Agenda 06/09/2020 Item #16K3 (Application for 18 Tax Deeds)06/09/2020
EXECUTIVE SUMMARY
Recommendation to authorize application for tax deeds for eighteen (18) 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 eighteen (18) County-held tax certificates, pursuant to §197.502(3), Fla. Stat.,
and authorizes the forwarding of a written notice to proceed with tax deed application s 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.
The County currently holds eighteen (18) 2017 tax-year certificates, which are eligible for tax deed
application. Of the above-referenced tax certificates, all 18 certificates 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 $578.00 to $4,500.00. The unpaid taxes per certificate range
from $11.42 to $74.55.
Amendments to Chapter 197, Fla. Stat., during the 2018 Legislative Session (HB 1383), require the costs
associated with the tax deed application process, which includes application through issuance of a tax
deed, to be paid at time of application. The Tax Collector’s Office has advised that this cost is now
$1,125.00 per property. A memorandum itemizing the fees and costs is attached.
Should the County make application on all eighteen (18) properties, the funds due at time of application
would be $20,250.00. All unused fees paid in advance will be refunded, and 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 2017 and 2018, the minimum bid at the tax deed sale will
include the taxes for both years, even though the County had only initiated the notice to proceed for the
2017 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 property 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.
FISCAL IMPACT: Sufficient funding for tax deed applications is provided in General Fund cost center
001-103010. If the Board decides to take all eighteen (18) County tax certificates to tax deed sale, the
total application costs will be $20,250.00. All unused fees paid in advance will be refunded once the tax
deed is sold or redeemed.
16.K.3
Packet Pg. 1715
06/09/2020
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 2017 tax-year certificates.
PREPARED BY: Jennifer A. Belpedio, Assistant County Attorney
ATTACHMENT(S)
1. Memorandum (PDF)
2. Tax Collector Letter (PDF)
16.K.3
Packet Pg. 1716
06/09/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.3
Doc ID: 12514
Item Summary: Recommendation to authorize application for tax deeds for eighteen (18) County-
held tax certificates and the forwarding of a written notice to proceed with tax deed applications to the
Tax Collector.
Meeting Date: 06/09/2020
Prepared by:
Title: Legal Assistant – County Attorney's Office
Name: Rosa Villarreal
05/28/2020 4:13 PM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
05/28/2020 4:13 PM
Approved By:
Review:
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/02/2020 9:05 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/02/2020 9:11 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/02/2020 11:19 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 06/02/2020 12:47 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/03/2020 8:43 AM
Board of County Commissioners MaryJo Brock Meeting Pending 06/09/2020 9:00 AM
16.K.3
Packet Pg. 1717
MEMORANDUM
DATE: June 9, 2020
TO: Board of County Commissioners
FROM: Jennifer A. Belpedio, Assistant County Attorney
RE: County-Held Tax Certificates; June 9, 2020 BCC Agenda
Real estate taxes are payable on November 1 of each year and, if not paid by April 1 of the next
year, the taxes become delinquent. The Tax Collector, after publication of the Delinquent Tax
List, conducts a sale of tax certificates on the delinquent tax parcels. Section 197.432, Fla. Stat.,
provides that if there is no buyer of a tax certificate, the tax certificate is issued (struck) to the
County at the maximum rate of interest (18%).
Section 197.502, Fla. Stat., states that the County shall make application for a tax deed on all
certificates on properties with an assessed value of $5,000.00 or more two (2) years after April 1
of the year of issuance of the certificates, or as soon thereafter as is reasonable. Florida Statutes
also set forth a limitation on liens of tax certificates and provides that after the expiration of seven
(7) years from the date of issuance of a tax certificate, if a tax deed has not been applied for and
there is no other administrative or legal proceeding, including a bankruptcy, of record, the tax
certificate shall be null and void and the Tax Collector shall cancel the tax certificate.
The Collier County Tax Collector has notified the Board of County Commissioners, pursuant to
Section 197.502, Florida Statutes, of all tax certificates held in the name of the County that were
eligible for the County’s application for tax deed (a copy of the printout is attached). The County
currently holds eighteen (18) 2017 tax-year certificates which are eligible for tax deed application.
