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HomeMy Public PortalAboutAbatement-Various Properties interoffice MEMORANDUM To: Mayor and City Council Members From: B. Allen Garner, City Counselor Date: October 15, 1999 Subject: Abatement of Special Tax Bills A request has been made by the County Collector for the City to abate Tax Bills on 715 E. Miller, 1222 W. High, 709 Walsh. and 113-115 E. Ashley. .All four of these properties were offered for sale the third time to anyone who wished to bid upon the property. Bidders bought the four pieces of property, three of which went to Habitat for Humanity; one went to a private individual. Each of the parcels was bought for $200.00, which was only sufficient to cover the costs directly associated with the sale of the property. The sales produced no money towards the tax liens against the property. The Council in the past has approved full abatement of taxes on property being rehabilitated and re-utilized by Habitat for Humanity based on a view of community improvement and a long-term view that the City would eventually receive more money in taxes from the new structures than it could anticipate from a vacant parcel. The sale to a private individual with no known plans for re-use does not provide the same incentive, nor are there any restrictions on the use of the property by that individual. Under the terms of a third offering sale, the buyer is entitled to a deed immediately, and no rieht of redemption exists in the original owner. In discussing these sales with the County Collector, another portion of the statutes was discussed which provides that either the County Commission or the City Council may authorize an individual to attend a third offering sale for the purpose of bidding the amount of the tax liens. If that is the highest bid received, no money changes hands and the taxing entity that authorized the bid, receives the deed as trustee for all tax entities with a lien against the property. The public entity may then place the property for sale in the normal course of business (i.e., not on the courthouse steps) in an attempt to maximize the return on the property. This procedure may be advantageous to the City and the County, particularly where the City has incurred significant expenses in cleaning up the property or demolishing structures. It is too late to utilize this procedure on these sales, but it may be worthy of consideration prior to next year's tax sale. The County Collector has indicated there will be third offering sales next August, and any decision on participation will need to be made by July, 2000 if the City or County Commission plans to take advantage of the statutory procedure. As to the current abatements, it would appear appropriate to abate taxes on these properties through August 31, 1999, and focus any corrective action on next year's sale. 4 William"Skip"Rich r{�I iv'' Collector of Revenue I.' Kathy Lewis (573)634-9124 L l rat Chief Deputy .� �4j,y Bruce"BIH"Frates 'S " -1 ly) Asst.Chief Deputy cgL 1: a 9 itfo ii t 41 ' Ir 11 Ip�.4lai �/ ?- —1-3111 _..11.10111;F:___ COLE COUNTY TAX COLLECTOR 311 East High Street Courthouse Annex,First Floor Jefferson City,MO 65101 September 30, 1999 Rich Mays, City Manager City of Jefferson 320 E. McCarty St. Jefferson City, MO 65101 Re: 715 E. Miller, 1222 W. High, 709 Walsh, 113-115 E. Ashley Dear Rich, I have enclosed copies of account data on the above referenced properties. These properties have city liens totaling $27,208.11. Previously, we had offered these properties for sale a number of years, but had no buyers. This year Habitat for Humanity purchased 3 of the properties and a private individual purchased the fourth one. The County abated the tax bills for all years up to and including the liens for 1999, as three of the properties are now tax exempt. The other property was sold for less than it cost us to advertise it in the newspaper. At least now the properties will now be turned back into productive taxpaying entities. Would you please assure that the City abates the amount of liens as indicated on the attachment. If you have any questions, please give me a call. Sincerely cr=c. •L, ‘sela William 'S 'p" Ric Collector CC: PhyllisPowell, City Clerk i ' Attachment to City Lien letter, addressed to Rich Mays, dated 9-30-99 Address Parcel # Special Tax Bill #'s 715 E. Miller St. 11 04 17 0002 003 01 YEAR LIEN AMOUNT 1994 $ 5,931.54 14465, 14672, 14695 „ii0/ 1995 $ 106.12 14748 1996 $ 215.91 14786, 14808 1997 $ 214.74 14895, 14919 1998 $ 109.20 14972 1999 $ 145.86 15005 TOTAL $ 6,723.37 