Agenda 11/08/2011 Item #16K11102011 Item 16.K.1.
EXECUTIVE SUMMARY
Recommendation to -authorize application for tax deeds for IIity -four (54) 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 fifty -four (54) 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 February 24, 2009, the Board approved a notice to proceed to make application for tax deeds
on all County -held tax certificates for the years 2003 through 2006 (tax years 2002 through
2005). That tax deed process is complete and all 2003 through 2006 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 2003 through 2006 tax
deed application process. The County currently holds fifty -four (54) 2007 and 2008 tax
certificates which are eligible for tax deed application. Of the above - referenced tax certificates,
14 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 $126,450.00. The average unpaid tax is $331.00 and 11 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 $432.50 per property. These costs are itemized in the
attached memorandum. Should the County make application on all fifty -four (54) properties, the
cost would be approximately $23,355.00. There is currently $40,000 in unencumbered funds
available in the General Fund for tax deed applications, so a budget amendment is unnecessary
for the 2007 and 2008 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 2007,
2008 and 2009, the minimum bid at the tax deed sale will include the taxes for all three years,
Packet Page -1487-
11/8/2011 Item 16.K.1.
Executive Summary
2007 and 2008 County Tax Certificates
Page 2
even though the County had only initiated the notice to proceed for the 2007 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 $40,000 in unencumbered funds budgeted for tax deed
applications available in the General Fund. If the Board decides to take all fifty -four (54) County
tax certificates to tax deed sale, the total application costs will be approximately $23,355.00.
Accordingly, no additional funds should be required for the 2007 and 2008 tax deed application
process.
LEGAL CONSIDERATIONS: This executive summary was prepared by the County Attorney
and is legally sufficient for Board action. A majority vote is required. -JAK
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioners authorizes a notice to
n
proceed to the Tax Collector for tax deed applications for all County -held 2007 and 2008 tax
certificates.
PREPARED BY: Jeffrey A. Klatzkow, County Attorney
Packet Page -1488-
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.1.
11/8/2011 Item 16.K.1.
Item Summary: Recommendation to authorize application for tax deeds for fifty -four (54)
County -held tax certificates and the forwarding of a written notice to proceed with tax deed
applications to the Tax Collector.
Meeting Date: 11/8/2011
Prepared By
Name: CrotteauKathynell
Title: Legal Secretary,County Attorney
10/26/20112:25:43 PM
Approved By
Name: GreenwaldRandy
Title: Management/Budget Analyst,Office of Management & B
Date: 10/27/20119:04:17 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 10/28/20112:44:34 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 10/31/2011 10:03:39 AM
Packet Page -1489-
11/8/2011 Item 16. K.1.
MEMORANDUM
DATE: October 26, 2011
TO: Board of County Commissioners
FROM: Jeffrey A. Klatzkow, County Attorney
RE: County -Held Tax Certificates; November 8, 2011 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. 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 February 24, 2009, the Board approved a notice to proceed to make application for tax deeds
on all County -held tax certificates for the years 2003 through 2006 (tax years 2002 through 2005).
That tax deed process is complete, and all 2003 through 2006 tax certificates have been paid,
together with all associated costs incurred by the County.
On October 24, 2011, the Collier County Tax Collector 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 fifty -four (54) 2007 and 2008 tax
certificates tax certificates which are eligible for tax deed application. Of the above - referenced
tax certificates, 14 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 fifty -four (54) tax certificates presently held by the County for years 2007 and 2008.
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 of October 24, 2011).
Packet Page -1490-
11/8/2011 Item 16.K.1.
October 26, 2011
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 $122.00 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 - $122.00 per tax certificate for title search.
2) Tax Collector's application fee - $75.00 per tax certificate.
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 $118.00 per parcel.
c) Mailing costs - approximately $27.50 per parcel. (This can vary greatly depending
upon the names associated with the parcel)
d) Sheriff service - $20.00 - $40.00 per parcel. (Again, this can vary greatly depending
upon the names associated with the parcel)
Total fees per parcel are approximately $432.50.
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.
Packet Page -1491-
11/8/2011 Item 16.K.1.
October 26, 2011
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 2007 and May
2008; 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
2007 and 2008 County -held tax certificates.
JAK
Attachment
cc: Larry H. Ray, Tax Collector
Packet Page -1492-
C.F. C.
Collier County Tax Collector
OCTOBER 24, 2011
11/8/2011 Item 16. K.1.
BOARD OF COUNTY COMMISSIONERS
HONORABLE FRED W COYLE, CHAIRMAN
COLLIER COUNTY GOVERNMENT CENTER
HARMON TURNER BUILDING
NAPLES, FL 34112
DEAR CHAIRMAN COYLE:
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 SEPTEMBER 30, 2011 FOLLOWS:
2007 CERTIFICATES - TAX YEAR,2006
INITIALLY ISSUED - MAY, 2007. 167 $12,575.53
REDEMPTIONS, CANCELLATIONS & T.D.A.'s (159)
BANKRUPTCY (12,430.28)
-0-
DEFERRED -0-
_0_
-0-
8 $ 145.25
2008 CERTIFICATES - TAX YEAR 2007
INITIALLY ISSUED - MAY, 2008 2,379 $4,528,470.67
REDEMPTIONS, CANCELLATIONS & T.D.A.'s (2,325)
BANKRUPTCY (4,514,406.90)
DEFERRED (1). (733.67)
-0- -0
53 $ 13,330.10
Courthouse Complex - B, Packet Page - 1493 - orida 34112 -4997
239 -252 -8171
www.colliertax.com
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BOARD OF COUNTY COMMISSIONERS
HONORABLE FRED W COYLE, CHAIRMAN
COLLIER COUNTY GOVERNMENT CENTER
HARMON TURNER BUILDING
NAPLES, FL 34112
DEAR CHAIRMAN COYLE:
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 SEPTEMBER 30, 2011 FOLLOWS:
2007 CERTIFICATES - TAX YEAR,2006
INITIALLY ISSUED - MAY, 2007. 167 $12,575.53
REDEMPTIONS, CANCELLATIONS & T.D.A.'s (159)
BANKRUPTCY (12,430.28)
-0-
DEFERRED -0-
_0_
-0-
8 $ 145.25
2008 CERTIFICATES - TAX YEAR 2007
INITIALLY ISSUED - MAY, 2008 2,379 $4,528,470.67
REDEMPTIONS, CANCELLATIONS & T.D.A.'s (2,325)
BANKRUPTCY (4,514,406.90)
DEFERRED (1). (733.67)
-0- -0
53 $ 13,330.10
Courthouse Complex - B, Packet Page - 1493 - orida 34112 -4997
239 -252 -8171
www.colliertax.com
11/8/2011 Item 16. K.1.
2009 CERTIFICATES - TAX YEAR 2008
INITIALLY ISSUED - MAY, 2009 679 $ 153,230.75
REDEMTPIONS, CANCELLATIONS & T.D.A.'S (593) (133,063.38)
BANKRUPTCY (5) (126.66)
DEFERRED -0- -0-
81 $ 20,040.71
SI ERE Y,
LA RY , TAX COLLECTOR
COLLIER CO NTY, FLORIDA
LHR /rej
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