properties during a public tax auction February 23, 2018 to the highest bidder, noting that any unsold sealed bid parcels will be included in the public tax auction, and any unsold parcels may be re-offered at a reduced minimum price the same day of the public auction or up to 90 days after the public auction.

SUMMARY

The Tax Collector has the authority to sell tax-defaulted property that is subject to the power of sale. Written approval of the Board of Supervisors is required to sell property at a public auction to the highest bidder at the time and place fixed for sale.

DISCUSSION

Upon the failure of property owners to pay property tax by the final due date, the Tax Collector sends the Assessee a notice of impending default followed by a declaration of default if the default is not cured. The default opens a five-year waiting period during which the delinquent taxes, penalties, and cost accumulate until redeemed. At the end of five years, if the taxes remain unredeemed, Revenue and Taxation Code section 3691 provides the Tax Collector the power to sell tax-defaulted parcels. Before the sale, the Tax Collector is required to notify the Assessee and any other parties of interest of the Tax Collector’s power and interest to sell the property for nonpayment of taxes. Only after all statutory requirements are met can the Tax Collector exercise his or her authority to sell the property. The sale must be conducted no sooner than 45 days after notification by registered mail of all ascertainable recorded parties of interest. Upon completion of the sale, the Tax Collector files reports with the County Recorder and the Assessor to address the transfer of title and the distribution of proceeds from the sale. The Tax Collector must also be prepared to submit, upon request, a report to the State Controller on the disposition of all parcels. For one year following the sale, the Tax Collector must respond to issues concerning challenges to the validity of the sale and excess proceeds claims. Attached is a list of parcels that will be offered for sale.

Pursuant to Revenue and Taxation Code section 3694 The Board may either approve or reject the proposed sale.  If the request is approved, the Board may not add items to the list of properties approved for sale or rescind its approval.

ALTERNATIVES

The Board may choose not to approve this request.  This is not recommended, as Revenue and Taxation Code section 3691 states the tax collector shall have the power to sell and shall attempt to sell in accordance with Section 3692 (oil, gas, and mineral rights and unusable parcels) all or any portion of tax-defaulted property that has not been redeemed.

OTHER AGENCY INVOLVEMENT

The County Administrative Office has reviewed the recommendation.

FINANCING

Associated costs are included in Fiscal Year 2017-18 budget.