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S1385......................................by LOCAL GOVERNMENT AND TAXATION
DISPOSAL OF PROPERTY - 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; to provide procedures for holding
and disposing of excess funds; and to shorten the period of time when there
is a delinquency on real property before a tax deed is made for such
property.
02/07 Senate intro - 1st rdg - to printing
02/08 Rpt prt - to Loc Gov
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 32-1-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Burkett, Cameron, Corder,
Darrington, Davis, Fulcher, Geddes, Goedde, Hammond, Heinrich, Hill,
Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- Broadsword
Absent and excused -- Coiner, Gannon
Floor Sponsor - Jorgenson
Title apvd - to House
02/26 House intro - 1st rdg - to Rev/Tax
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 58-10-2
AYES -- Anderson, Bayer, Bedke, Bell, Bilbao, Black, Block, Bock,
Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Durst, Eskridge, Hagedorn, Hart, Henbest, Henderson,
Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour, Luker, Mathews,
McGeachin, Moyle, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo, Roberts, Rusche, Sayler, Schaefer, Shepherd(08), Shirley,
Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thomas, Trail,
Vander Woude, Wills, Wood(27), Mr. Speaker
NAYS -- Andrus, Barrett, Harwood, Loertscher, Marriott, Mortimer,
Nielsen, Shepherd(02), Thayn, Wood(35)
Absent and excused -- Crane, Ruchti
Floor Sponsor - Hart
Title apvd - to Senate
03/13 To enrol - Rpt enrol - Pres signed
03/14 Sp signed
03/17 To Governor
03/20 Governor VETOED
03/26 Senate Ref'd to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1385 BY LOCAL GOVERNMENT 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; AMENDING 6 SECTION 63-1005, IDAHO CODE, TO SHORTEN THE PERIOD OF TIME WHEN THERE IS A 7 DELINQUENCY ON REAL PROPERTY BEFORE A TAX DEED IS MADE FOR SUCH PROPERTY; 8 DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 31-808, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 31-808. SALE OF COUNTY PROPERTY -- GENERAL PROCEDURE -- SALE OF PROPERTY 13 ACQUIRED THROUGH TAX DEED -- PROCEDURE AFTER ATTEMPTED AUCTION -- EXCHANGE OF 14 COUNTY PROPERTY -- SALE OF CERTAIN ODD-LOT PROPERTY -- SALE, EXCHANGE OR DONA- 15 TION OF PROPERTY TO OTHER UNITS OF GOVERNMENT. (1) A board of county commis- 16 sioners shall have the power and authority to sell or offer for sale at public 17 auction any real or personal property belonging to the county not necessary 18 for its use. However, personal property not exceeding two hundred fifty dol- 19 lars ($250) in value may be sold at private sale without notice or public auc- 20 tion. Prior to offering the property for sale, the board of county commission- 21 ers shall advertise notice of the auction in a newspaper, as defined in sec- 22 tion 60-106, Idaho Code, either published in the county or having a general 23 circulation in the county, not less than ten (10) calendar days prior to the 24 auction. If the property to be sold is real property, the notice to be pub- 25 lished shall contain the legal description as well as the street address of 26 the property. If the property is outside the corporate limits of a city and 27 does not have a street address, then the description shall also contain the 28 distance and direction of the location of the real property from the closest 29 city. 30 If the property to be sold is acquired by tax deed, the notice required to 31 be published shall include, next to the description of the property, the name 32 of the taxpayer as it appears in the delinquent tax certificate upon which the 33 tax deed was issued. The property shall be sold to the highest bidder. How- 34 ever, the board of county commissioners shall set the minimum bid for the tax 35 deeded property to include all property taxes owing, interest and costs but 36 they may reserve the right to reject any and all bids and shall have discre- 37 tionary authority to reject or accept any bid which may be made for an amount 38 less than the total amount of all delinquent taxes, late charges, interest and 39 costs,and interestincluding other costs associated with the property, adver- 40 tising, and sale, which may have accrued against any property so offered for 41 sale, including the amount specified in the tax deed to the county. Such 42 action by the board in setting the minimum bid shall be duly noted in their 43 minutes. Failure to do so shall not invalidate a sale. For tax deeded prop- 2 1 erty, the board of county commissioners shall conduct an auction no later than 2 fourteen (14) months from the issuance of the tax deed. 3 (2) (a) Proceeds from the sale of county property not acquired by tax 4 deed shall be paid into the county treasury for the general use of the 5 county. 