Authorize the sale of tax-defaulted properties at public auction via the Internet on May 13-16, 2022, for the stated minimum prices and re-offer at listing prices at or above $1.00 for unsold properties from the initial auction. (No general fund impact) (Haynes)

1. Authorize the sale for the stated minimum prices of the tax-defaulted properties that are subject to the Tax Collector's power of sale and described on the attached list in accordance with Chapter 7 of Part 6 of Division 1 of the California Revenue and Taxation Code (RTC); and direct the Tax Collector as part of the Chief Financial Officer's responsibilities) to sell the properties described on this list at a public auction, via the Internet, on May 13-16, 2022; and
    
2. Authorize the Chief Financial Officer or designee to use discretion to re-offer the unsold parcel(s) in the attached list at the end of the auction at a reduced minimum price at or above $1.00, pursuant to RTC § 3698.5(c); and for any remaining unsold parcel(s) thereafter to be re-offered at a new sale within 90 days of the original sale date, pursuant to RTC § 3692(e), with the option to offer the remaining parcel(s) at a reduced minimum price, pursuant to RTC § 3698.5(c). If excess proceeds results from the sale, give notice to parties of interest, pursuant to RTC § 4376(a).

In Support of All Goals (Internal Departments Only)

The County has 7 parcels (Att. A - List of Properties for Sale) on which the property taxes for the fiscal year 2015-16 and prior were unpaid as of June 30, 2021, remain unpaid as of December 29, 2021, and are subject to the Tax Collector's power of sale. The total taxes, penalties, fees and costs on these parcels total $119,065.36 excluding advertising costs. Additional auction costs are estimated at $12,372.30 (10% of successful sale). 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. The County's last tax sale was held in October and December 2020 for earlier tax defaulted years.

Extensive efforts have been made by the Tax Collector's staff to contact property owners, arrange payment plans and notify them that their property will be sold unless the taxes, penalties and costs are paid in full. However, the County has not been able to collect on the parcels listed on the attached list of properties subject to sale. The planned tax sale is scheduled for May 13-16, 2022, and will be held via the Internet at http://bid4assets.com as was done in the past. Bid4Assets, Inc. is the Internet vendor of choice for many California counties and other government agencies nationwide. We anticipate that many properties will be redeemed (taxes paid in full) prior to the date of the sale so the actual number of properties sold via the Internet auction may be less than shown currently on the attached list. The minimum bid prices stated on the list were calculated in accordance with RTC § 3698.5 and California State Controller's guidelines.

Should the Board authorize the sale, the Tax Collector will proceed in accordance with procedures established by the State Controller in County Tax Sale Procedural Manual - Chapter 7 Tax Sales. Accordingly, next steps include forwarding a copy of the sale information to each taxing agency having the right to levy taxes and assessments on the property and to any nonprofit organization that has submitted a written request within one year prior to the next scheduled sale. This information affords the taxing agencies and nonprofit organizations sufficient time to review the properties identified for sale to determine whether there is a need to object to the sale of a particular property or properties. The State Controller will also need to be notified, as well as the parties of interest for each of the properties being offered for sale.

Exhaustive attempts have been made to contact all taxpayers concerned and will continue to be made until the day of the sale.

Not Applicable.