TITLE
Consider a memorandum/resolution authorizing the filing of interventions for the foreclosure of abatement liens, in conjunction with delinquent tax collection lawsuits filed by Bell County.
SUMMARY
DATE: June 6, 2017
TO: Ronald L. Olson, City Manager
FROM: Kathy Davis, City Attorney
SUBJECT: Authorizing the filing of interventions for the foreclosure of abatement liens
BACKGROUND AND FINDINGS:
The law firm of McCreary, Veselka, Bragg & Allen, P.C. represents the Bell County Tax Appraisal District in the collection of delinquent property taxes. Several properties that are subject to a pending delinquent tax collection lawsuit also have city health and safety liens for the abatement of weeds, grass, trash, rubbish, and/or substandard structures.
Typically, properties on which the city has liens are vacant and abandoned and collection of the liens via foreclosure is difficult, if not impossible. First, the owners of the properties may not have any non-exempt assets from which the city may collect the amount of its lien; so a personal judgment against the property owners has little or no impact. Second, the city’s liens are inferior to the tax liens securing payment of the delinquent taxes on the property. Often, the total amount of the city’s liens and the delinquent property taxes exceed the “true” market value of the property and therefore exceed the amount a purchaser will pay for the property at a tax lien foreclosure sale conducted by the Bell County Sheriff.
If the minimum bid required by law is not received by the Sheriff at the tax lien foreclosure sale, the property is struck off the tax roll, rendering the property tax exempt. Delinquent taxes are not collected, the property is exempt from current taxes, the city does not collect its liens, and the city will continue to incur costs for maintenance of the property.
Section 214.004 of the Local Government Code, Section 342.007(h) of the Health and Safety Code, and Section 33.41(c)...
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