6 (b) If the property to be sold has been acquired by tax deed, pursuant to 7 the provisions of chapter 10, title 63, Idaho Code, the proceeds from the 8 sale, afterreimbursement to the county for the cost of advertising and9sale, shall be apportioned to the taxing districts in which the property10is situated according to the levy applied to the year of delinquency upon11which the tax deed was issued to the countypayment of all delinquent 12 taxes, late charges, interest and costs including the cost for maintaining 13 the property, apportioned by the board of county commissioners to parties 14 in interest as defined in section 63-201, Idaho Code, and then to the 15 owner(s) of record of such property at the time the tax deed was issued on 16 the property. 17 (c) Once such tax deeded property has been sold, the board of county com- 18 missioners shall within thirty (30) days notify all parties in interest of 19 such sale and the amount of the excess proceeds. Such parties in interest 20 shall respond to the board of county commissioners, within sixty (60) days 21 of receiving such notice, making claim on the proceeds. No responses post- 22 marked or received after the sixtieth day shall be accepted. The board of 23 county commissioners shall then make payment to parties in interest in 24 priority of the liens pursuant to law, within sixty (60) days. All funds 25 available after payment to parties in interest shall be returned to the 26 owner(s) of record of the property at the time the tax deed was issued. 27 All costs associated with the compliance of this section shall be deducted 28 from any amounts refunded to the parties in interest or owner(s) of 29 record. 30 (3) Any property sold may be carried on a recorded contract with the 31 county for a term not to exceed ten (10) years and at an interest rate not to 32 exceed the rate of interest specified in section 28-22-104(1), Idaho Code. The 33 board of county commissioners shall have the authority to cancel any contract 34 if the purchaser fails to comply with any of the terms of the contract and the 35 county shall retain all payments made on the contract. The title to all prop- 36 erty sold on contract shall be retained in the name of the county until full 37 payment has been made by the purchaser. However, the purchaser shall be 38 responsible for payment of all property taxes during the period of the con- 39 tract. 40 (4) Any sale of property by the county shall vest in the purchaser all of 41 the right, title and interest of the county in the property, including all 42 delinquent taxes which have become a lien on the property since the date of 43 issue of the tax deed, if any. 44 (5) In addition to the purchase price, a purchaser of county property, 45 including property acquired by tax deed, shall pay all fees required by law 46 for the transfer of property. No deed for any real estate purchased pursuant 47 to the provisions of this section shall be delivered to a purchaser until such 48 deed has been recorded in the county making the sale. 49 (6) Should the county be unable to sell at a public auction any real or 50 personal property belonging to the county, including property acquired by tax 51 deed, it may sell the property without further notice by public or private 52 sale upon such terms and conditions as the county deems necessary. Distribu- 53 tion of the proceeds of sale shall be as set forth in subsection (2) of this 54 section. 55 (7) The board of county commissioners may at its discretion, when in the 3 1 county's best interest, exchange and do all things necessary to exchange any 2 of the real property now or hereafter held and owned by the county for real 3 property of equal value, public or private, to consolidate county real prop- 4 erty or aid the county in the control and management or use of county real 5 property. 6 (8) The board of county commissioners may, by resolution, declare certain 7 parcels of real property as odd-lot property, all or portions of which are not 8 needed for public purposes and are excess to the needs of the county. For pur- 9 poses of this subsection, odd-lot property is defined as that property that 10 has an irregular shape or is a remnant and has value primarily to an adjoining 11 property owner. Odd-lot property may be sold to an adjacent property owner for 12 fair market value that is estimated by a land appraiser licensed to appraise 13 property in the state of Idaho. If, after thirty (30) days' written notice, an 14 adjoining property owner or owners do not desire to purchase the odd-lot prop- 15 erty, the board of county commissioners may sell the property to any other 16 interested party for not less than the appraised value. When a sale of odd-lot 17 property is agreed to, a public advertisement of the pending sale shall be 18 published in one (1) edition of the newspaper as defined in subsection (1) of 19 this section, and the public shall have fifteen (15) days to object to the 20 sale in writing. The board of county commissioners shall make the final deter- 21 mination regarding the sale of odd-lot property in an open meeting. 