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H0691...............................................by REVENUE AND TAXATION
PROPERTY - TAX DEEDS - Amends existing law to revise provisions for
disposal of property acquired by a county by tax deed; to revise procedures
for notice to all parties in interest; and to provide procedures for
holding and disposing of excess funds.
03/27 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
03/28 2nd rdg - to 3rd rdg
Rls susp - PASSED - 66-0-4
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, Kren, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, Mortimer, Moyle, Nielsen,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts,
Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Thomas, Trail, Vander Woude, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- King, Labrador, McGeachin, Wills
Floor Sponsor - Hart
Title apvd - to Senate
03/31 Senate intro - 1st rdg - to Loc Gov
04/01 Rpt out - rec d/p - to 2nd rdg
04/02 2nd rdg - to 3rd rdg
Rls susp - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon(Gannon),
Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai(Sagness), McGee, McKague, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- McKenzie
Floor Sponsor - Jorgenson
Title apvd - to House
04/02 To enrol/Rpt enrol - Sp/Pres signed
04/03 To Governor
04/09 Governor signed
Session Law Chapter 397
Effective: 01/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 691 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO DISPOSAL OF COUNTY PROPERTY; AMENDING SECTION 31-808, IDAHO CODE, 3 TO REVISE PROVISIONS AND PROCEDURES FOR DISPOSAL OF TAX DEEDED PROPERTY BY 4 A COUNTY, TO REVISE PROCEDURES FOR NOTICE TO ALL PARTIES IN INTEREST AND 5 TO PROVIDE PROCEDURES FOR HOLDING AND DISPOSING OF EXCESS FUNDS; DECLARING 6 AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 31-808, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 31-808. SALE OF COUNTY PROPERTY -- GENERAL PROCEDURE -- SALE OF PROPERTY 11 ACQUIRED THROUGH TAX DEED -- PROCEDURE AFTER ATTEMPTED AUCTION -- EXCHANGE OF 12 COUNTY PROPERTY -- SALE OF CERTAIN ODD-LOT PROPERTY -- SALE, EXCHANGE OR DONA- 13 TION OF PROPERTY TO OTHER UNITS OF GOVERNMENT. (1) A board of county commis- 14 sioners shall have the power and authority to sell or offer for sale at public 15 auction any real or personal property belonging to the county not necessary 16 for its use. However, personal property not exceeding two hundred fifty dol- 17 lars ($250) in value may be sold at private sale without notice or public auc- 18 tion. Prior to offering the property for sale, the board of county commission- 19 ers shall advertise notice of the auction in a newspaper, as defined in sec- 20 tion 60-106, Idaho Code, either published in the county or having a general 21 circulation in the county, not less than ten (10) calendar days prior to the 22 auction. If the property to be sold is real property, the notice to be pub- 23 lished shall contain the legal description as well as the street address of 24 the property. If the property is outside the corporate limits of a city and 25 does not have a street address, then the description shall also contain the 26 distance and direction of the location of the real property from the closest 27 city. 28 If the property to be sold is acquired by tax deed, the notice required to 29 be published shall include, next to the description of the property, the name 30 of the taxpayer as it appears in the delinquent tax certificate upon which the 31 tax deed was issued. The property shall be sold to the highest bidder. How- 32 ever, the board of county commissioners shall set the minimum bid for the tax 33 deeded property to include all property taxes owing, interest and costs but 34 they may reserve the right to reject any and all bids and shall have discre- 35 tionary authority to reject or accept any bid which may be made for an amount 36 less than the total amount of all delinquent taxes, late charges, interest and 37 costs,and interestincluding other costs associated with the property, adver- 38 tising, and sale, which may have accrued against any property so offered for 39 sale, including the amount specified in the tax deed to the county. Such 40 action by the board in setting the minimum bid shall be duly noted in their 41 minutes. Failure to do so shall not invalidate a sale. For tax deeded prop- 42 erty, the board of county commissioners shall conduct an auction no later than 43 fourteen (14) months from the issuance of the tax deed. 2 1 (2) (a) Proceeds from the sale of county property not acquired by tax 2 deed shall be paid into the county treasury for the general use of the 3 county. 