2005 Legislation
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HOUSE BILL NO. 307 – Property, county sale, tax deed

HOUSE BILL NO. 307

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H0307...............................................by REVENUE AND TAXATION
SALE OF PROPERTY - Amends existing law to provide for apportionment of
proceeds from sale of property acquired by tax deed to include remittance
to the record owner or owners or any party in interest upon whom a notice
of a sale was served in compliance with law of any amounts remaining after
the deduction of the delinquency, late charges, accrued interests, costs,
fees and other costs of transacting the sale; to provide a fee to the
county if the record owner or owners had made no reasonable attempt to
satisfy the delinquency; and to provide for distribution of funds if no
claim is received within three years after the date of sale of the
property.
                                                                        
03/08    House intro - 1st rdg - to printing
03/09    Rpt prt - to Rev/Tax
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
    Rls susp - FAILED - 32-36-2
      AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Block,
      Clark, Collins, Crow, Deal, Denney, Ellsworth, Field(18), Field(23),
      Hart, Harwood, Henderson, Lake, Loertscher, Mathews, McGeachin,
      McKague, Moyle, Nielsen, Roberts, Rydalch, Sali, Schaefer,
      Shepherd(8), Smith(24), Wood
      NAYS -- Anderson, Bell, Bilbao, Black, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Edmunson, Eskridge, Garrett, Henbest, Jaquet, Kemp,
      LeFavour, Martinez, Miller, Mitchell, Nonini, Pasley-Stuart, Pence,
      Raybould, Ring, Ringo, Rusche, Sayler, Shepherd(2), Shirley, Skippen,
      Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills
      Absent and excused -- Jones, Mr. Speaker
    Floor Sponsor - Hart
    Filed in Office of the Chief Clerk

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 307
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SALE OF PROPERTY ACQUIRED BY TAX DEED;  AMENDING  SECTION  31-808,
  3        IDAHO  CODE,  TO   PROVIDE  FOR APPORTIONMENT OF PROCEEDS FROM THE SALE OF
  4        PROPERTY ACQUIRED BY TAX DEED TO INCLUDE A REMITTANCE TO THE RECORD  OWNER
  5        OR OWNERS OR ANY PARTY IN INTEREST UPON WHOM A NOTICE OF A SALE WAS SERVED
  6        IN  COMPLIANCE  WITH  LAW  OF ANY AMOUNTS REMAINING AFTER DEDUCTION OF THE
  7        DELINQUENCY, LATE CHARGES, ACCRUED INTEREST, COSTS, FEES AND THE COSTS  OF
  8        TRANSACTING  THE  SALE, TO PROVIDE A FEE TO THE COUNTY IF THE RECORD OWNER
  9        OR OWNERS HAD MADE NO REASONABLE ATTEMPT TO SATISFY THE  DELINQUENCY,  AND
 10        TO  PROVIDE FOR DISTRIBUTION OF FUNDS IF NO CLAIM IS RECEIVED WITHIN THREE
 11        YEARS AFTER THE DATE OF SALE OF THE PROPERTY.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That Section 31-808, Idaho Code, be, and the same  is  hereby
 14    amended to read as follows:
                                                                        
 15        31-808.  SALE  OF COUNTY PROPERTY -- GENERAL PROCEDURE -- SALE OF PROPERTY
 16    ACQUIRED THROUGH TAX DEED -- PROCEDURE AFTER ATTEMPTED AUCTION -- EXCHANGE  OF
 17    COUNTY PROPERTY -- SALE OF CERTAIN ODD-LOT PROPERTY -- SALE, EXCHANGE OR DONA-
 18    TION  OF  PROPERTY TO OTHER UNITS OF GOVERNMENT. (1) A board of county commis-
 19    sioners shall have the power and authority to sell or offer for sale at public
 20    auction any real or personal property belonging to the  county  not  necessary
 21    for  its  use. However, personal property not exceeding two hundred fifty dol-
 22    lars ($250) in value may be sold at private sale without notice or public auc-
 23    tion. Prior to offering the property for sale, the board of county commission-
 24    ers shall advertise notice of the auction in a newspaper, as defined  in  sec-
 25    tion  60-106,  Idaho  Code, either published in the county or having a general
 26    circulation in the county, not less than ten (10) calendar days prior  to  the
 27    auction.  If  the  property to be sold is real property, the notice to be pub-
 28    lished shall contain the legal description as well as the  street  address  of
 29    the  property.  If  the property is outside the corporate limits of a city and
 30    does not have a street address, then the description shall  also  contain  the
 31    distance  and  direction of the location of the real property from the closest
 32    city. If the property to be sold is acquired by tax deed, the notice  required
 33    to  be  published  shall include, next to the description of the property, the
 34    name of the taxpayer as it appears in  the  delinquent  tax  certificate  upon
 35    which  the tax deed was issued. The property shall be sold to the highest bid-
 36    der. However, the board of county  commissioners  may  reserve  the  right  to
 37    reject  any  and  all bids and shall have discretionary authority to reject or
 38    accept any bid which may be made for an amount less than the total  amount  of
 39    all  delinquent taxes, late charges, costs and interest which may have accrued
 40    against any property so offered for sale, including the  amount  specified  in
 41    the tax deed to the county.
 42        (2)  Proceeds  from  the  sale of county property not acquired by tax deed
 43    shall be paid into the county treasury for the general use of the county.   If
                                                                        
