Consent 7.
Regular Board of Supervisors Meeting
County Treasurer
- Meeting Date:
- 02/12/2019
- Title:
- Abate Interest on Property Taxes on Parcel #203-27-016B
- Submitted By:
- Britt Hanson, County Attorney
- Department:
- County Treasurer
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
Britt Hanson
TITLE
of PRESENTER:
of PRESENTER:
Chief Civil Deputy, County Attorney
Docket Number (If applicable):
Mandated Function?:
Federal or State Mandate
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Authorize the County Treasurer to Abate All Interest on Property Tax for Parcel #203-27-016B for the Years 2003 Through the Present.
Background:
In 2003, the City of Willcox acquired property from a private party that it has since used to house its police station. The second half of the taxes on the property in the amount of $3,668.12 were not paid. However, because of a glitch in the Treasurer's AS400 system, the system did not pick up the transfer of the property to the City. As a result, the delinquency notices were sent to the former owner rather than the City. When the Treasurer switched from the AS400 to TROCS, the transfer was picked up and, in December 2018, the City received a delinquency notice. By this time, interest in the amount of $2,573.23 had accrued.
The City Manager then contacted the County Administrator requesting that the interest be removed due to the fact that the City had not received notice that taxes and interest were due and owing during the 15 year time period. The County Administrator then asked the County Attorney to confer with the Treasurer about the possibility of abating the interest.
After conferring, the County Attorney and Treasurer believe that abatement of the interest is warranted pursuant to A.R.S. 42-18103, which requires delinquency notices to be provided property owners at their last known address, and A.R.S. 42-18351, which sets for the circumstances authorizing abatement, including "an error or omission resulting in an improper imposition of a property tax" and "an event or circumstance that existed at the time of the levy and assessment, or that occurred afterwards, and that invalidates the lien of the property tax or the sale of the lien."
Pursuant to A.R.S. 42-18353, an abatement of property taxes must be approved by the Board of Supervisors. Accordingly, the Treasurer and County Attorney are requesting Board approval of this abatement.
The Willcox City Manager understands and agrees that the City owes and must pay the underlying property tax in the amount of $3,668.12.
The City Manager then contacted the County Administrator requesting that the interest be removed due to the fact that the City had not received notice that taxes and interest were due and owing during the 15 year time period. The County Administrator then asked the County Attorney to confer with the Treasurer about the possibility of abating the interest.
After conferring, the County Attorney and Treasurer believe that abatement of the interest is warranted pursuant to A.R.S. 42-18103, which requires delinquency notices to be provided property owners at their last known address, and A.R.S. 42-18351, which sets for the circumstances authorizing abatement, including "an error or omission resulting in an improper imposition of a property tax" and "an event or circumstance that existed at the time of the levy and assessment, or that occurred afterwards, and that invalidates the lien of the property tax or the sale of the lien."
Pursuant to A.R.S. 42-18353, an abatement of property taxes must be approved by the Board of Supervisors. Accordingly, the Treasurer and County Attorney are requesting Board approval of this abatement.
The Willcox City Manager understands and agrees that the City owes and must pay the underlying property tax in the amount of $3,668.12.
Department's Next Steps (if approved):
Notify the Treasurer, who will notify the City, of the removal and abatement of the interest. The Treasurer will also need to pay the person who purchased the taxes (the CP Holder) the full amount of the taxes and interest in order to eliminate the tax lien on the property.
Impact of NOT Approving/Alternatives:
The City will not receive a removal and abatement of the interest on the property taxes.
To BOS Staff: Document Disposition/Follow-Up:
Notify the Treasurer of the Board's decision.