2008 Legislation
Print Friendly

SENATE BILL NO. 1385<br /> – County, property/tax deed, disposal


View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status

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

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

Bill Text

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


                                       IN THE SENATE

                                    SENATE BILL NO. 1385


  1                                        AN ACT

  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:

 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 interest including 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-


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


  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-


  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:

 10    If  real property on which there is a delinquency is not redeemed within three
 11    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;


  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 / Fiscal Impact

                      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.

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