                                           2
                                                                        
  1    the  property to be sold has been acquired by tax deed, pursuant to the provi-
  2    sions of chapter 10, title 63, Idaho Code, the proceeds from the  sale,  after
  3    reimbursement  to  the  county  for the cost of advertising and sale, shall be
  4    apportioned to the taxing districts in which the property is situated  accord-
  5    ing to the levy applied to the year of delinquency upon which the tax deed was
  6    issued to the county as provided in this subsection.
  7        The  amount  paid  for  the property  which remains after deduction of any
  8    delinquency, late charges, accrued interest, costs, fees and  other  costs  of
  9    transacting  the  sale,  including  payment  of  any perfected liens, shall be
 10    remitted to the record owner or owners or any party in interest  upon  whom  a
 11    notice  of  pending  tax  deed  was served in compliance with section 63-1005,
 12    Idaho Code. The portion retained by the county shall be paid into  the  county
 13    treasury by the tax collector, upon the certificate of the county auditor. The
 14    portion  retained  by  the county which represents the cost of the transaction
 15    shall be calculated using the average hourly operating cost of each department
 16    affected. The portion of receipts representing the delinquency,  late  charges
 17    and  accrued interest shall be apportioned among the several state, county and
 18    taxing district accounts in the same manner, as provided by law for the appor-
 19    tionment of property taxes.  If  the  record  owner  has  made  no  reasonable
 20    attempt  to  satisfy  the delinquency or to sell the property prior to the tax
 21    sale, the county shall be entitled to charge a three percent (3%)  penalty  on
 22    the gross sale amount which shall be paid to the county treasury. In the event
 23    no  claim  for the excess is received by the county treasurer within three (3)
 24    years after the date of sale, he or she shall, at the expiration of the  three
 25    (3) year period, deposit such excess in the current expense fund of the county
 26    which shall extinguish all claims by any owner to the excess funds.
 27        (3)  Any  property  sold  may  be  carried on a recorded contract with the
 28    county for a term not to exceed ten (10) years and at an interest rate not  to
 29    exceed the rate of interest specified in section 28-22-104(1), Idaho Code. The
 30    board  of county commissioners shall have the authority to cancel any contract
 31    if the purchaser fails to comply with any of the terms of the contract and the
 32    county shall retain all payments made on the contract. The title to all  prop-
 33    erty  sold  on contract shall be retained in the name of the county until full
 34    payment has been made by  the  purchaser.  However,  the  purchaser  shall  be
 35    responsible  for  payment  of all property taxes during the period of the con-
 36    tract.
 37        (4)  Any sale of property by the county shall vest in the purchaser all of
 38    the right, title and interest of the county in  the  property,  including  all
 39    delinquent  taxes  which  have become a lien on the property since the date of
 40    issue of the tax deed, if any.
 41        (5)  In addition to the purchase price, a purchaser  of  county  property,
 42    including  property  acquired  by tax deed, shall pay all fees required by law
 43    for the transfer of property. No deed for any real estate  purchased  pursuant
 44    to the provisions of this section shall be delivered to a purchaser until such
 45    deed has been recorded in the county making the sale.
 46        (6)  Should  the  county be unable to sell at a public auction any real or
 47    personal property belonging to the county, including property acquired by  tax
 48    deed,  it  may  sell  the property without further notice by public or private
 49    sale upon such terms and conditions as the county deems  necessary.  Distribu-
 50    tion  of  the proceeds of sale shall be as set forth in subsection (2) of this
 51    section.
 52        (7)  The board of county commissioners may at its discretion, when in  the
 53    county's  best  interest, exchange and do all things necessary to exchange any
 54    of the real property now or hereafter held and owned by the  county  for  real
 55    property  of  equal value, public or private, to consolidate county real prop-
                                                                        
