To: Board of Supervisors
From: Auditor-Controller
Agenda Section: Consent
SUBJECT:
title
Distribution of Excess Proceeds from Tax Auction of November 2018
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the distribution of excess proceeds resulting from the November 2018 public auction of delinquent property tax parcels to the claimants, and in the amounts, presented in Attachment 1.
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SOURCE OF FUNDING:
Excess proceeds from the tax auction of November 2018 are held in Fund 3680 - Delinquent Tax Sales Trust
DISCUSSION:
During November 2018, the Humboldt County Treasurer-Tax Collector’s Office sold a number of delinquent property tax parcels using an internet-based public auction website. The date of recordation of the last tax deeds for this auction was December 18, 2018. Some of the parcels sold for more than the amount required to pay the parcel’s back taxes and the share of the cost in preparing for and conducting the auction. This excess of sales price over taxes and expenses is referred to as excess proceeds and is available in priority to: (1) lienholders of record prior to the recordation of the tax deed to the purchaser, with priority given to the earliest recorded lien; and (2) any person(s) with title of record to all or any portion of the property prior to recordation of the tax deed to the purchaser. These parties of interest have one (1) year from the date of the recordation of the tax deed to the purchaser to file a claim for excess proceeds.
The Humboldt County Auditor-Controller’s Office has completed a review of the claims for excess proceeds corresponding to the December 18, 2018 recordation date and has prepared a recommended distribution schedule which is set forth in Attachment 1. Upon the Board’s approval of the recommended distribution schedule, the excess proceeds will be held an additional ninety (90) days to allow for protests or competing claims.
FINANCIAL IMPACT:
The claims currently recommended for payment represent Fifty-Eight Thousand Seven Hundred Dollars and Twenty Cents ($58,700.20) of excess proceeds from the November 2018 tax auction. If tax auction funds remain after resolution of all excess proceeds, those claims will be transferred to the property tax loss reserve fund (3010). Approval of the recommended distribution of excess proceeds resulting from the November 2018 tax auction will not impact the Humboldt County General Fund.
STRATEGIC FRAMEWORK:
The recommended action supports the Board of Supervisors’ Strategic Framework by managing county resources to ensure sustainability of services.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose to reject any or all of the recommended claims, whereupon the claimants would have ninety (90) days in which to appeal that rejection.
ATTACHMENTS:
1. Recommended Distribution of Excess Proceeds
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A