22 (9) In addition to any other powers granted by law, the board of county 23 commissioners may at their discretion, grant to or exchange with the federal 24 government, the state of Idaho, any political subdivision or taxing district 25 of the state of Idaho or any local historical society which is incorporated as 26 an Idaho nonprofit corporation which operates primarily in the county or main- 27 tains a museum in the county, with or without compensation, any real or per- 28 sonal property or any interest in such property owned by the county or 29 acquired by tax deed, after adoption of a resolution by the board of county 30 commissioners that the grant or exchange of property is in the public inter- 31 est. Notice of such grant or exchange shall be as provided in subsection (1) 32 of this section and the decision may be made at any regularly or specially 33 scheduled meeting of the board of county commissioners. The execution and 34 delivery by the county of the deed conveying an interest in the property shall 35 operate to discharge and cancel all levies, liens and taxes made or created 36 for the benefit of the state, county or any other political subdivision or 37 taxing district and to cancel all titles or claims of title including claims 38 of redemption to such real property asserted or existing at the time of such 39 conveyance. However, if the property conveyed is subject to a lien for one (1) 40 or more unsatisfied special assessments, the lien shall continue until all 41 special assessments have been paid in full. At no time shall a lien for a spe- 42 cial assessment be extinguished prior to such special assessment having been 43 paid in full. Any property conveyed to any local historical society by the 44 county shall revert to the county when the property is no longer utilized for 45 the purposes for which it was conveyed. 46 (10) When the county has title to mineral rights severed from the property 47 to which they attach, and the mineral rights have value of less than twenty- 48 five dollars ($25.00) per acre, the board of county commissioners may act to 49 return the mineral rights to the land from which they were severed in the fol- 50 lowing manner: the proposed action must appear on the agenda of a regular 51 meeting of the board of county commissioners; and the motion to make the 52 return must be adopted unanimously by the board voting in open meeting. 53 (11) If there are excess funds and the owner(s) of record of the property 54 at the time the tax deed was issued on the property cannot be located, then 55 the county treasurer shall put all remaining excess funds in an interest-bear- 4 1 ing trust for two (2) years. The county may charge for the actual costs for 2 performing the search, and after two (2) years, any remaining funds shall be 3 transferred to the county indigent fund. The levy set to fund this portion of 4 the indigent budget shall be calculated based on the budget subject to the 5 limitation in section 63-802, Idaho Code, less the money received from the 6 interest-bearing trust. 7 SECTION 2. That Section 63-1005, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-1005. PENDING ISSUE OF TAX DEED -- GENERAL PROVISIONS -- NOTICE. (1) 10 If real property on which there is a delinquency is not redeemed withinthree11 two (32) years from the date of delinquency, the county tax collector of the 12 county wherein such property is situated must make, in favor of said county, a 13 tax deed for such property. However, the county shall not be entitled to a tax 14 deed for such real property until: 15 (a) A notice of pending issue of tax deed has been given; and 16 (b) An affidavit of compliance has been recorded. 17 (2) The county tax collector of the county wherein the real property for 18 which a tax deed may issue shall serve or cause to be served written notice of 19 pending issue of tax deed upon the record owner or owners and parties in 20 interest of record in the following exclusive manner: 21 (a) By serving or causing to be served a copy of such notice by certified 22 mail with return receipt demanded upon the record owner or owners and par- 23 ties in interest of record at their last known address, such service of 24 notice to be made no more than five (5) months nor less than two (2) 25 months before the time set for the tax deed to issue; 26 (b) In the event that such notice is served as above described and 27 returned undelivered after attempting to locate and serve the record 28 owner or owners and parties in interest of record, by publishing a summary 29 of such notice in a newspaper having general circulation in the county 30 wherein the real property is situated. Such publication must be made at 31 least once a week for four (4) consecutive weeks, the last publication of 32 which is to be no more than two (2) months nor less than fourteen (14) 33 days before the time set for the tax deed to issue. 34 (3) The record owner or owners and parties in interest of record shall be 35 liable and pay to the county tax collector all costs and fees in the prepara- 36 tion, service and publication of such notice and the tax deed process and such 37 costs shall become a perpetual lien upon the property in favor of the county 38 tax collector. 