4 (b) If the property to be sold has been acquired by tax deed, pursuant to 5 the provisions of chapter 10, title 63, Idaho Code, the proceeds from the 6 sale, afterreimbursement to the county for the cost of advertising and7sale, shall be apportioned to the taxing districts in which the property8is situated according to the levy applied to the year of delinquency upon9which the tax deed was issued to the countypayment of all delinquent 10 taxes, late charges, interest and costs, including the cost for maintain- 11 ing the property, shall be apportioned by the board of county commission- 12 ers to parties in interest as defined in section 63-201, Idaho Code, and 13 then to the owner(s) of record of such property at the time the tax deed 14 was issued on the property. 15 (c) Once such tax deeded property has been sold, the board of county com- 16 missioners shall within thirty (30) days notify all parties in interest of 17 such sale and the amount of the excess proceeds. Such parties in interest 18 shall respond to the board of county commissioners, within sixty (60) days 19 of receiving such notice, making claim on the proceeds. No responses post- 20 marked or received after the sixtieth day shall be accepted. The board of 21 county commissioners shall then make payment to parties in interest in 22 priority of the liens pursuant to law, within sixty (60) days. All funds 23 available after payment to parties in interest shall be returned to the 24 owner(s) of record of the property at the time the tax deed was issued. 25 All costs associated with the compliance of this section shall be deducted 26 from any amounts refunded to the parties in interest or owner(s) of 27 record. 28 (3) Any property sold may be carried on a recorded contract with the 29 county for a term not to exceed ten (10) years and at an interest rate not to 30 exceed the rate of interest specified in section 28-22-104(1), Idaho Code. The 31 board of county commissioners shall have the authority to cancel any contract 32 if the purchaser fails to comply with any of the terms of the contract and the 33 county shall retain all payments made on the contract. The title to all prop- 34 erty sold on contract shall be retained in the name of the county until full 35 payment has been made by the purchaser. However, the purchaser shall be 36 responsible for payment of all property taxes during the period of the con- 37 tract. 38 (4) Any sale of property by the county shall vest in the purchaser all of 39 the right, title and interest of the county in the property, including all 40 delinquent taxes which have become a lien on the property since the date of 41 issue of the tax deed, if any. 42 (5) In addition to the purchase price, a purchaser of county property, 43 including property acquired by tax deed, shall pay all fees required by law 44 for the transfer of property. No deed for any real estate purchased pursuant 45 to the provisions of this section shall be delivered to a purchaser until such 46 deed has been recorded in the county making the sale. 47 (6) Should the county be unable to sell at a public auction any real or 48 personal property belonging to the county, including property acquired by tax 49 deed, it may sell the property without further notice by public or private 50 sale upon such terms and conditions as the county deems necessary. Distribu- 51 tion of the proceeds of sale shall be as set forth in subsection (2) of this 52 section. 53 (7) The board of county commissioners may at its discretion, when in the 54 county's best interest, exchange and do all things necessary to exchange any 55 of the real property now or hereafter held and owned by the county for real 3 1 property of equal value, public or private, to consolidate county real prop- 2 erty or aid the county in the control and management or use of county real 3 property. 4 (8) The board of county commissioners may, by resolution, declare certain 5 parcels of real property as odd-lot property, all or portions of which are not 6 needed for public purposes and are excess to the needs of the county. For pur- 7 poses of this subsection, odd-lot property is defined as that property that 8 has an irregular shape or is a remnant and has value primarily to an adjoining 9 property owner. Odd-lot property may be sold to an adjacent property owner 10 for fair market value that is estimated by a land appraiser licensed to 11 appraise property in the state of Idaho. If, after thirty (30) days' written 12 notice, an adjoining property owner or owners do not desire to purchase the 13 odd-lot property, the board of county commissioners may sell the property to 14 any other interested party for not less than the appraised value. When a sale 15 of odd-lot property is agreed to, a public advertisement of the pending sale 16 shall be published in one (1) edition of the newspaper as defined in subsec- 17 tion (1) of this section, and the public shall have fifteen (15) days to 18 object to the sale in writing. The board of county commissioners shall make 19 the final determination regarding the sale of odd-lot property in an open 20 meeting. 