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Agenda 05/14/2019 Item #16K 5 (Application for Tax Deeds)05/14/2019 EXECUTIVE SUMMARY Recommendation to authorize application for tax deeds for twenty-eight (28) 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 twenty-eight (28) 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 13, 2018, the Board approved a notice to proceed to make application for tax deeds on all County-held tax certificates for the years 2014 through 2015 (tax years 2013 through 2014). That tax deed process is complete, and all eligible 2014 through 2015 tax certificates have either been paid, together with the associated costs incurred by the County, or placed on the Lands Available for Taxes List. This will be the first Board action relating to tax certificates since the 2014 through 2015 tax deed application process. The County currently holds twenty-eight (28) 2016 and 2017 tax certificates which are eligible for tax deed application. Of the above-referenced tax certificates, 25 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 $525.00 to $71,100.00. The unpaid taxes per certificate range from $5.06 to $7,247.23. 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 twenty-eight (28) properties, the funds due at time of application would be $31,500.00. 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 2015, 2016, and 2017, 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 2015 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 16.K.5 Packet Pg. 1814 05/14/2019 (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 twenty-eight (28) County tax certificates to tax deed sale, the total application costs will be $31,500.00. All unused fees paid in advance will be re funded 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. 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 2016 and 2017 tax certificates. Prepared by: Jennifer A. Belpedio, Assistant County Attorney ATTACHMENT(S) 1. Memorandum - Application for Tax Deeds (PDF) 2. Tax Collector Letter (PDF) 16.K.5 Packet Pg. 1815 05/14/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.5 Doc ID: 8863 Item Summary: Recommendation to authorize application for tax deeds for twenty-eight (28) County-held tax certificates and the forwarding of a written notice to proceed with tax deed applications to the Tax Collector. Meeting Date: 05/14/2019 Prepared by: Title: Legal Assistant/Paralegal – County Attorney's Office Name: Virginia Neet 05/03/2019 1:48 PM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 05/03/2019 1:48 PM Approved By: Review: County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 05/06/2019 8:58 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/06/2019 10:34 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/06/2019 11:27 AM Office of Management and Budget Laura Zautcke Additional Reviewer Completed 05/07/2019 7:54 AM County Manager's Office Heather Yilmaz Level 4 County Manager Review Completed 05/07/2019 10:09 AM Board of County Commissioners MaryJo Brock Meeting Pending 05/14/2019 9:00 AM 16.K.5 Packet Pg. 1816 16.K.5.a Packet Pg. 1817 Attachment: Memorandum - Application for Tax Deeds (8863 : 2016-2017 Tax Deed Applications) 16.K.5.a Packet Pg. 1818 Attachment: Memorandum - Application for Tax Deeds (8863 : 2016-2017 Tax Deed Applications) 16.K.5.a Packet Pg. 1819 Attachment: Memorandum - Application for Tax Deeds (8863 : 2016-2017 Tax Deed Applications) 16.K.5.b Packet Pg. 1820 Attachment: Tax Collector Letter (8863 : 2016-2017 Tax Deed Applications) 16.K.5.b Packet Pg. 1821 Attachment: Tax Collector Letter (8863 : 2016-2017 Tax Deed Applications)