Agenda 09/10/2024 Item #16K4 (Recommendation that the Board declines to authorize the application for tax deeds for nine (9) County-held tax certificates)16. K.4
09/10/2024
EXECUTIVE SUMMARY
Recommendation that the Board declines to authorize the application for tax deeds for nine (9) County -held
tax certificates.
OBJECTIVE: That the Board of County Commissioners (Board) declines to authorize the County's application
for tax deeds for a total of nine (9) County -held tax certificates, pursuant to § 197.502(3), Fla. Stat.
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. Section
197.502(3), Fla. Stat., however, gives the County the discretion to apply for tax deeds on those properties assessed
at $5,000 or less.
The County currently holds one (1) 2018 tax -year certificate, one (1) 2019 tax -year certificate, three (3) 2020 tax -
year certificates and four (4) 2021 tax -year certificates for a total of nine (9) certificates which are eligible for tax
deed application. The nine (9) certificates cover a total of four (4) properties. Of the above -referenced four (4)
properties, all four (4) are properties which assessed at less than $5,000 and are limited to oil, gas and mineral
rights. As such, tax deed application on these properties is discretionary with the County. The assessed values of
the four (4) properties range from $438 to $875 while the unpaid real estate taxes per property range from $15.43 to
$43.10.
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 remain $1,125 per property. A memorandum
itemizing the fees and costs is attached.
Should the County make an application on all four (4) properties, the funds due at time of application would be
$4,500. 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.
Based on years of prior experience with tax certificates relating to oil, gas and mineral rights, we believe that the
costs to file these certificates greatly exceeds any expected return.
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, as indicted
above, even though there are nine (9) total certificates only four (4) 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 (0001) Cost Center
103010. If the Board decides to take all nine (9) County -held tax certificates to tax deed sale, the total application
costs will be $4,500. 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
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16. K.4
09/10/2024
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioners (Board) declines to authorize the County's
application of four (4) tax deed applications for all nine (9) County -held 2018, 2019, 2020 and 2021 tax -year
certificates since the application costs far exceed the value of the properties and the unpaid real estate taxes.
PREPARED BY: Ronald T. Tomasko, Assistant County Attorney
ATTACHMENT(S)
1. Memorandum Tax Certificates 2018 through 2021 (PDF)
2. Tax Collector Letter (PDF)
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16. K.4
09/10/2024
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.4
Doc ID: 29784
Item Summary: Recommendation that the Board declines to authorize the application for tax deeds for nine (9)
County -held tax certificates.
Meeting Date: 09/10/2024
Prepared by:
Title: Legal Assistant — County Attorney's Office
Name: Rosa Villarreal
08/23/2024 10:02 AM
Submitted by:
Title: County Attorney — County Attorney's Office
Name: Jeffrey A. Klatzkow
08/23/2024 10:02 AM
Approved By:
Review:
County Attorney's Office
Office of Management and Budget
County Attorney's Office
Office of Management and Budget
County Manager's Office
Board of County Commissioners
Ronald Tomasko Level 2 Attorney of Record Review
Debra Windsor Level 3 OMB Gatekeeper Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Christopher Johnson OMB Reviewer
Amy Patterson Level 4 County Manager Review
Geoffrey Willig Meeting Pending
Completed
08/26/2024 9:07 AM
Completed
08/26/2024 11:02 AM
Completed
08/26/2024 11:14 AM
Completed
08/30/2024 5:52 PM
Completed
09/03/2024 3:33 PM
09/10/2024 9:00 AM
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16. K.4.a
MEMORANDUM
DATE: September 10, 2024
TO: Board of County Commissioners
FROM: Ronald T. Tomaso, Assistant County Attorney
RE: County -Held Tax Certificates: September 10, 2024 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 sets
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 one (1) 2018 tax -year certificate, one (1) 2019 tax -year certificate, three (3) 2020 tax -
year certificates and four (4) 2021 tax -year certificates which are eligible for tax deed application for
a total of nine (9) certificates. The nine (9) certificates cover a total of four (4) total properties. Of
the above -referenced four (4) properties, all four (4) are properties which assessed at less than
$5,000.00 and are limited to oil, gas and mineral rights. As such, tax deed application on these
properties is discretionary with the County.
