INSTRUCTIONS FOR TRANSFER OF TAX (FIFA) EXECUTION (pursuant to SB Effective July 1, 2006 and AMENDED July 1,2016 per HB 960)

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INSTRUCTIONS FOR TRANSFER OF TAX (FIFA) EXECUTION (pursuant to SB 585 - Effective July 1, 2006 and AMENDED July 1,2016 per HB 960) All tax execution transfers are processed under the "Caveat Emptor

1 INSTRUCTIONS FOR TRANSFER OF TAX (FIFA) EXECUTION (pursuant to SB Effective July 1, 2006 and AMENDED July 1,2016 per HB 960) All tax execution transfers are processed under the "Caveat Emptor Principle", (buyer beware). Once you become the transferee, you hold the lien and no provision or basis exists for a refund or the filing for a refund. Conduct your Due Diligence! **Guaranteed Payment (CASH or CERTIFIED FUNDS) and a Completed Request to Transfer Tax Execution Form must be submitted to and processed by a Delinquent Staff Employee. DO NOT ATTEMPT TO PAY CASHIER WITHOUT DELINQUENT STAFF REVIEW General conditions for a tax execution transfer are as follows: I. A tax execution must have been Issued and Recorded on the General Execution Docket in the records of the Clerk of Superior Court. The tax execution must exist to be eligible to be transferred. 2. Guaranteed Payment in the form of CASH CU. S. Currency), CERTIFIED FUNDS, or POSTAL MONEY ORDER required. ***Credit Cards, Letters of Credit, or Foreign Funds are not accepted. *** 3. Request must be made in person. Transfers can ''NOT'' be processed by Mail or . UPON COMPLETION OF A REQUEST TO TRANSFER TAX EXECUTION FORM BY A DELINQUENT STAFF EMPLOYEE AND PRESENTATION OF PROPER PAYMENT, THE TRANSFER(S) WILL BE COMPLETED. UPON RECEIPT OF THE TRANSFERRED TAX EXECUTION(S), you (the Transferee), must present the Original Transfer Documents to the Clerk of the Superior Court for entry on the General Execution Docket (G.E.D.) within 30 day after the transfer. *Transferee must allow and provide the delinquent taxpayer, new owner, or interested party a payoff amount and be accessible to receive payment and provide the paying party the Original Transfer Document(s) for recording or record the documents on their behalf. The Transferee is entitled to charge as follows: A. Interest at the annual rate equal to the bank prime loan rate as posted by the Board of Governors of the Federal Reserve System in statistical releaseh.15 or any publication that may supersede it, plus 3% to accrue monthly per Code Section Please review penalty and interest calculations per o. C. G.A , & , amended by HB 960 included in this document. B. Recording Fees charged by Clerk - Recording entry on General Execution Docket. C. Such other penalties as provided by law. For specifics you should consult with your attorney. Interest shall begin from the date the tax is due until the date the tax is paid. The 20% Redemption Premium can 'NOT" be charged until after the Tax Sale by the Sheriff. Any attempt to charge or collect the Redemption Premium without having bid and received a Tax Deed from the conducted Tax Sale, would be unlawful. When in doubt, you should address any specific question(s) to your legal counsel. INSTRUCTiONS FOR TRANSFER OF TAX (F/FA) EXECUTION Page 1

Under this law, the Transferee is required to take action as follows: 1. Within 60 days following the transfer, notify the delinquent taxpayer of the transfer of the tax execution by First Class Mail.