                                           3
                                                                        
  1    erty or aid the county in the control and management or  use  of  county  real
  2    property.
  3        (8)  The board of county commissioners may, by resolution, declare certain
  4    parcels of real property as odd-lot property, all or portions of which are not
  5    needed for public purposes and are excess to the needs of the county. For pur-
  6    poses  of  this  subsection, odd-lot property is defined as that property that
  7    has an irregular shape or is a remnant and has value primarily to an adjoining
  8    property owner. Odd-lot property may be sold to an adjacent property owner for
  9    fair market value that is estimated by a land appraiser licensed  to  appraise
 10    property in the state of Idaho. If, after thirty (30) days' written notice, an
 11    adjoining  property  owner  or  owners  do  not desire to purchase the odd-lot
 12    property, the board of county commissioners may sell the property to any other
 13    interested party for not less than the appraised value. When a sale of odd-lot
 14    property is agreed to, a public advertisement of the  pending  sale  shall  be
 15    published  in one (1) edition of the newspaper as defined in subsection (1) of
 16    this section, and the public shall have fifteen (15) days  to  object  to  the
 17    sale in writing. The board of county commissioners shall make the final deter-
 18    mination regarding the sale of odd-lot property in an open meeting.
 19        (9)  In  addition  to any other powers granted by law, the board of county
 20    commissioners may at their discretion, grant to or exchange with  the  federal
 21    government,  the  state of Idaho, any political subdivision or taxing district
 22    of the state of Idaho or any local historical society which is incorporated as
 23    an Idaho nonprofit corporation which operates primarily in the county or main-
 24    tains a museum in the county, with or without compensation, any real  or  per-
 25    sonal  property  or  any  interest  in  such  property  owned by the county or
 26    acquired by tax deed, after adoption of a resolution by the  board  of  county
 27    commissioners  that  the grant or exchange of property is in the public inter-
 28    est.  Notice of such grant or exchange shall be as provided in subsection  (1)
 29    of  this  section  and  the decision may be made at any regularly or specially
 30    scheduled meeting of the board of  county  commissioners.  The  execution  and
 31    delivery by the county of the deed conveying an interest in the property shall
 32    operate  to  discharge  and cancel all levies, liens and taxes made or created
 33    for the benefit of the state, county or any  other  political  subdivision  or
 34    taxing  district  and to cancel all titles or claims of title including claims
 35    of redemption to such real property asserted or existing at the time  of  such
 36    conveyance. However, if the property conveyed is subject to a lien for one (1)
 37    or  more  unsatisfied  special  assessments, the lien shall continue until all
 38    special assessments have been paid in full. At no time shall a lien for a spe-
 39    cial assessment be extinguished prior to such special assessment  having  been
 40    paid  in  full.  Any  property conveyed to any local historical society by the
 41    county shall revert to the county when the property is no longer utilized  for
 42    the purposes for which it was conveyed.
 43        (10) When the county has title to mineral rights severed from the property
 44    to  which  they attach, and the mineral rights have value of less than twenty-
 45    five dollars ($25.00) per acre, the board of county commissioners may  act  to
 46    return the mineral rights to the land from which they were severed in the fol-
 47    lowing  manner:  the  proposed  action  must appear on the agenda of a regular
 48    meeting of the board of county commissioners;  and  the  motion  to  make  the
 49    return must be adopted unanimously by the board voting in open meeting.

Statement of Purpose / Fiscal Impact


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                    STATEMENT  OF  PURPOSE
                              
                          RS 15075
  
  The purpose of this legislation is to provide for the
  distribution of the proceeds of a tax deed sale that is
  equitable and in conformance with common sense and fair
  play.  As the law currently stands, when a property is sold
  at tax deed, 100 percent of the proceeds are distributed
  among the various taxing districts associated with the
  property.  None of the proceeds are distributed to the
  record owner and the record owner loses his entire equity. 
  This bill would provide that after the various taxing
  districts are made whole for any delinquent taxes and fees,
  and after any perfected liens have been paid, that the
  record owner would receive any funds that remain.
  The legislation also provides for a 3 percent penalty
  on the gross sale amount to be paid to the county if the
  record owner had made no reasonable attempt to cure the
  delinquency or to sell the property prior to the tax deed
  sale.  It also provides that the remaining proceeds shall be
  distributed to the county if no claim has been made for the
  funds within a 3 year period of the sale. 

  
                        FISCAL NOTE

  There is no fiscal impact to the state general fund.
  

  Contact
  Name:   Rep. Phil Hart, Rep. Tom Loertscher
  Phone:  (208) 332-1000
  
  STATEMENT OF PURPOSE/FISCAL IMPACT                H 307