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Adopt a resolution rescinding that portion of Resolution No. 2024-35 related to APN 0056-115-040, accepting the claim for excess proceeds from tax default sale, and authorizing the Auditor-Controller to distribute excess proceeds
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
Office of County Counsel recommends the Board of Supervisors adopt a resolution rescinding that portion of Resolution No. 2024-35 related to APN 0056-115-040, accepting the claim for excess proceeds from tax default sale, and authorizing the Auditor-Controller to distribute excess proceeds.
SUMMARY:
Revenue and Taxation Code sections 3692 and 3692.2 authorize the Tax Collector to sell tax-defaulted property on the internet. The disposition of the proceeds from the sales is prescribed in sections 4671-4676. Section 4675 allows any party of interest in the property to file with the County a claim for excess proceeds at any time prior to the expiration of one year following the recordation of the tax collector’s deed to the purchaser. This includes “any person with title of record to all or any portion of the property prior to the recordation of the tax deed to the purchaser.”
With respect to parcel APN 0056-115-040, on June 6, 2024, Mr. Denning, acting through counsel for purposes of appealing his claim, submitted sufficient documentation in support of his claim for excess proceeds on behalf of the Lisa Marie Center 2008 Revocable Living Trust as previous owner, River Denning as Trustee and therefore should be entitled to receive the residual amount of $284,696.28.
FINANCIAL IMPACT:
The County General Fund shall receive $127,869.50 from the excess proceeds. This amount reflects a deduction of $284,696.28 from the previous amount of $412,565.78, authorized pursuant to Resolution No. 2024-25.
The funds received by the County for delinquent taxes, penalties, interest and statutory administrative costs in relation to parcel APN 0056-115-040, as well as the $379.79 authorized to the Tax Collector for costs, will not be impacted.
DISCUSSION:
Pursuant to Board of Supervisors’ Resolution No. 2022-21, on May 10-12 and June 15-16, 2022, the Solano County Treasurer/Tax Collector/County Clerk (“Tax Collector”) conducted a public auction of tax-defaulted properties on the internet. The Tax Collector received proceeds in excess of the sums owed the Tax Collector on eight of the properties sold. California Revenue and Taxation Code section 4675 provides that claimants have one year to file a claim for excess proceeds received in a tax-default sale.
With respect to parcel APN 0056-115-040 the excess proceeds amounted to $285,076.07, before the Tax Collector incurred costs of $379.79. River Denning filed a timely claim on behalf of the Denning River Trust but was unable to provide sufficient documentation that the Trust had a valid legal claim for the residual amount of $284,696.28. In accordance with law, the Solano County Auditor-Controller notified Mr. Denning that on April 9, 2024, the Board of Supervisors would consider a resolution distributing the excess proceeds from the Tax Collector’s public auction and sale of tax defaulted properties. On April 9, 2024, the BOS approved the Resolution rejecting the claim submitted by River Denning on behalf of the Denning River Trust and authorized the Auditor-Controller to distribute the excess proceeds to the Tax Collector in the amount of $379.79 for its administrative costs and to the County of Solano in the residual amount of $284,696.28. On June 6, 2024, Mr. Denning, acting through counsel for purposes of appealing his claim, submitted sufficient documentation in support of this claim for excess proceeds on behalf of the Lisa Marie Center 2008 Revocable Living Trust, River Denning as Trustee and therefore, should be entitled to distribution of the residual amount of $284,696.28.
ALTERNATIVES:
The Board could request further information on this matter.
OTHER AGENCY INVOLVEMENT:
The Tax Collector and the Auditor-Controller were actively involved in receiving the claims and assisting with the determination of distribution.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION