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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
]]]] 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 was6 issued to the countyas 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.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT 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