Of the above-referenced tax certificates, all 18 are for properties assessed at less than $5,000.00.
As such, tax deed application on these properties is discretionary with the County.
It is recommended that the Board of County Commissioners authorize tax deed applications for
the eighteen (18) 2017 tax-year certificates presently held by the County.
The statutory procedure for the County to apply for a tax deed is as follows:
a) The Tax Collector gives notice to the Board of all tax certificates held by the County, which
are now subject to tax deed application.
b) The Board of County Commissioners gives a written notice to proceed to the Tax Collector to
initiate an “Application for Tax Deed” (Form DR-512) for the tax certificates held by the
County, accompanied by a check in the amount $20,250.00 ($1,125.00 per property) to fund
the costs and fees described below:
1) Tax Collector - $250.00 per parcel for title search.
16.K.3.a
Packet Pg. 1718 Attachment: Memorandum (12514 : Recommendation to authorize application for tax deeds for eighteen (18) County-held tax certificates)
June 9, 2020
Board of County Commissioners
County-Held Tax Certificates
Page 2
[19-COA-01933/1540682/1]
2) Tax Collector's application fee - $75.00 per parcel.
3) Clerk - fees for processing the application after the Tax Collector completes the title
search. This includes costs for processing, advertising, certified letters, Sheriff’s service,
and recording. These fees are estimated at $800.00 and are paid at time of application.
Any unused portion of the $800.00 will be refunded once the sale or redemption of the
Tax Deed is complete.
Total fees per parcel are approximately $1,125.00.
c) The Tax Collector files the application for tax deed with the Clerk on behalf of the County.
d.) The Tax Collector prepares and furnishes to the Clerk for each parcel a certificate showing a
list of all tax certificates held by individuals, all County-held tax certificates, all omitted years'
taxes and the interest earned by each tax certificate or omitted years' taxes as of the date of the
tax deed application.
e.) Upon receipt of a completed tax deed application, the Tax Collector shall have an abstract for
title search made which provides the ownership and encumbrance reports for a minimum of
twenty (20) years for each parcel, a list of all tax certificates and omitted years' taxes on each
parcel, and the names and addresses of all persons or firms that the Clerk is required to notify
prior to the tax deed sale.
f.) Delivery and posting of notices of the tax deed sale.
g.) A public tax deed sale is then held:
1) A tax deed is issued immediately upon receipt of full payment of all applicable fees, costs,
the amount of taxes owed, interest on the taxes, and all Tax Collector's fees.
2) If no bids are received at the tax deed sale, the property is entered on a list entitled “Lands
Available for Taxes.”
3) After ninety (90) days, the County can purchase those properties on the list of Lands
Available for Taxes for the opening bid amount.
4) If the property on the list of Lands Available for Taxes is not purchased after 3 years, the
land then escheats to the County and becomes County property.
h.) The Clerk immediately disburses the monies collected from the tax deed sale to the Tax
Collector. The Tax Collector then issues checks to the Board of County Commissioners for
reimbursement of the costs and the taxes recovered less the Tax Collector’s fee, plus the 18%
interest on the tax certificates.
16.K.3.a
Packet Pg. 1719 Attachment: Memorandum (12514 : Recommendation to authorize application for tax deeds for eighteen (18) County-held tax certificates)
June 9, 2020
Board of County Commissioners
County-Held Tax Certificates
Page 3
[19-COA-01933/1540682/1]
The above referenced tax certificates were issued to the County May 2018; therefore, the Board of
County Commissioners should take appropriate action to provide the Tax Collector with a written
notice to proceed by making applications for tax deeds for all eligible 2017 County-held tax
certificates.
JAB
Attachment
cc: Larry H. Ray, Tax Collector
16.K.3.a
Packet Pg. 1720 Attachment: Memorandum (12514 : Recommendation to authorize application for tax deeds for eighteen (18) County-held tax certificates)
16.K.3.b
Packet Pg. 1721 Attachment: Tax Collector Letter (12514 : Recommendation to authorize application for tax deeds for eighteen (18) County-held tax certificates)