2 Under this law, the Transferee is required to take action as follows: 1. Within 60 days following the transfer, notify the delinquent taxpayer of the transfer of the tax execution by First Class Mail. The Notice must contain the Name, Mailing Address, and telephone number for the transferee's business office, the amount to satisfy (pay-off) such execution and other information deemed appropriate. 2. Should the Notice by First-Class Mail be returned undelivered, the transferee is required to perform due diligence in an effort to obtain the delinquent taxpayer's correct address or any new owner's address and res end the notice by First-Class Mail. The Transferee may accept payment but ''NOT'' take action for Levy and Sale as follows: 1. Must ''NOT'' submit the execution(s) to the appropriate levying official (Sheriff) until 12 months after the transfer date or 24 months after the original due date, whichever is earlier. The Transferee has no right to advertise and sell property under a tax execution. Only the appropriate levying officer, Marshall or Sheriff, shall perform the Levy. 2. A transferee with multiple outstanding executions against the same property is not subject to the time period requirements of paragraph 1, if at least one of the executions meets the time requirements. Additional requirements are as follows: 1. Until the execution is paid in full or satisfied, on or before November 15 of each year following the calendar year in which the transfer occurred, the transferee shall send notice by regular mail to the delinquent taxpayer and the record owner advising the tax execution is still outstanding. The notice must contain the transferee's updated contact information, including mailing address and telephone number. 2. Any transferee, who pays the tax official more than $2,000, in any calendar year for transfers, shall maintain a reasonably accessible office within 50 miles of the courthouse of the county wherein the transferred executions were issued is located. The office shall be open to the public for at least eight hours per day for five days a week, official state holidays excepted. If you have attempted to collect the tax and, if not successful, and any applicable time limitation (12 or 24 months) has been met, you may take the recorded FiFas to the Sheriffs Office for Levy and Sale. You will be required to follow specific guidelines as set by the Sheriff *******PLEASE READ THE FOLLOWING PARAGRAPH CAREFULL y****** Investments in tax fifas and tax delinquent properties are speculative. Even after a tax sale, the property owner and second lien holder have certain rights, including the right of redemption. If you are unfamiliar with the law(s) regarding fifa transfers and tax sale, you are encouraged to seek legal advice. These Instructions only briefly describe the process, and are not to be read or taken as legal advice. Neither Fulton County nor any official or employee of Fulton County, including, without being limited to, the Tax Commissioner and Sheriff, guarantees that any fifa will be satisfied or that any property will be purchased at sale. You are not guaranteed or promised that you will recover your investment or that you will recover any funds in excess of your investment. INSTRUCTIONS FOR TRANSFER OF TAX (FlFA) EXECUTION Page 2

INTEREST ON DELINQUENT TAXES Calculation O.C.O.A. 48-2-40 controls the amount of interest owed from the date the tax was due until the date the tax was paid.

3 INTEREST ON DELINQUENT TAXES Calculation O.C.O.A controls the amount of interest owed from the date the tax was due until the date the tax was paid. Prior to HB 960, the interest rate was "1 % per month from the date the tax is due until the date the tax is paid". HB 960 changed the rate to "an annual rate equal to the bank prime loan rate as posted by the Board of Governors of the Federal Reserve System in statistical release H.l5 or any publication that may supersede it, plus 3%, to accrue monthly." It also provides that interest "shall begin to accrue from the date the tax is due until the date the tax is paid". 1n addition the "annual interest rate is determined for each calendar year based upon the first weekly posting of statistical release H.15 on or after January 1 of each calendar year." In addition the "annual interest rate is determined for each calendar year based upon the first weekly posting of statistical release H.15 on or after January 1 of each calendar year." Subsection (a) of Section 6 ofhb 960 provides that the Act becomes effective on July 1,2016 and subsection (b) provides that the new interest rates apply to interest which accrues on or after July 1, In applying these new interest provisions to an amount of delinquent taxes which became due at some point PR10R to July 1, 2016, it appears that the old interest (1 % per month) should be applied through June 30,2016. In applying these new interest provisions on or after July 1,2016, the new H.15 rate (as set by the first weekly posting after January 1, 2016) plus 3 % will apply until the tax is paid and satisfied or through December 31, Pursuant to O.C.O.A and (and the effective date provisions ofhb 960), interest will accrue monthly. This conforms to how the matter will be handled for state taxes. According to DOR Policy Bulletin SUT , the interest for state purposes will accrue monthly. As noted in the Bulletin, based upon these parameters, the interest rate as of July 1, 2016, for state purposes, will be 6.5 percent. Consequently, the calculation of the local rate should yield that same rate. Interest will accrue at the annual bank rate + 3% monthly or fraction thereof for Tax amounts per cycle of $1,000 or less. Interest will accrue at 1 % monthly or fraction thereof for Tax amounts per cycle on the amount which exceeds $1,000. If the amount remains delinquent on or after January 1,2017, then beginning on that date, the new H.15 rate (as set by the first weekly posting after January 1, 2017) plus 3% will apply until the tax is paid and satisfied or through December 31, (Note: to accommodate future changes, it may be wise use two decimal places when computing future rates.) INSTRUCTIONS FOR TRANSFER OF TAX (FlFA) EXECUTION Page 3

PENALTY Calculation O.C.G.A. 48-2-44 controls the amount of penalty owed on delinquent tax.