1t) 1222,1igh St. 10 01 01 0004 008 024 1994 $ - N/A \y,,V,1 1995 $ 5,349.04 14735, 14739, 14757 1996 $ 196.10 14780, 14802 /032 032 1997 $ 184.17 14891, 14915 1998 $ 278.02 14955, 14969, 14989 1999 $ 182.21 15016, 15045 j 5-0 78 TOTAL $ 6,189.54 709 Walsh St. 11 04 17 0002 009 029 L, 1994 $ 4,834.99 14466 /0( ,ac\ f 1995 $ 101.16 14745 iq7/ 1 V }� 1996 $ 557.95 14801, 14775, 3rd bill unreadable .' - 1997 $ 230.72 14887, 14912 awl- ' ° 7Z° 1998 $ 198.08 14962, 14970 )114,2Y 1999 $ 330.55 14993, 15019, 15042, 15068 TOTAL $ 6,253.45 113-115 E. Ashley 11 03 07 0004 030 015 5 6-e. 9}4-9('4 $ 7,096.50 14464, 14577, 14673 19 0 601 g ) 1995 $ 116.33 14742 • I/ VF' 1996 $ 282.00 14807, 14792 7 `� 110 i 1997 $ 110.00 14916 1 itW? 1998 $ 234.15 14963, 14987 1999 $ 202.77 15012, 15056 TOTAL $ 8,041.75 f 71310/9 GRAND TOTAL $ 27,208.11 MO ST 140.250 Page 1 V.A.M.S. 140.250 VERNON'S ANNOTATED MISSOURI STATUTES TITLE X. TAXATION AND REVENUE CHAPTER 140. COLLECTION OF DELINQUENT TAXES GENERALLY REAL ESTATE TAXES • • Copr..© West Group 1999. All rights reserved. Current through End of 1998 2nd Reg. Sess. 140.250. Third offering of delinquent lands and lots--subsequent sale-- collector's deed • 1. Whenever any lands have been or shall hereafter be offered for sale for delinquent taxes, interest, penalty and costs by the collector of the proper county for any two successive years and no person shall have bid therefor a sum equal to the delinquent taxes thereon, interest, penalty and costs provided by law, then such county collector shall at the next regular tax sale of lands for delinquent taxes sell same to the highest bidder, and there shall be a ninety- day period of redemption from such sales as specified in section 140.405. 2. No certificate of purchase shall issue as to such sales, but the purchaser at such sales shall be entitled to the issuance and delivery of a collector's deed upon completion of title search action as specified in section 140.405. 3. If any lands or lots are not sold at such third offering, then the collector, in his discretion, need not again advertise or offer such lands or lots for sale more often [FN1] than once every five years after the third offering of such lands or lots, and such offering shall toll the operation of any applicable statute of limitations. 4. A purchaser at any sale subsequent to the third offering of any land or lots shall be entitled to the immediate issuance and delivery of a collector's deed and there shall be no period of redemption from such sales; provided, however, before any purchaser at a sale to which this section is applicable shall be entitled to a collector's deed it shall be the duty of the collector to demand, and the purchaser to pay, in addition to his bid, all taxes due and unpaid on such lands or lots that become due and payable on such lands or lots subsequent to the date of the taxes included in such advertisement and sale. 5. In the event the real purchaser at any sale to which this section is applicable shall be the owner of the lands or lots purchased, or shall be obligated to pay the taxes for the nonpayment of which such lands or lots were sold, then no collector's deed shall issue to such purchaser, or to anyone acting for or on behalf of such purchaser, without payment to the collector of such additional amount as will discharge in full all delinquent taxes, penalty, interest and costs. CREDIT(S) 1988 Main Volume (R.S.1939, § 11130. Amended by L.1984, S.B. No. 707, p. 431, § 1.) 1999 Electronic Update (Amended by L.1998, S.B. No. 778, § A.) [FNII Word "oftener" appears in original rolls. <General Materials (GM) - References, Annotations, or Tables> HISTORICAL AND STATUTORY NOTES Copr. © West 1999 No Claim to Orig. U.S. Govt. Works MO ST 140.250 Page 2 1999 Electronic Update 1998 Legislation L.1998, S.B. No. 778, § A, in subsec. 1, substituted "a ninety-day period of redemption from such sales as specified in section 140.405" for "no period of redemption from such sales". 1988 Main Volume The 1984 amendment, in subsec. 2, substituted "issuance and delivery of a collector's deed upon completion of title search action as specified in section 140.405, RSMo" for "immediate issuance and delivery of a collector's deed", and in subsec. 4, substituted "become" for "became" preceding "due and payable". Prior Laws and Revisions: L.1939, p. 878, § 2. L.1939, p. 850, § 9953a. L.1933, p. 425, § 2. LAW REVIEW AND JOURNAL COMMENTARIES Adverse possession, summary of Missouri Supreme Court decisions for 1950. Willard L. Eckhardt. 