To: Board of Supervisors
From: Dan Mierzwa, Treasurer-Tax Collector
Report Title: ADOPT Resolution authorizing the sale of specified tax-defaulted property at public auction, pursuant to the California Revenue and Taxation Code ("R&T") §3698, as recommended by the Treasurer-Tax Collector.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution authorizing the sale of specified tax-defaulted property at public auction, pursuant to the California Revenue and Taxation Code ("R&T") §3698, as recommended by the Treasurer-Tax Collector.
FISCAL IMPACT:
All costs will be recovered from the proceeds of the sale. Property or property interests that have been offered for sale at least once and where no acceptable bids have been received at the minimum price, the tax collector may offer that same property or those interests at the same or next scheduled sale at a minimum price that may be less than the amount of defaulted taxes, delinquent and redemption penalties as specified in R&T §3698.5(a)(1). Should the final selling price at public auction be less than the amount as specified in R&T §3698.5(a)(1), proceeds shall be distributed as specified in R&T §4673.1 & R&T §4674 and any remaining balance to satisfy the amounts as specified in R&T §3698.5(a)(1) may be transferred from the Tax Loss Reserve Fund. (R&T §4703.2(c).)
BACKGROUND:
The Treasurer-Tax Collector has the authority to sell residential property that has been tax-defaulted property for five or more years and nonresidential commercial property that has been tax-defaulted for three or more years (R&T §3691). All or any portion of such property may be offered for sale, without regard to its boundaries (R&T § 3691). The purpose of the sale is to collect unpaid taxes. Generally, offering a tax-defaulted property for sale achieves such purpose, either by collecting the unpaid taxes from the proceeds of the sale or through redemption by the assessee.
Written approval of the Board of Supervisors (R&T §§3694 and 3698) is required to sell property at public auction (R&T §3692) to the highest bidder at the time and place fixed for sale (R&T §3706).
Any parcel remaining unsold may be reoffered within a 90-day period and any new parties of interest shall be notified in accordance with R&T § 3701 (R&T § 3692).
Any person or entity, including cities, taxing agencies, revenue districts and the State may purchase property at a public auction (R&T §§3691 and 3705). The only exception to eligible purchasers is the Treasurer-Tax Collector, who conducts the sale, or his/her employees (California Government Code §1090).
If a parcel is redeemed before the close of business on the last business day prior to the date of sale, the power to sell is automatically nullified and the parcel will be withdrawn from the sale (R&T §§ 3707, 4101 and 4112). If a parcel is redeemed within 90 days of the scheduled sale, $150 will be collected to reimburse the County for costs incurred in preparing to conduct the sale (R&T §4112).
CONSEQUENCE OF NEGATIVE ACTION:
If not approved, the annual Treasurer-Tax Collector’s tax-defaulted public auction will not proceed, and property taxes will not be collected.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
IN THE MATTER OF Sale of Tax-Defaulted Property by the County Treasurer-Tax Collector
WHEREAS, the Board, pursuant to section 3698 of the Revenue and Taxation Code, having been notified by the County Treasurer-Tax Collector of his intent to sell certain tax-defaulted property at public auction and having been provided with a description and minimum purchase price for which each will be sold, and the notice of intended sale, in compliance with Revenue and Taxation Code section 3704, of the aforementioned properties be posted or published in accordance with sections 3702 and 3703 of the California Revenue and Taxation Code.
WHEREAS, the Board, pursuant to section 3692 (e) of the Revenue and Taxation Code, having been notified by the County Treasurer-Tax Collector that any parcel remaining unsold may be reoffered within a 90-day period and any new parties of interest shall be notified in accordance with section 3701 of the Revenue and Taxation Code.
NOW, THEREFORE, BE IT RESOLVED that:
1. The County Treasurer-Tax Collector's proposed sale of tax-defaulted properties listed in Exhibit A attached hereto and made a part hereof, at or above the minimum price indicated, is APPROVED pursuant to section 3698 of the Revenue and Taxation Code.
2. The notice of intended sale be posted or published in accordance with sections 3702 and 3703 of the Revenue and Taxation Code.
3. Any parcel remaining unsold may be reoffered within a 90-day period and any new parties of interest shall be notified in accordance with section 3701 of the Revenue and Taxation Code.