4 PENALTY Calculation O.C.G.A controls the amount of penalty owed on delinquent tax. Keep in mind that this penalty does NOT apply if another statute sets out a specific penalty for a specific situation. Prior to HB 960, under paragraph (1) of subsection (b) of that Code section, if an ad valorem tax remained unpaid within 90 days after the due date, then a penalty of 10% of the amount the tax due and unpaid is assessed. (Interest is also assessed but interest is covered above.) It is important to note that this 10% was a onetime occurrence. HB 960 made substantial changes to the penalty procedure. If an ad valorem tax remained unpaid: 1) Within 120 days after the due date, then a first penalty of 5% of the, amount the tax due and unpaid is assessed; 2) After 120 days of the date of imposition of the first penalty, a second penalty of5% of any tax amount remaining due is imposed; 3) After 120 days of the date of imposition of the secondpenalty, a third penalty of 5% of any tax amount remaining due is imposed; and 4) After 120 days of the date of imposition of the third penalty, a fourth penalty of 5% of any tax amount remaining due is imposed. It is important to note that there is an aggregate limit on the total amount of penalty that can be imposed under these four steps. The aggregate limit is 20% of the principal amount of the tax originally due. Subsection (a) of Section 6 of HB 960 provides that the Act becomes effective on July 1~ 2016 and subsection (b) provides that the new penalty rates apply to penalties which accrue on or after July 1,2016. Applying these new penalty provisions to an amount of unpaid taxes is less straight forward than applying the new interest provisions. While there are several reasonable ways the new law may be interpreted, the interpretation recommended here attempts to accomplish three important goals. FIRST, it attempts to be as taxpayer-friendly as possible. SECOND, it attempts to use a simple, bright line rule of application which is to base the application upon the actual accrual date of the penalty. Penalties are currently triggered at 90 days after the due date. If day 90 occurs PRIOR to July 1,2016, then the old rules apply. Ifday 90 occurs ON OR AFTER July 1,2016, then the penalty would accrue under the new rules. THIRD, it attempts to avoid potential lawsuits based upon retroactivity or other grounds. FOR THE 2016 TAX YEAR OR PRIOR TAX YEARS: 1) If the taxes became due at some point PRIOR to July 1,2016, and if the 90 days was reached prior to July 1,2016, then the old penalty (10% ifunpaid within 90 from the tax due date) should be applied. 2) If the taxes became due at some point PRIOR to July 1, 2016, and the 90 days was reached on or after July 1, 2016, then the new penalty structure applies. We view this as the more taxpayer friendly approach because, instead of perhaps applying the 10% penalty and then one or more of the new 5% penalties, this gives a taxpayer the opportunity to ONLY be subject to the first 5% penalty ifthe full delinquency is cured. FOR THE 2017 TAX YEAR & SUBSEQUENT TAX YEARS: If the taxes are levied and imposed for the 2017 tax year or any subsequent tax year, then new penalty structure (5% every 120 days, subject to aggregate 20% cap) should be applied. Revised 71/120i6 Fulton County Tax Commissioner's Office instructions FOR TRANSFER OF TAX (FlFA) EXECUTION Page 4

5 Requestor's/Transferee's Name: P...EQUEST TO TRANSFER TAX LIENS (Signed copy is Proof of Receipt) Requestor's Mailing Address: [If P.O. BOX -Must Obtain Physical Address or Print Address on Picture ID] (ADDI) (ADD2) (ADD3) CADD4) Phone Number: Fax Number: Address: Address 0 f Property: ParcelID Number: Years to be Transferred: ATLANTA EX Code Year FULTON EX Code Year SOLID WASTE EX Code Year PROFILE and TAX INQUIRY Screens Printed and Attached: Copy of Picture ID Attached: YES NO (Employee Signature) Date Received: **,': All liens are transferred under the "Caveat Emptor" (Buyer Beware) principle. Tax Commissioner Employees are not authorized to advise what steps or actions you mayor should take. Please seek legal advice from your attorney concerning any future action relating to Notices, Advertisements, Tax Sale by the Sheriff, Issuance of Tax Deeds, Foreclosures, Barring Right of Redemption, Quiet Title Procedures, etc. Please be advised that tax liens of senior citizens' homesteaded property shall be exempt from transfer. Tax liens of senior citizens' homesteaded property inadvertently transferred shall be returned to the Tax COmmissioner's Office and the amount remitted by the third party will be returned. Additionally, the Tax Commissioner reserves the right to reverse the transfer of tax liens as deemed necessary for the remitted amount. AGENT INITIALS Receipt offifas: Transfereel Agent: # Fifas: (Signature) Date: Transferee! Agent N arne: (Print Name)

TRANSMITTAL MEMORANDUM PROPERTY TAX OVERSIGHT RULES

PTO TM #16-01 TRANSMITTAL MEMORANDUM PROPERTY TAX OVERSIGHT RULES PURPOSE: This transmittal memorandum contains changes to the Department of Revenue Rules within the Property Tax Oversight Program. RULE