DATE: October 31, 2017
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Hearing on Rescission of March 2016 Tax Sale of APN 465-107-01
RECOMMENDED ACTION(S):
TITLE
1. Conduct hearing on rescission of the County's sale of APN 465-107-01, located at Par In Blk 92 Fairmont, at the County's March 4 - 7, 2016 sale of tax-delinquent properties; and
2. Make the findings required by Revenue and Taxation Code section 3731 and adopt a resolution approving the rescission of the County's sale of APN 465-107-01.
REPORT
During the County's annual sale of tax-defaulted properties on March 4 - 7, 2016, the County sold property identified by APN 465-107-01 (Property). A bankruptcy trustee later informed the Auditor-Controller/Treasurer-Tax Collector (ACTTC) that the Property was included in a bankruptcy estate at the time of the sale and therefore should not have been sold.
ALTERNATIVE ACTION(S):
There is no viable alternative action. This hearing and determination by the Board of Supervisors is required to rescind the sale because the purchaser of the Property has not consented to rescission.
FISCAL IMPACT:
If the Board rescinds the sale, then the County would be required to issue a refund to the purchaser, Imran Sharief MD Defined Benefit Pension Plan and Trust (Purchaser) of the amount paid as the total purchase price at the tax sale ($4,439.95), plus interest at the greater of 3% annually or the County pool apportioned rate from the date of the purchase of the property at the tax sale until the date of the rescission. Interest due through October 31, 2017 is estimated to be $220.42. If the order to rescind were to occur on a later date, the amount of interest would be higher.
DISCUSSION:
In March 2016, the Property was sold at the County's annual sale of tax-delinquent properties. Staff was notified in April 2017 by the office of James Salven, a local bankruptcy trustee, that the Property was in...
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