Results are in from 2013 tax sales

Tuesday, February 25, 2014

Bourbon County Commissioners on Monday received a final report on tax sales held in 2013.

Attorney Dan Meara, who is hired to handle the legal portion of the sales, reported the tax sales brought in $428,468.85 for the county.

After petitions were sent to property owners, $39,384.53 was redeemed prior to the three 2013 sales. Additional cases that were dismissed between legal steps in the procedure totaled $8,523.32.

Properties that were redeemed prior to the sale brought in $330,495.50

"These are the ones where people were served with a copy of the petition and they realized they had to do something if they wanted to keep those properties, so they came in," Meara said.

That amount includes the legal and processing fees. When redeeming their property, the owner must pay -- in addition to all the taxes due -- $250. Some owners had to pay through 2012, but others who redeemed after the 2013 assessment had to pay taxes through 2013, Meara said.

"When you think of recovering taxes, these are the ones we really recover taxes on," Meara said.

The 39 parcels sold on Aug. 12, 2013 brought in a total of 1,832 for the county. On Oct. 22, 56 parcels went on the auction block, but three of those did not sell. The sale brought in $37,014.50. There were 15 parcels sold on Feb. 12, for a total of $11,219.

"The properties that go to the sheriff's sales are usually properties that are abandoned or people have walked away from, and don't have any further interest in," Meara said. "These are not real prime real estate."

He said one house sold for about $500.

"That was right after we had this spirited bidding on the house just before that," Meara said. "Somebody got a really good buy. Everyone once in a while, someone gets a really good buy."

He said Sunday, he saw one new property owner renovating the house he bought at one of the sales.

"It's going to make a good home if he's going to live in it, or a good rental," Meara said.

During one of the sales, the auctioneer was unable to get any bidders on a couple of parcels. Meara said the parcels did sell after he asked the auctioneer to go back to them at the end of the sale.

Of the 239 tracts of property that have gone through Security First, which handles the abstract work for the sales, two are still in litigation, Meara said. One is near settlement and he said he's hopeful there will be an agreement soon. Those properties will be on the next tax sale.

The county has filed 28 foreclosures and received another 25 that have been prepared by Security First.

No date has been set for the next sale.

Second District Commissioner Barbara Albright said she would like to see representatives from Security First be included in the sales discussion so they aren't doing extra work. Dunn said she would like to see the entire process improved.

"When the year closes, we stop attempts to collect on these and we turn them over," Dunn said. "I would like to see them happen in April and August, so we're on the same schedule, we know when they're going to happen and we're going to finish them up."

When asked what he thought about setting April and August as the months for sales, Meara said, "I think it's a nice goal. I think it's a nice idea. I can't guarantee (it). I've said it before. Litigating these cases is like herding cats."

He said when an owner retains an attorney, there is no way of knowing when litigation will conclude.

Another example of what might hold up a sale is if there is a federal lien on the property. That means several federal entities may be involved, such as the IRS and federal attorneys.

"I will do my best to try to meet that," Meara said.

One change being made is the process of paying the filing fee to the district court. Those who redeem their properties must pay $250, which includes that fee.

Meara has placed all parcels on one case, which means only one $176 filing fee will be paid to the district court, but each property owner will still pay $250. The change means more money will go toward the abstract work, Meara's fees, advertising and other expenses. Not any one individual will pay the filing fee, but it will come out of the total paid by all who redeem their properties.

Treasurer's office renovation

Dunn reported new carpeting was laid over the weekend in the treasurer's office in preparation for consolidating with the motor vehicle's office, which is being relocated to the second floor.

The commissioners have not made a decision on how the vacated space on the first floor will be used. Dunn said she recommends moving the driver's license office from the hallway on the second floor to the first floor space. She said she has talked to the state and has learned the state will be responsible for moving and reconnecting the computers.

The vacated motor vehicle's office has secured storage space that can be used to store election equipment and county clerk documents that must be retained in a secured location.

Other county business

* The commissioners held a 10-minute executive session with department heads to discuss whether an employee can use time from the vacation pool for sick leave. After the meeting was reopened, department heads Kendell Mason, Terri Johnson, Lora Holdridge, Judy Wallis, Dunn, and Shawn Walker voted in favor of allowing employees to donate time to their fellow employee. The commissioners voted in favor of the department heads' recommendation.

* A 30-minute executive session was held to discuss confidential data related to the county's finances. No action was taken.

* Commissioners learned that work is continuing on 240th Street. On Friday, Roads and Bridges Director Jim Harris reported that a portion of the road has been cut and filled with gravel. Signs have been posted warning drivers that the road is closed and there is loose gravel.

On Monday, Harris said more cuts are being made.

"It's going to be a long process," Harris said.