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Agenda 02/13/2018 Item #16K602/13/2018 EXECUTIVE SUMMARY Recommendation to authorize application for tax deeds for thirty-six (36) County-held tax certificates and the forwarding of a written notice to proceed with tax deed applications to the Tax Collector. OBJECTIVE: That the Board of County Commissioners (Board) authorizes the County’s application for tax deeds for a total of thirty-six (36) County-held tax certificates, pursuant to §197.502(3), Fla. Stat., and authorizes the forwarding of a written notice to proceed with tax deed applications to the Tax Collector. CONSIDERATIONS: As fully outlined in the attached memorandum, the Board is statutorily required to provide the Tax Collector with a written notice to proceed in order to initiate applications for tax deeds for all tax certificates held by the County, except deferred payment tax certificates. Pursuant to §197.502(3), Fla. Stat., the County must make application for tax deeds on all properties with an assessed value of more than $5,000.00. Section 197.502(3), Fla. Stat., however, gives the County the discretion to apply for tax deeds on those properties assessed at less than $5,000.00. On May 24, 2016, the Board approved a notice to proceed to make application for tax deeds on all County-held tax certificates for the years 2012 through 2013 (tax years 2011 through 2012). That tax deed process is complete, and all eligible 2012 through 2013 tax certificates (excluding those automatically stayed by bankruptcy) have either been paid, together with the associated costs incurred by the County, or placed on the Lands Available for Taxes List. This will be the first Board action relating to tax certificates since the 2012 through 2013 tax deed application process. The County currently holds thirty-six (36) 2014 and 2015 tax certificates which are eligible for tax deed application. Of the above-referenced tax certificates, 10 are for properties assessed at less than $5,000.00. As such, tax deed application on these properties is discretionary with the County. The assessed values of the properties range from $825.00 to $10,000. The unpaid taxes per certificate range from $13.77 to $1,440.20. The costs associated with the tax deed application process, which includes application through issuance of a tax deed, are approximately $661.30 per property. These costs are itemized in the attached memorandum. Should the County make application on all thirty-six (36) properties, the cost would be approximately $23,806.80. There is currently $29,960 in unencumbered funds available in the Gen eral Fund for tax deed applications, so a budget amendment is unnecessary for the 2014 and 2015 tax deed applications. Additionally, some of the tax certificates may be redeemed before the County completes the tax deed application process. The Board has been and will continue to be reimbursed for all costs and delinquent taxes and interest on all County tax certificates when the property is sold at public sale. It is important to note that the County recovers not only the specific year of taxes when a tax deed is sold, but also all subsequent years of taxes for those properties (since it is a requirement of the sale) plus interest at the rate of 18% on the delinquent taxes. For example, if taxes are delinquent for 2014, 2015, and 2016, the minimum bid at the tax deed sale will include the taxes for all three years, even though the County had only initiated the notice to proceed for the 2014 tax certificate. However, there exists the possibility of no bidders at the tax sale, in which event, no sale is made and the property is placed on a list entitled “Lands Available for Taxes.” The County recovers none of its costs until the property is purchased. The County may, during the ninety (90) days after the public sale, purchase the property. If the propert y is not purchased within three (3) years after the date the property was offered for public sale, title to the property will escheat to the County and all tax certificates and liens will be canceled. 16.K.6 Packet Pg. 1597 02/13/2018 FISCAL IMPACT: Currently there is $29,960 in unencumbered funds budgeted for tax deed applications available in the General Fund. If the Board decides to take all thirty-six (36) County tax certificates to tax deed sale, the total application costs will be approximately $23,806.80. Accordingly, no additional funds should be required for the 2014 and 2015 tax deed application process. LEGAL CONSIDERATIONS: This item was prepared by the County Attorney’s Office and approved as to form and legality. Majority support is required for Board approval. JAB GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners authorizes a notice to proceed to the Tax Collector for tax deed applications for all County-held 2014 and 2015 tax certificates. PREPARED BY: Jennifer A. Belpedio, Assistant County Attorney ATTACHMENT(S) 1. Memorandum - Application for Tax Deeds (PDF) 2. Tax Collector Letter (PDF) 16.K.6 Packet Pg. 1598 02/13/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.6 Doc ID: 4799 Item Summary: Recommendation to authorize application for tax deeds for thirty-six (36) County-held tax certificates and the forwarding of a written notice to proceed with tax deed applications to the Tax Collector. Meeting Date: 02/13/2018 Prepared by: Title: Legal Assistant/Paralegal – County Attorney's Office Name: Virginia Neet 02/06/2018 11:56 AM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 02/06/2018 11:56 AM Approved By: Review: County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 02/06/2018 1:35 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/06/2018 1:46 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 02/06/2018 2:03 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/06/2018 4:59 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 02/06/2018 5:03 PM Board of County Commissioners MaryJo Brock Meeting Pending 02/13/2018 9:00 AM 16.K.6 Packet Pg. 1599 16.K.6.a Packet Pg. 1600 Attachment: Memorandum - Application for Tax Deeds (4799 : 2104-2015 Tax Deed Applications) 16.K.6.a Packet Pg. 1601 Attachment: Memorandum - Application for Tax Deeds (4799 : 2104-2015 Tax Deed Applications) 16.K.6.a Packet Pg. 1602 Attachment: Memorandum - Application for Tax Deeds (4799 : 2104-2015 Tax Deed Applications) 16.K.6.b Packet Pg. 1603 Attachment: Tax Collector Letter (4799 : 2104-2015 Tax Deed Applications) 16.K.6.b Packet Pg. 1604 Attachment: Tax Collector Letter (4799 : 2104-2015 Tax Deed Applications)