County of Sonoma Agenda Item Summary Report

Transcription

1 County of Sonoma Agenda Item Summary Report Agenda Item Number: 16 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA To: The Board of Supervisors of Sonoma County Board Agenda Date: August 14, 2018 Vote Requirement: Majority Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector (ACTTC) Staff Name and Phone Number: Jonathan Kadlec Title: 2018 Defaulted Property Tax Sale Recommended Actions: Supervisorial District(s): Approve a resolution of the Sonoma County Board of Supervisors authorizing the ACTTC to conduct the sale of tax defaulted property at either a public auction on or after October 26, 2018 or a sealed bid sale on or after November 7, Executive Summary: In accordance with Revenue and Taxation Code Sections 3691 through 3694 and 3706, the Auditor- Controller Treasurer-Tax Collector (ACTTC) is required to sell at Public Auction properties that are delinquent five years or more on their secured property taxes. The ACTTC is expecting to auction approximately 32 properties this year, of which 16 are improved properties and 16 are unimproved (See Attachment 1 Public Auction Parcels). Additionally, the ACTTC is conducting a Sealed Bid sale of tax defaulted property. In accordance with Revenue and Taxation Code Section 3691, 3692, 3694, 3695 and 3706, the ACTTC is required to sell by Sealed Bid, those Tax Defaulted properties that are delinquent five years or more on their secured property tax and of limited value to the general public. Approval of the sale and fixing of the date, time and place must be authorized by the Board of Supervisors and the State Controller s office. The ACTTC is expecting to offer 62 parcels which are all believed to be unimproved (See Attachment 2 Sealed Bid Parcels). The Sealed Bid sale differs from the Public Auction sale because the Assessor has deemed these parcels as unusable by their size, location, or other conditions and the parcels can only be offered to eligible bidders. Discussion: In accordance with Revenue and Taxation Code Sections 3691 through 3694 and 3706, the Auditor- Controller Treasurer-Tax Collector (ACTTC) is required to sell at Public Auction properties that are

2 delinquent five years or more on their secured property taxes. The ACTTC is expecting to offer at Public Auction approximately 32 properties this year, of which 16 are improved properties and 16 are unimproved. Additionally, the ACTTC is conducting a Sealed Bid sale of tax defaulted property. In accordance with Revenue and Taxation Code Section 3691, 3692, 3694, 3695 and 3706, the ACTTC is required to sell by Sealed Bid, those Tax Defaulted properties that are delinquent five years or more on their secured property tax and of limited value to the general public. Approval of the sale and fixing of the date, time and place must be authorized by the Board of Supervisors and the State Controller s office. The Sealed Bid sale differs from the Public Auction sale because the Assessor has deemed these parcels as unusable by their size, location, or other conditions and the parcels can only be offered to eligible bidders. For the Public Auction, assessees may avoid the sale of the tax defaulted properties by paying the full amount due and thereby redeeming the property. All redemption payments must by physically received in the office of the ACTTC before the close of business on the last business day before the date of commencement of the sale (Revenue and Taxation Code Section 3707 (b)). Upon receipt of a timely redemption, the property will be withdrawn from the sale. Notice will be given to all parties of interest and a sale list will be published in accordance with Section 3702 of the Revenue and Taxation Code. Efforts made to inform property owners of delinquent property taxes and the potential auction of the property at tax sale include numerous written notifications to the assessee, publications in the local Press Democrat newspaper, certified notifications to the assesse and, in accordance with Revenue and Taxation Code Section (a), a personal visit is made to the property to speak with the owner/occupant of the property. At this personal visit, the owner/occupant is given information regarding their right to redeem the property up to the close of business of the last business day prior to the sale, and their right to claim excess proceeds if the property is sold. If no person is located at the property, the notice is posted at the property and photographic evidence of delivery is obtained. Approval of the sale must be provided by the Board of Supervisors under Revenue and Taxation Code Section Attachment 1 to this item provides a description of each property to be sold and the minimum price at which each property is proposed to be sold, as required by Revenue and Taxation Code Section The Board s approval will commence the process of Public Notification and establish the redemption dates for the current or last assessee of a property. The internet sale is set for on or after October 26, 2018 For the Sealed Bid sale, this approval will commence the process of Public Notification and will establish redemption dates for the current or last assessee. Notice will be given to all in accordance with Section 3702 of the California Revenue and Taxation Code. The Sealed Bid minimum bids are set at a level to help maximize the success of the sale of the parcels. Parcels offered at Sealed Bid are typically unbuildable, low value parcels and it is in the best interest of the County to sell them at a price low enough to remove them from the delinquent tax roll. Many of the parcels had previously been over valued creating an artificially high base tax amount or have other

3 direct charges which may not be applicable. The minimum bids are below what is needed to fully pay the delinquent taxes and will result in a tax loss. Pursuant to California Revenue & Taxation Code Section 4703, the Tax Loss Reserve Fund (TLRF) is a mandated fund required to maintain a balance of 1% of ad valorem taxes (Teetered taxes) levied on the current tax roll and is held in trust for any potential tax losses resulting from Public Auction or Sealed bid sales. In the event of a tax loss, the TLRF is then used pay off the remaining balance of previously Teetered taxes after tax-defaulted sale proceeds are posted. Assuming that all the parcels sell at the listed minimum bids (see Attachment 2), the TLRF would be required to pay approximately $108,000 toward the defaulted tax amounts not captured by the sale of these parcels. If any of the parcels sell for more than the minimum amount shown, it will reduce the potential need for a TLRF contribution. Pursuant to Revenue & Taxation Code Section 3691 properties eligible for either the public auction or the sealed bid sale may not include any property that was damaged by a State or Federally declared disaster. None of the properties listed were damaged by the October 2017 fires Prior Board Actions: Board approved Resolution authorizing sale of Tax Defaulted Property Board approved Resolution authorizing sale of Tax Defaulted Property Board approved Resolution authorizing sale of Tax Defaulted Property Board approved Resolution authorizing sale of Tax Defaulted Property Strategic Plan Alignment Goal 2: Economic and Environmental Stewardship

