Agenda 03/25/2014 Item #16K1 3/25/2014 16.K.1.
EXECUTIVE SUMMARY
Recommendation to authorize application for tax deeds for thirty-seven (37) 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-seven (37) 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 November 9, 2011, the Board approved a notice to proceed to make application for tax deeds
on all County-held tax certificates for the years 2007 and 2008 (tax years 2006 and 2007). Given
the low number and value of tax certificates during these years, the County Attorney elected to
hold off on this process until a sufficient number of outstanding tax certificates had accumulated
which reduced administrative costs. That tax deed process is complete, and all 2007 and 2008
tax certificates have been paid,together with all associated costs incurred by the County.
This will be the first Board action relating to tax certificates since the 2007 and 2008 tax deed
application process. The County currently holds thirty-seven (37) 2009 through 2011 tax
certificates which are eligible for tax deed application. Of the above-referenced tax certificates,
17 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
$350.00 to $46,350.00. The average unpaid tax is $227.64 and four of the properties involve oil,
gas and mineral rights.
The costs associated with the tax deed application process, which includes application through
issuance of a tax deed, are approximately $644.68 per property. These costs are itemized in the
attached memorandum. Should the County make application on all thirty-seven (37) properties,
the cost would be approximately $23,853.16. There is currently $30,000 in unencumbered funds
available in the General Fund for tax deed applications, so a budget amendment is unnecessary
for the 2009 through 2011 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 2009,
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2010 and 2011, 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 2009 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: Currently there is $30,000 in unencumbered funds budgeted for tax deed
applications available in the General Fund. If the Board decides to take all thirty-seven (37)
County tax certificates to tax deed sale, the total application costs will be approximately
$23,853.16. Accordingly, no additional funds should be required for the 2009 through 2011 tax
deed application process.
LEGAL CONSIDERATIONS: The County Attorney has approved this item 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 2009 through 2011 tax
certificates.
PREPARED BY: Jennifer A. Belpedio, Assistant County Attorney
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3/25/2014 16.K.1 .
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.K.16.K.1.
Item Summary: Recommendation to authorize application for tax deeds for thirty-seven
(37) County-held tax certificates and the forwarding of a written notice to proceed with tax
deed applications to the Tax Collector.
Meeting Date: 3/25/2014
Prepared By
Name:NeetVirginia
Title:Legal Assistant/Paralegal, CAO Office Administration
3/5/2014 9:56:41 AM
Submitted by
Title:Assistant County Attorney, CAO General Services
Name:BelpedioJennifer
3/5/2014 9:56:42 AM
Approved By
Name: BelpedioJennifer
Title: Assistant County Attorney, CAO General Services
Date: 3/5/2014 11:13:56 AM
Name: IsacksonMark
Title: Director-Corp Financial and Mngmt Sys, Office of Management&Budget
Date: 3/13/2014 10:14:42 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 3/13/2014 3:13:12 PM
Name: OchsLeo
Title: County Manager,County Managers Office
Date: 3/14/2014 3:12:34 PM
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MEMORANDUM
DATE: March 5, 2014
TO: Board of County Commissioners
FROM: Jeffrey A. Klatzkow, County Attorney
RE: County-Held Tax Certificates; March 11, 2014 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, Florida
Statutes, provides that if there is no buyer of a tax certificate, the tax certificate is issued to the
County at the maximum rate of interest(18%).
Section 197.502, Florida Statutes, states that the County shall make application for a tax deed on
all certificates on property 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 provide 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 of record, the tax certificate shall be null and
void and the Tax Collector shall cancel the tax certificate.
On November 9, 2011, the Board approved a notice to proceed to make application for tax deeds
on all County-held tax certificates for the years 2007 and 2008 (tax years 2006 and 2007). That
tax deed process is complete, and all 2007 and 2008 tax certificates have been paid, together with
all associated costs incurred by the County.
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 Tax Collector's letter is attached).
The County currently holds thirty-seven(37)2009 through 2011 tax certificates which are eligible
for tax deed application. Of the above-referenced tax certificates, 17 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 thirty-seven (37)tax certificates presently held by the County for years 2009 through 2011.
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(Tax Collector's letter).
