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S1025..........................................................by JORGENSON
TAX DEEDS - 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 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 have 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.
01/18 Senate intro - 1st rdg - to printing
01/19 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1025
BY JORGENSON
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 HAVE 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,
11 an 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
RS 16679
Relating to sale of property acquired by tax deed; amending
Section 31-808, Idaho Code, to provide for apportionment of
proceeds from the sale of property acquired by tax deed to
include a 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 deduction of the
delinquency, late charges, accrued interest, costs, fees and the
costs of transacting the sale, to provide a fee to the county if
the record owner or owners have 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.
FISCAL NOTE
None
Contact
Name: Senator Mike Jorgenson
Phone: (209) 332-1344
Representative Phil Hart (208)332-1205
STATEMENT OF PURPOSE/FISCAL NOTE S 1025