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Agenda 09/13/2022 Item #16K 4 (Deed Applications 7 County Held Tax Certificates)09/13/2022 EXECUTIVE SUMMARY Recommendation to authorize the applications for tax deeds for seven (7) 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 seven (7) 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. The County currently holds three (3) 2018 tax-year certificates and four (4) 2019 tax-year certificates, which are eligible for tax deed application. Two (2) of the 2018 tax certificates and two (2) for the 2019 tax certificates are for the same property; thus, only a total of five (5) properties are involved. Of the above-referenced five (5) properties, four (4) assessed at less than $5,000.00. As su ch, tax deed applications on these four (4) properties are discretionary with the County. The assessed values of the four (4) properties assessing at less than $5,000.00 range from $438.00 to $970.00 while the unpaid real estate taxes per property range from $152.15 to $196.83 as of July 31, 2022. The remaining property assessed at $11,526.00 and has unpaid real estate taxes of $4,682.55 as of July 31, 2022. 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 costs are now $1,125.00 per property. A memorandum itemizing the fees and costs is attached. Should the County make application on all five (5) properties, the funds due at time of application would be $5,625.00. 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 2018 and 2019, 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 2019 tax certificate and therefore even though there are seven (7) total certificates only five (5) properties are involved. 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 seven (7) County tax certificates to tax deed sale, the total 16.K.4 Packet Pg. 3073 09/13/2022 application costs will be $5,625.00 because there are only five (5) properties involved. All unused fees paid in advance will be refunded once the tax deed is sold or redeemed. 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. -RTT GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners authorizes a notice to proceed to the Tax Collector for seven (7) tax deed applications for all County-held 2018 and 2019 tax-year certificates. PREPARED BY: Ronald T. Tomasko, Assistant County Attorney ATTACHMENT(S) 1. Memorandum 2018_2019 tax certificates (PDF) 2. Tax Collector Letter (PDF) 16.K.4 Packet Pg. 3074 09/13/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.4 Doc ID: 23002 Item Summary: Recommendation to authorize the applications for tax deeds for seven (7) County-held tax certificates and the forwarding of a written notice to proceed with tax deed applications to the Tax Collector. Meeting Date: 09/13/2022 Prepared by: Title: Legal Assistant – County Attorney's Office Name: Rosa Villarreal 08/09/2022 8:31 AM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 08/09/2022 8:31 AM Approved By: Review: County Attorney's Office Ronald Tomasko Additional Reviewer Completed 08/10/2022 3:48 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/10/2022 3:52 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/15/2022 9:34 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 08/22/2022 3:11 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 09/06/2022 6:10 PM Board of County Commissioners Geoffrey Willig Meeting Pending 09/13/2022 9:00 AM 16.K.4 Packet Pg. 3075 16.K.4.aPacket Pg. 3076Attachment: Memorandum 2018_2019 tax certificates (23002 : Recommendation to authorize application for tax deeds for seven County-held 16.K.4.aPacket Pg. 3077Attachment: Memorandum 2018_2019 tax certificates (23002 : Recommendation to authorize application for tax deeds for seven County-held 16.K.4.aPacket Pg. 3078Attachment: Memorandum 2018_2019 tax certificates (23002 : Recommendation to authorize application for tax deeds for seven County-held 16.K.4.b Packet Pg. 3079 Attachment: Tax Collector Letter (23002 : Recommendation to authorize application for tax deeds for seven County-held tax certificates)