Title
Approve an Agreement for the Treasurer-Tax Collector to sell to the City of Greenfield the Tax Defaulted Property described as APN 109-116-003-000 for the total purchase price of $41,330 and authorize the Chair of the Board of Supervisors to sign the Agreement and the Treasurer-Tax Collector’s office to issue the related Tax Deed to complete the transaction.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve an Agreement for the Treasurer-Tax Collector to sell to the City of Greenfield the Tax Defaulted Property described as APN 109-116-003-000 for the total purchase price of $41,330 and authorize the Chair of the Board of Supervisors to sign the Agreement and the Treasurer-Tax Collector to issue the related Tax Deed to complete the transaction.
SUMMARY:
Pursuant to California Revenue and Taxation Code 3691, the Tax Collector has the power to sell properties that have been tax-defaulted for five or more years in an effort to return these parcels to active property tax paying status. The California Revenue and Taxation Code Division 1, Part 6, Chapter 8 (§ 3771, et seq.) authorizes a taxing agency to acquire tax-defaulted property that is currently scheduled for a public auction by agreement following an objection to the sale provided the property will be utilized for a public use. Board of Supervisor approval is required to authorize the sale of tax-defaulted property to a municipality under this provision.
DISCUSSION:
On April 25, 2024, the City of Greenfield formally objected to the public auction sale of tax-defaulted property and agreed to acquire the subject property for a public right of way. The Agreement provides for payment of the established minimum bid and is sufficient to redeem the delinquent property taxes as required by Revenue & Taxation Code section 3793.1. The purchase price for the property under the Agreement is $40,500, plus $830 for the cost of giving notice of the Agreement as required by Revenue & Taxation Code section 3800 (the "Purchase Price”).
The City of Greenfield will be required to remit the full amount of the Purchase Price within fourteen (14) days from the effective date of the Agreement. Upon receipt of the Purchase Price the Tax Collector will execute and record a deed conveying title to the subject property to the City of Greenfield.
OTHER AGENCY INVOLVEMENT:
Following Board approval, the Agreement must be submitted to the California State Controller for approval. If the Agreement is approved by the California State Controller, the City of Greenfield is then required to remit the Purchase Price in accordance with the Agreement terms. The County of Monterey Auditor-Controller will then apportion the tax sale proceeds to the general fund and other taxing agencies. The City of Greenfield is a taxing agency as defined by California Revenue & Taxation Code section 121 but will not share in the distribution of the Purchase Price as provided by California Revenue & Taxation Code sections 3720 and 3791. County Counsel has reviewed this transaction and concurs with the recommendation.
FINANCING:
The County of Monterey and other taxing jurisdictions will proportionally share in the distribution of the property sale proceeds to the extent provided by the apportionment formula. The County of Monterey will also recover its costs related to the tax sale.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The revenue generated from the County of Monterey Treasurer-Tax Collector sale of Tax Defaulted Properties promotes and supports the following Board of Supervisors Strategic Initiatives:
__Economic Development
X 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 - Agreement to Purchase Tax-Defaulted Property
Attachment B - Resolution