2008 Legislation
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HOUSE BILL NO. 691<br /> – Property acquired/tax deed/disposal


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Bill Status

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

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 691

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT

  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:

 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 interest including 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.


  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,  after  reimbursement  to the county for the cost of advertising and
  7        sale, shall be apportioned to the taxing districts in which  the  property
  8        is  situated according to the levy applied to the year of delinquency upon
  9        which the tax deed was issued to the  county  payment  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


  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


  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 / Fiscal Impact

                       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.

Name: Representative Phil Hart, Senator Mike Jorgenson
Phone: 208.332.1000

STATEMENT OF PURPOSE/FISCAL NOTE                         H 691