16 Mo.L.Rev. 372 (1951). Tax sales and titles. Robert S. Easten, 17 Mo.L.Rev. 410 (1952). LIBRARY REFERENCES 1988 Main Volume Taxation 0673, 676. C.J.S. Taxation §§ 810, 812. NOTES OF DECISIONS Consideration 2 that at such offering there should be no redemption Liability of purchaser I period and purchaser should receive deed on Notice 4 payment of subsequent taxes only. State ex rel. Recording of deed 3 McGhee v. Baumann (Sup. 1942) 160 S.W.2d 697, Title search 5 349 Mo. 232. I. Liability of purchaser 2. Consideration The legislature in enacting the Jones-Munger Act intended that tax sale purchaser should pay prior The adequacy of consideration rule is inapplicable taxes on any tax sale, and by 1939 revision of this to the Jones-Munger law; accordingly, any tax section the legislature intended to change the law purchaser at the third sale is immune from attack on only as to the sale on the third offering and intended the ground of inadequacy of consideration, and therefore the prudent purchaser whosatisfies himself that the sale was regular in alt other respects may be confident he is receiving a fully marketable title; overruling Bussen Realty Co. v. Benson, 349 Mo. 58, 159 S.W.2d 813 (banc 1942) and related cases. Powell v. St. Louis County (Sup. 1977) 559 S.W.2d 189. The Jones-Munger Tax Law contemplates a sale for a consideration sufficient to pay delinquent taxes, interest and charges and a sale for an unconscionably inadequate sum, which is insufficient to pay such taxes, interest and Copr. ©West 1999 No Claim to Orig. U.S. Govt. Works MO ST 140.250 Page 3 charges, is a "fraud" upon the state, as well as upon the taxpayer. Moore v. Brigman (Sup. 1947) 198 S.W.2d 857, 355 Mo. 889. Where there was no bid at either of two successive annual offerings sufficient to pay delinquent real estate taxes, interest, and charges, and the consideration paid at the third annual offering to the highest bidder was grossly inadequate, a court of equity had power to protect owner against the sale. Heagerty v. Hawkins (Sup. 1943) 173 S.W.2d 923. The provision of Jones-Munger tax law for the sale of so much of the property, when offered the first and second times, as is necessary to pay taxes, interest and charges, and if no sufficient bid is then received, for sale of the property at the third offering regardless of the amount bid, does not prevent equity from setting aside a tax sale under such law on the ground of gross inadequacy of the consideration, particularly in view of further provision of the law, requiring a nonresident purchaser to first assent in writing to the jurisdiction of the circuit court of the county and to file a written appointment of a citizen of such county as agent for service of process in any suit growing out of or connected with such tax sale. Bussen Realty Co. v. Benson (Sup. 1942) 159 S.W.2d 813, 349 Mo. 58. - 3. Recording of deed Section 140.410 requiring tax sale purchaser to cause deed to be executed and recorded within four years from date of sale applies only where certificate of purchase is issued, and therefore, since a collector's deed, rather than a certificate of purchase, is issued immediately following a third tax sale, a third-sale tax deed would not be invalid for failure to record it within four years from date of sale. Journey v. Miler (Sup. 1952) 250 S.W.2d 164, 363 Mo. 163. 4. Notice Deed of trust beneficiary had no statutory right to redeem property after third offering tax sale, and thus, deed of trust was not extinguished by sale in absence of due process notice. M & P Enterprises, Inc. v. Transamerica Financial Services (Sup. 1997) 944 S.W.2d 154, modified on denial of rehearing. Collector's deed on third tax sale, conveying in foreclosure of tax lien shown by public records, gives constructive notice to subsequent purchaser of land from former record owner. Journey v. Miler (Sup. 1952) 250 S.W.2d 164, 363 Mo. 163. 5. Title search Statute providing that no certificate of purchase of property at tax sale shall issue unless purchaser is entitled to issuance and delivery of collector's deed upon completion of a title search applies to trustees. Russo v. Kelm (App. E.D. 1992) 835 S.W.2d 568. Collector's and trustee's deeds to property sold at tax sale were invalid and county trustee had no right, title or interest in the property where neither trustee, collector, nor anyone else performed title search on behalf of county prior to date deed was issued to trustee. Russo v. Kelm (App. E.D. 1992) 835 S.W.2d 568. V. A. M. S. 140.250 MO ST 140.250 • END OF DOCUMENT Copr. © West 1999 No Claim to Orig. U.S. Govt. Works