Title
a. Authorize the Treasurer-Tax Collector to offer for sale 36 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:
a. Authorize the Treasurer-Tax Collector to offer for sale 36 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:
Sections 3694 and 3698 of the California Revenue and Taxation Code require the Treasurer-Tax Collector (TTC) to obtain Board of Supervisors authorization prior to selling tax-defaulted properties. Approval of the recommended action will allow the TTC to proceed with the sale of 36 specified tax-defaulted properties identified in Attachment A, comply with all statutory notice and sale requirements, and provide an opportunity for the County to recover delinquent property tax revenue.
DISCUSSION:
Under California Revenue and Taxation Code section 3691, properties on which property taxes have remained unpaid for a period exceeding five years are subject to sale by the TTC. Following authorization by the Board of Supervisors, as reflected in Attachment B - Authorization to Sell Tax-Defaulted Properties, the TTC is required to provide notice of the impending sale to the State Controller, all known lien holders of record, and the current property owner, including the date of sale and the minimum amount required to redeem the property.
Property owners retain the right to redeem their property by paying all delinquent taxes, penalties, and costs in full no later than 5:00 p.m. on the business day prior to the commencement of the sale. If a property is not redeemed, it will be sold to the highest qualified bidder. Sale proceeds are deposited with the County Auditor-Controller, and a tax deed is issued to the successful purchaser. Any excess proceeds remaining after satisfaction of taxes, assessments, penalties, and costs are distributed to eligible claimants in accordance with statutory priorities. Properties that are not sold may be held for future sale.
Pursuant to Revenue and Taxation Code sections 3698.5 and 3692(e), the TTC has established a minimum bid for each property listed in Attachment A. The minimum bid reflects either the amount necessary to satisfy delinquent taxes, assessments, and associated costs, or a minimum price deemed appropriate based on property-specific circumstances. If a property does not sell at the initial offering, the TTC is authorized by statute to reoffer the property at a reduced minimum bid within a 90-day period.
The proposed sale will primarily be conducted using an established internet-based auction platform, which has been successfully utilized in prior County tax sales and has demonstrated reduced costs, broader market exposure, and improved sale outcomes compared to traditional in-person auctions. Where warranted by property characteristics or statutory requirements, the TTC may alternatively conduct a local sealed bid sale.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS: [List agencies/departments that collaborated or participated in the review or development of the item. Provide recent actions by Standing Committee(s) related to the item (if applicable).]
The Auditor-Controller will apportion proceeds received from the public auction or sealed bid sale in accordance with applicable tax apportionment formulas after deposit by the TTC. County Counsel has reviewed this item and concurs as to form and legality.
FINANCING:
Approval of the recommended action is expected to benefit the County General Fund by facilitating the recovery of delinquent property taxes. Historically, more than 50% of properties scheduled for sale are redeemed prior to auction, resulting in direct revenue to the County, schools, and other local jurisdictions that share in property tax revenues.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
____ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
If does not fall under any of the above Board of Supervisors Strategic Plan Goals (Other):
_X_ Administrative
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 by conveying the property to another owner.
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Arturo P. Perez, Management Analyst, x3083
Approved by: Jake Stroud, Treasurer-Tax Collector, x5015
Attachments:
Attachment A - County of Monterey Auction Listing
Attachment B - Authorization to Sell Tax-Defaulted Properties