Title
a. Authorize the Treasurer-Tax Collector to auction 34 specified tax defaulted properties as set forth in Attachment A-County of Monterey Auction Listing at public auction via the internet in accordance with Revenue and Taxation Code section 3691 et. seq. or as a sealed bid sale pursuant to Division 1, Part 6, Chapter 7 of the Revenue and Taxation Code for at least the minimum bid.
b. Authorize the Treasurer-Tax Collector to reoffer any unsold properties at a reduced minimum bid, if deemed appropriate, within a 90-day period.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Authorize the Treasurer-Tax Collector to auction 34 specified tax defaulted properties as set forth in Attachment A-County of Monterey Auction Listing at public auction via the internet in accordance with Revenue and Taxation Code section 3691 et. seq. or as a sealed bid sale pursuant to Division 1, Part 6, Chapter 7 of the Revenue and Taxation Code for at least the minimum bid.
b. Authorize the Treasurer-Tax Collector to reoffer any unsold properties at a reduced minimum bid, if deemed appropriate, within a 90-day period.
SUMMARY:
In accordance with Sections 3694 and 3698 of the California Revenue and Taxation Code, the Tax Collector is required to provide notice to and receive approval from the Board of Supervisors to sell specified tax-defaulted properties, as set forth in Attachment A, at public auction or sealed bid sale for not less than the established minimum bid specified on each assessment. The requested action permits the Tax Collector to proceed, comply with State requirements for such sales, and provide the opportunity for the County to recover legitimate delinquent tax revenue.
DISCUSSION:
The collection of delinquent property taxes requires the Tax Collector to offer for sale property upon which taxes remain unpaid for a period in excess of five years. (California Revenue and Taxation Code Section 3691). The Tax Collector, after receiving authorization to sell from the Board of Supervisors, as laid out in Attachment B-Authorization to Sell Tax Defaulted Properties Resolution, must notify the California State Controller, all known lien holders of record, and the current property owner of the date of the impending sale and the minimum amount due to satisfy the property tax obligation.
If not redeemed, by paying all outstanding delinquent taxes, penalties, and costs before 5 p.m. the day before the sale is to begin, the Tax Collector will sell the property to the highest bidder. The monies, which are received from the sale of the properties, are deposited by the Tax Collector with the County Auditor, and a deed to the property is awarded to the successful purchaser. Excess proceeds, if any, are then distributed to legitimate claimants according to their priority. Any property not sold will be held over for future sale.
Pursuant to Sections 3698.5 and 3692(e) of the California Revenue and Taxation Code, the Tax Collector has determined the minimum price at which each of the properties may be offered for sale. Attachment A identifies each property and reflects the minimum bid necessary to satisfy the individual property delinquent taxes and assessments plus costs, or the minimum bid deemed appropriate given unique circumstances applicable to the subject property. As indicated above, if any individual property does not sell, the Tax Collector may statutorily reoffer that property at a reduced minimum bid within a 90-day period.
The auction of the property listed in Attachment A will be conducted through the use of an internet sales platform that has been successfully utilized in the past, with a reduced cost, greater outreach, and higher levels of success than a traditional in-person auction. The Tax Collector may also conduct a local sealed bid sale if deemed appropriate by the unique attributes of the property and/or where required by law.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller will provide for the apportionment of tax funds collected from the public auction or sealed bid sale, after the Tax Collector deposits monies to various receivable accounts. The Office of the County Counsel has reviewed and concurs with the recommendation as to form and legality.
FINANCING:
The County General Fund will benefit from this recommendation as the recommended process permits the recovery of overdue and delinquent property taxes that have not been recoverable. Typically, greater than fifty percent of delinquent properties pay the delinquent taxes prior to the sale, which results in revenue to the County, schools and other local jurisdictions who share in the tax apportionment formula.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The revenue generated from the County of Monterey Treasurer-Tax Collector Public Auction sale of Tax Defaulted Properties promotes and supports the following Board of Supervisors Strategic Initiatives:
__Economic Development
ü Administration
__Health & Human Services
__Infrastructure
__Public Safety
Prepared by: Arturo P. Perez, Management Analyst, x3083
Reviewed by: Jake Stroud, Assistant Treasurer-Tax Collector, x5828
Approved by: Mary A. Zeeb, Treasurer-Tax Collector, x5015
Attachments:
Attachment A: County of Monterey Auction Listing
Attachment B: Authorization to Sell Tax Defaulted Properties