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March 5,2014
Board of County Commissioners
County-Held Tax Certificates
Page 2
b) The Board of County Commissioners gives a written notice to proceed to the Tax Collector to
initiate an "Application for Tax Deed" for the tax certificates held by the County,
accompanied by a check in the amount of$125.00 per certificate for title search, and pursuant
to §197.502, Florida Statutes, the Tax Collector shall be allowed a tax deed application fee of
$75.00 per certificate.
c) The Tax Collector files the application for tax deed with the Clerk on behalf of the County.
d) The County deposits the following fees and costs with the following entities when the notice
to proceed is given to the Tax Collector:
1) Tax Collector- $125.00 per parcel for title search.
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:
a) Clerk's fees - $60.00 per parcel for processing application (includes sale, issuance of
tax deed,preparation of deed and disbursement of funds).
b) Advertising costs-approximately $142.68 per parcel.
c) Certified letters - approximately $103.50 per parcel. (This can vary greatly depending
upon the names associated with the parcel)
d) Sheriff's service — approximately $120.00 per parcel. (Again, this can vary greatly
depending upon the names associated with the parcel)
e.) Recording fee- $18.50 average
Total fees per parcel are approximately $644.68
e.) 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.
f.) 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.
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March 5,2014
Board of County Commissioners
County-Held Tax Certificates
Page 3
g.) Delivery and posting of notices of the tax deed sale.
h.) 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.
i) 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.
The above referenced tax certificates were issued to the County between May 2009 and May
2011; 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 2009 through 2011 County-held tax certificates.
JAB
Attachment
cc: Larry H. Ray, Tax Collector
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IcV ; . � C.F.C.
Collier County Tax Collector
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FEBRUARY 19, 2014 .?(�11
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BOARD OF COUNTY COMMISSIONERS
HONORABLE TOM HENNING, CHAIRMAN
COLLIER COUNTY GOVERNMENT CENTER
HARMON TURNER BUILDING •
NAPLES, FL 34112
DEAR CHAIRMAN HENNING:
FLORIDA STATUTE 197.502 STATES THAT THE COUNTY SHALL MAKE APPLICATION FOR TAX DEED
ON ALL CERTIFICATES ON PROPERTY VALUED AT $5,000 OR MORE ON THE PROPERTY APPRAISER'S
ROLL, EXCEPT DEFERRED PAYMENT TAX CERTIFICATES, AND MAY MAKE APPLICATION ON THOSE
CERTIFICATES ON PROPERTY VALUED AT LESS THAN $5, 000 ON THE PROPERTY.APPRAISER'S ROLL,
TWO YEARS AFTER APRIL 1 OF THE YEAR OF ISSUANCE OF THE CERTIFICATES. A SUMMARY OF
TAX CERTIFICATES SO INVOLVED AS OF FEBRUARY 19, 2014 FOLLOWS:
2009 CERTIFICATES - TAX YEAR 2008
INITIALLY ISSUED - MAY, 2009 2, 365 $4, 624, 169.65
REDEMPTIONS, CANCELLATIONS & T.D.A. 's (2, 340) (4, 616, 300.52)
BANKRUPTCY (4) (46.52)
DEFERRED -0- -0-
21 $ 7,822.61
2010 CERTIFICATES - TAX YEAR 2009
INITIALLY ISSUED - MAY, 2010 679 $ 153,230.75
REDEMPTIONS, CANCELLATIONS & T.D.A. 's (664) (151, 752.30)
BANKRUPTCY (4) (48.32)
DEFERRED -0- -0-
11 $ 1, 430.13
3291 East Tamiami T"^" ATn�Ino 0..a.,4•1 34112-5758
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2011 CERTIFICATES - TAX YEAR 2010
INITIALLY ISSUED - MAY, 2011 263 $ 25, 475. 14
REDEMTPIONS, CANCELLATIONS & T.D.A. 'S (254) (25, 194 .52)
BANKRUPTCY -0- -0-
DEFERRED -0- -0-
9 $ 280. 62
SINCERELY,.
LARK -H Y, TAX COLLECTOR
COLLIER COUNTY, FLORIDA
LHR/rej
CC: JEFF KLATZKOW - COUNTY ATTORNEY
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