39 (4) Such notice and summary thereof must contain the following items: 40 (a) The name and last known address of the record owner or owners; 41 (b) An accurate description of the property on which the delinquency 42 stands, or, in lieu thereof, the tax number of record or parcel number 43 used in assessing the same; 44 (i) A street address or other information which would be of assis- 45 tance to the public in ascertaining the location of the property; or 46 (ii) The name and telephone number of a person, firm or business 47 office from whom information concerning the location of the property 48 may be obtained; 49 (c) The year for which the property tax was assessed and for which the 50 delinquency exists; 51 (d) An itemized statement detailing the delinquency and all costs and 52 fees incident to the delinquency and notice up to and including the date 53 of the making of such notice; 5 1 (e) The date the delinquency occurred; 2 (f) The time, date, place at which, and by whom the tax deed will issue; 3 and 4 (g) A statement that the record owner or owners or any party in interest 5 shall have adequate opportunity to be heard, to confront and cross-examine 6 any evidence or witness against the record owner or owners, and obtain and 7 present evidence on behalf of the record owner or owners or any party in 8 interest. Such statement shall also contain notice of to whom inquiries 9 and objections shall be directed concerning the notice and information 10 contained therein and by what date such inquiries and objections must be 11 received. 12 (5) Any party in interest may file a written request for such notice in 13 the office of the county tax collector of the county wherein the property for 14 which the delinquency stands have been made is situated. Such request shall 15 contain the following items: 16 (a) The name and address of the record owner or owners; 17 (b) An accurate description of the property covered by the interest, or, 18 in lieu thereof, the tax number of record or parcel number used in assess- 19 ing the same; 20 (c) The name and address of the party in interest; 21 (d) An accurate description of the interest held; and 22 (e) The date of expiration of the interest held. 23 (6) If a record owner or owners or a party in interest shall have actual 24 notice of the notice of pending issue of tax deed or that issuance of a tax 25 deed is pending, it shall be deemed sufficient notice under this section. 26 (7) Service shall be deemed completed upon depositing the certified let- 27 ter containing the original or a copy of the notice of pending issue of tax 28 deed with return receipt demanded in any United States post office, or upon 29 physical delivery of such notice or copy thereof by the county tax collector 30 or his appointed agent to the record owner or owners or party in interest, or 31 upon the date of last publication. 32 (8) No less than five (5) working days prior to the date on which the tax 33 deed shall be issued, the county tax collector shall make an affidavit of com- 34 pliance stating that he has complied with the conditions of issuance of notice 35 of pending issue of tax deed described in this section, and stating particu- 36 larly the facts relied on as constituting such compliance. 37 (9) Such affidavit shall be recorded in the office of the county 38 recorder. Such record of affidavit shall be prima facie evidence that such 39 notice has been given. 40 (10) Any person who knowingly and intentionally swears falsely to facts 41 averred in any affidavit shall be guilty of perjury and be punished by a fine 42 of not more than three hundred dollars ($300). 43 SECTION 3. An emergency existing therefor, which emergency is hereby 44 declared to exist, this act shall be in full force and effect on and after its 45 passage and approval, and retroactively to January 1, 2008.
STATEMENT OF PURPOSE
RS 17738C1
The intent of this legislation is to change the current tax deeding process.
This legislation would:
Reduce the delinquency time for subjecting a property to the issuance of a
tax deed from three (3) years to two (2) years;
Require the Board of County commissioners to set the minimum bid for such
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 in interest be notified within
30 days of the sale and requires them to respond to the county in writing
within 60 days of being provided notice to claim proceeds; after payment to
such parties all remaining excess funds shall be returned to the owner(s) of
record; if no owners of record can be found then the county shall set up a
trust and continue to try and locate an owner; and after two (2) years and
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, Representative Cliff Bayer,
Representative Mike Moyle, Representative Nicole LeFavour
Phone: (208) 332-1000
Senator Mike Jorgenson
Tony Poinelli , Idaho Association of Counties
STATEMENT OF PURPOSE/FISCAL NOTE S 1385
REVISED REVISED REVISED