It is not recommended that the Board of County Commissioners authorize tax deed applications for
the four (4) properties that have 2018, 2019, 2020 and 2021 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 $4,500.00 ($1,125.00 per property) to fund
the costs and fees described below:
1) Tax Collector- $250.00 per parcel for title search.
2) Tax Collector's application fee - $75.00 per parcel.
[ 19-COA-01933/1879272/1]
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16. K.4.a
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 portions 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 a check 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.
The Board of County Commissioners should decline to take action and not provide the Tax Collector with
a written notice to proceed to making applications for tax deeds for all eligible 2018, 2019, 2020 and 2021
tax -year County -held tax certificates since the application costs far exceed the value of the properties and
the unpaid real estate taxes.
RTT
Attachment
cc: Rob Stoneburner, Tax Collector
[ 19-COA-01933/1879272/1 ]
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Collier County Tax Collector
DULY 8, 2024
BOARD OF COUNTY COMMISSIONERS
HONORABLE CHRIS HALL
COLLIER COUNTY GOVERNMENT CENTER
HARMON TURNER BUILDING
NAPLES, FLORIDA 34112
DEAR CHAIRMAN HALL:
FLORIDA STATUTE 197.502 STATES THAT THE COUNTY SHALL APPLY FOR A TAX DEED ON ALL COUNTY -
HELD CERTIFICATES ON PROPERTY VALUED AT $5,000 OR MORE ON THE PROPERTY APPRAISER'S MOST
RECENT ASSESSMENT ROLL, EXCEPT DEFERRED PAYMENT TAX CERTIFICATES, AND MAY APPLY FOR TAX
DEEDS ON THOSE CERTIFICATES ON PROPERTY VALUED AT LESS THAN $5,000 ON THE PROPERTY
APPRAISER'S MOST RECENT ASSESSMENT ROLL TWO YEARS AFTER APRIL 1ST OF THE YEAR OF ISSUANCE
OF THE CERTIFICATES OR AS SOON THEREAFTER AS IS REASONABLE. A SUMMARY OF TAX
CERTIFICATES SO INVOLVED AS OF JULY 8, 2024 FOLLOWS:
2019 CERTIFICATES - TAX YEAR 2018
INITIALLY ISSUED - JUNE, 2019
OUT OF BANKRUPTCY - ISSUED JUNE,2019
REDEMPTIONS, CANCELLATIONS & T.D.A'S
376 $ 29,772.08
(375) $ (29,756.65)
1 15.43
2020 CERTIFICATES - TAX YEAR 2019
INITIALLY ISSUED - JUNE 2020 222 $ 14,562.74
OUT OF BANKRUPTCY - ISSUED JUNE,2020
REDEMPTIONS, CANCELLATIONS & T.D.A'S (221) $ (14,522.30)
1 $ 40.44
3291 E. Tamiami Trail, Naples, FL 34112-5758
Phone 239-252-8171 colhertaxcollector.com
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2021 CERTIFICATES - TAX YEAR 2020
INITIALLY ISSUED - JUNE 2021
OUT OF BANKRUPTCY - ISSUED JUNE, 2021
REDEMPTIONS, CANCELLATIONS & T.D.A'S
2022 CERTIFICATES - TAX YEAR 2021
INITIALLY ISSUED - JUNE 2022
OUT OF BANKRUPTCY - ISSUED JUNE, 2022
REDEMPTIONS, CANCELLATIONS & T.D.A'S
SINCERELY,
ROB STONEBURNER, TAX COLLECTOR
COLLIER COUNTY, FLORIDA
RS/KAB
CC: JEFF KLATZKOW - COUNTY ATTORNEY
107 $ 10,511.29
(104) $ (10,387.49)
3 123.80
209 $ 12,282.64
(204) $ ($11,772.78)
5
$ 509.86
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