21 (9) In addition to any other powers granted by law, the board of county 22 commissioners may at their discretion, grant to or exchange with the federal 23 government, the state of Idaho, any political subdivision or taxing district 24 of the state of Idaho or any local historical society which is incorporated as 25 an Idaho nonprofit corporation which operates primarily in the county or main- 26 tains a museum in the county, with or without compensation, any real or per- 27 sonal property or any interest in such property owned by the county or 28 acquired by tax deed, after adoption of a resolution by the board of county 29 commissioners that the grant or exchange of property is in the public inter- 30 est. Notice of such grant or exchange shall be as provided in subsection (1) 31 of this section and the decision may be made at any regularly or specially 32 scheduled meeting of the board of county commissioners. The execution and 33 delivery by the county of the deed conveying an interest in the property shall 34 operate to discharge and cancel all levies, liens and taxes made or created 35 for the benefit of the state, county or any other political subdivision or 36 taxing district and to cancel all titles or claims of title including claims 37 of redemption to such real property asserted or existing at the time of such 38 conveyance. However, if the property conveyed is subject to a lien for one (1) 39 or more unsatisfied special assessments, the lien shall continue until all 40 special assessments have been paid in full. At no time shall a lien for a spe- 41 cial assessment be extinguished prior to such special assessment having been 42 paid in full. Any property conveyed to any local historical society by the 43 county shall revert to the county when the property is no longer utilized for 44 the purposes for which it was conveyed. 45 (10) When the county has title to mineral rights severed from the property 46 to which they attach, and the mineral rights have value of less than twenty- 47 five dollars ($25.00) per acre, the board of county commissioners may act to 48 return the mineral rights to the land from which they were severed in the fol- 49 lowing manner: the proposed action must appear on the agenda of a regular 50 meeting of the board of county commissioners; and the motion to make the 51 return must be adopted unanimously by the board voting in open meeting. 52 (11) If there are excess funds and the owner(s) of record of the property 53 at the time the tax deed was issued on the property cannot be located, then 54 the county treasurer shall put all remaining excess funds in an interest-bear- 55 ing trust for three (3) years. The county may charge for the actual costs for 4 1 performing the search, and after three (3) years, any remaining funds shall 2 be transferred to the county indigent fund. The levy set to fund this portion 3 of the indigent budget shall be calculated based on the budget subject to the 4 limitation in section 63-802, Idaho Code, less the money received from the 5 interest-bearing trust. 6 SECTION 2. An emergency existing therefor, which emergency is hereby 7 declared to exist, this act shall be in full force and effect on and after its 8 passage and approval, and retroactively to January 1, 2008.
STATEMENT OF PURPOSE
RS 18148
The intent of this legislation is to change the current tax
deeding process. This legislation would:
Require the Board of County Commissioners to set the minimum
bid for property at all delinquent taxes plus costs:
Require the County to conduct an auction for such property
no later than fourteen (14) months from the issuance of a tax
deed; and
Establish a process for distribution of any excess proceeds.
The new process for distribution requires all parties of interest
be notified within thirty (30) days of the sale and requires them
to respond to the County in writing within sixty (60) days of
being provided notice to claim the proceeds. After payment of
such parties, all remaining excess funds shall be returned to the
owner(s) of record. If no owner(s) of record can be found, the
County shall set a trust and continue to try to locate any
owner(s). If after two (2) years, no owner is located, such
remaining funds shall be distributed to the County Indigent Fund
to reduce taxes.
FISCAL NOTE
There is no impact to the State General Fund.
Contact
Name: Representative Phil Hart, Senator Mike Jorgenson
Phone: 208.332.1000
STATEMENT OF PURPOSE/FISCAL NOTE H 691