4 Fiscal Summary Expenditures FY Adopted FY Projected FY Projected Budgeted Expenses Additional Appropriation Requested Total Expenditures Funding Sources General Fund/WA GF State/Federal Fees/Other Use of Fund Balance Contingencies Total Sources Narrative Explanation of Fiscal Impacts: The Tax Loss Reserve Fund is a mandated trust fund required to maintain a balance of 1% of all taxes and assessments levied on the tax roll (with some minor exceptions). Because this is a trust fund it is not a budgeted item and therefore there will be no budget impact. Staffing Impacts Position Title (Payroll Classification) Monthly Salary Range (A I Step) Additions (Number) Deletions (Number) Narrative Explanation of Staffing Impacts (If Required): Attachments: 1. Attachment 1: Public Auction Parcels 2. Attachment 2: Sealed Bid sale parcel listing 3. Board Resolution Related Items On File with the Clerk of the Board:

5 Attachment 1 Public Auction Parcels Fee Parcel TRA Situs City Unincorp Min Bid FLAMINGO RD COTATI $ 17, JUDITH CT PETALUMA $ 1, POST ST PETALUMA $ 42, CASELLA WAY PETALUMA $ 36, GUERNEVILLE RD SANTA ROSA $ 11, NONE SANTA ROSA $ 2, FRANKLIN AVE SANTA ROSA $ 19, NORTH ST SANTA ROSA $ 32, ANDRIEUX ST SONOMA $ 8, WINDSOR RIVER RD WINDSOR $ 4, CALISTOGA RD UNINCORP SANTA ROSA $ 36, WILDWOOD MOUNTAIN RD UNINCORP SANTA ROSA $ 22, MARSH RD UNINCORP SANTA ROSA $ 5, MORAGA DR UNINCORP SANTA ROSA $ 28, NONE UNINCORP KENWOOD $ 2, MILL STATION RD UNINCORP SEBASTOPOL $ 22, CANYON 4 RD UNINCORP GUERNEVILLE $ 9, NONE $ 4, NEELEY RD UNINCORP GUERNEVILLE $ 13, MONTE ROSA AVE UNINCORP GUERNEVILLE $ 17, DUNCAN RD UNINCORP GUERNEVILLE $ 10, FERN WAY UNINCORP GUERNEVILLE $ 17, NORA AVE UNINCORP SEBASTOPOL $ 23, CHALK HILL RD UNINCORP HEALDSBURG $ 76, SUMMERHOME PARK RD UNINCORP FORESTVILLE $ 2, WOODSIDE DR UNINCORP FORESTVILLE $ 8, REDWOOD DR UNINCORP COUNTY $ 9, STARRETT HILL DR UNINCORP COUNTY $ 3, MIDDLE WY UNINCORP COUNTY $ 3, ANNAPOLIS RD UNINCORP ANNAPOLIS $ 2, SONOMA AVE UNINCORP GRATON $ 65, ALBATROSS REACH UNINCORP SEA RANCH $ 17,000

6 Attachment 2 Sealed Bid Sale Fee Parcel City Unincorp Min Bid SEBASTOPOL $ PETALUMA $ GUERNEVILLE $ 2, GUERNEVILLE $ 2, GUERNEVILLE $ 1, GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ 3, GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ UN $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ UN $ UN $ UN $ CAMP MEEKER $ UN $ CAMP MEEKER $ FORESTVILLE $ FORESTVILLE $ FORESTVILLE $ FORESTVILLE $ FORESTVILLE $ FORESTVILLE $ 1, FORESTVILLE $ UN $ UN $ FORESTVILLE $ FORESTVILLE $ GUERNEVILLE $ GUERNEVILLE $ GUERNEVILLE $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ UN $ MONTE RIO $ UN $ UN $ UN $ COTATI $ 1.00 $ 20,488.00

7 County of Sonoma State of California Date: August 14, 2018 Item Number: Resolution Number: 4/5 Vote Required Resolution Of The Board Of Supervisors Of The County Of Sonoma, State Of California, Authorizing The Sale Of Tax Defaulted Property At Public Auction On Or After October 26, 2018 And Also Authorizing The Sale Of Tax Defaulted Property By Sealed Bid On Or After November 7, 2018 Pursuant To Chapter 7 Of Part 6 Of Division 1 Of The California Revenue And Taxation Code. Whereas, the County Auditor-Controller Treasurer-Tax Collector has requested approval to sell Tax Defaulted property which is subject to the power of sale at either a public auction or a sealed bid sale; and Whereas, under Revenue and Taxation Code Section 3694, the Board of Supervisors of the County of Sonoma must approve the sale of Tax Defaulted property; Now, Therefore, Be It Resolved that the Board of Supervisors of the County of Sonoma, State of California, hereby grants approval for the Auditor-Controller Treasurer-Tax Collector to sell at Public Auction on or after October 26, 2018 properties that are Tax Defaulted 5 or more years and are subject to the Tax Collector power to sell, in accordance with provisions of Chapter 7, of Part 6, of Division 1, of the California Revenue and Taxation Code, and also approves a sealed bid sale on or after November 7, Supervisors: Gorin: Rabbitt: Zane: Gore: Hopkins: Ayes: Noes: Absent: Abstain: So Ordered.