Consent-General Government # 24.
Board of Supervisors
Financial Services
- Meeting Date:
- 12/05/2023
- Brief Title
- Sale of Tax Defaulted Properties on May 17-20, 2024
From:
Tom Haynes, Chief Financial Officer, Department of Financial Services
Staff Contact:
Sou Xiong, Treasury and Revenue Manager, Department of Financial Services, x8212
Supervisorial District Impact:
Countywide
Subject
Authorize the sale of tax-defaulted properties at public auction via the internet on May 17-20, 2024, 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/Xiong)
Recommended Action
- 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 17-20, 2024; and
- 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 parcels(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).
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
The tax collector is required to offer tax-defaulted property at a tax sale to collect the unpaid taxes and to return the property to a revenue-generating status. Prior to proceeding with the tax sale, the Board of Supervisors must approve the list of properties to be included in the sale. See Revenue & Taxation Code Section 3794.3.
The County currently has 13 parcels on which the property taxes for the fiscal year 2017-18 and prior were unpaid as of June 30, 2023, remain unpaid as of November 2, 2023, and are subject to the Tax Collector's power of sale. (Att. A - List of Properties for Sale.) The total taxes, penalties, fees, and costs on these parcels total $449,968.04, excluding advertising costs. Additional auction costs are estimated at $45,832.84 (10% of successful sale). The County's last tax sale was last scheduled for May 2023, but all delinquencies were paid before the sale occurred.
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 13 parcels listed on the attached list. The planned tax sale is scheduled for May 17-20, 2024, 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. Like last year, the Tax Collector anticipates 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 County currently has 13 parcels on which the property taxes for the fiscal year 2017-18 and prior were unpaid as of June 30, 2023, remain unpaid as of November 2, 2023, and are subject to the Tax Collector's power of sale. (Att. A - List of Properties for Sale.) The total taxes, penalties, fees, and costs on these parcels total $449,968.04, excluding advertising costs. Additional auction costs are estimated at $45,832.84 (10% of successful sale). The County's last tax sale was last scheduled for May 2023, but all delinquencies were paid before the sale occurred.
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 13 parcels listed on the attached list. The planned tax sale is scheduled for May 17-20, 2024, 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. Like last year, the Tax Collector anticipates 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.
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. The minimum bid prices stated on the list were calculated in accordance with RTC § 3698.5 and the California State Controller's guidelines. 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.
Collaborations (including Board advisory groups and external partner agencies)
Exhaustive attempts have been made to contact all taxpayers concerned and will continue to be made until the day of the sale.
Competitive Bid Process/Vendor Performance
Not applicable.
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- General Fund
- $0
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Tom Haynes | 11/22/2023 10:47 AM |
| Eric May | Eric May | 11/27/2023 09:50 AM |
- Form Started By:
- sxiong
- Started On:
- 10/03/2023 08:55 AM
- Final Approval Date:
- 11/28/2023