SB 338 - Tax Sales - nonjudicial tax fore- closure, in rem tax foreclosure
Georgia Senate - 1995/1996 Sessions
SB 338 - Tax Sales - nonjudicial tax fore- closure, in rem tax foreclosure
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12
1. Slotin 39th 2. Harbison 15th 3. Henson 55th
Senate Comm: F&PU / House Comm: Judy /
Senate Vote: Yeas 51 Nays 0
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Senate Action House
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2/14/95 Read 1st time 2/21/95
2/16/95 Favorably Reported 3/10/95
Committee Amend/Sub Sub
2/17/95 Read 2nd Time 2/22/95
2/20/95 Read 3rd Time 3/14/95
2/20/95 Passed/Adopted 3/14/95
FA Comm/Floor Amend/Sub CS/FA
2/20/95 Notice to Reconsider
3/15/95 Amend/Sub Agreed To
3/24/95 Sent To Governor
4/7/95 Signed by Governor
241 Act/Veto Number
7/1/95 Effective Date
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Code Sections amended: 48-4-75, 48-4-76, 48-4-77, 48-4-78, 48-4-79, 48-4-80,
48-4-81
SB 33895 SB338/AP
SENATE BILL 338
By: Senators Slotin of the 39th, Harbison of the 15th and
Henson of the 55th
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 4 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to tax sales, so as to provide
1- 3 for legislative findings relating to nonjudicial tax
1- 4 foreclosure procedures; to provide for judicial in rem tax
1- 5 foreclosure; to provide for definitions; to provide for the
1- 6 filing of a petition for tax foreclosure; to provide for
1- 7 notice; to provide the form of the tax foreclosure petition;
1- 8 to provide for a judicial hearing; to provide for payment of
1- 9 taxes; to provide for a foreclosure sale; to provide for a
1-10 period of redemption; to provide the form of the tax deed;
1-11 to provide for related matters; to repeal conflicting laws;
1-12 and for other purposes.
1-13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-14 Chapter 4 of Title 48 of the Official Code of Georgia
1-15 Annotated, relating to tax sales, is amended by adding at
1-16 the end thereof a new Article 5 to read as follows:
"ARTICLE 5
1-17 48-4-75. (Index)
1-18 The General Assembly finds that the nonpayment of ad
1-19 valorem taxes by property owners effectively shifts a
1-20 greater tax burden to property owners willing and able to
1-21 pay their share of such taxes, that the failure to pay ad
1-22 valorem taxes creates a significant barrier to
1-23 neighborhood and urban revitalization, that significant
1-24 tax delinquency creates barriers to marketability of the
1-25 property, and that nonjudicial tax foreclosure procedures
1-26 are inefficient, lengthy, and commonly result in title to
1-27 real property which is neither marketable nor insurable.
1-28 In addition, the General Assembly finds that tax
1-29 delinquency in many instances results in properties which
1-30 present health and safety hazards to the public.
1-31 Consequently, the General Assembly further finds that the
1-32 alternative to nonjudicial tax foreclosure procedures
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2- 1 authorized by this article is an effective means of
2- 2 eliminating health and safety hazards by putting certain
2- 3 tax delinquent properties back on the tax rolls and into
2- 4 productive use.
2- 5 48-4-76. (Index)
2- 6 (a) In addition to any other rights and remedies provided
2- 7 under state law for the enforcement of tax liens by the
2- 8 State of Georgia and its counties and municipalities, such
2- 9 governmental entities may proceed with judicial in rem tax
2-10 foreclosures for delinquent taxes in accordance with the
2-11 provisions of this article by enactment of an ordinance or
2-12 resolution of the governing authority of the county in
2-13 which the property is located. Any such ordinance or
2-14 resolution may set forth criteria for selection of
2-15 properties to be subject to the provisions of this
2-16 article.
2-17 (b) Proceedings in accordance with this article are
2-18 designed solely to enforce the lien for ad valorem taxes
2-19 against the property subject to such taxation and shall
2-20 not constitute an action for personal liability for such
2-21 taxes of the owner or owners of such property.
2-22 (c) The rights and remedies set forth in this article are
2-23 available solely to the governmental entities authorized
2-24 by law to collect ad valorem taxes and shall not extend to
2-25 any transferee of tax executions or tax liens.
2-26 48-4-77. (Index)
2-27 As used in this article, the term:
2-28 (1) 'Interested party' means:
2-29 (A) Those parties having an interest in the property
2-30 as revealed by a certification of title to the
2-31 property conducted in accordance with the title
2-32 standards of the State Bar of Georgia;
2-33 (B) Those parties having filed a notice in accordance
2-34 with Code Section 48-3-9; and
2-35 (C) Any other party having an interest in the property
p r sh #þ u@ -þ u@ 7þ u@ Aþ u@ _ u@
2-37 ascertainable from the records of the petitioner or
2-38 records maintained in the county courthouse or by the
2-39 clerk of the court. 'Interested Party' shall not
2-40 include the holder of the benefit or burden of any
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3- 1 easement or right of way whose interest is properly
3- 2 recorded which interest shall remain unaffected.
3- 3 (2) 'Redemption amount' means the full amount of the
3- 4 delinquent ad valorem taxes, accrued interest at the
3- 5 rate specified in Code Section 48-2-40, penalties
3- 6 determined in accordance with Code Section 48-2-44, and
3- 7 costs incurred by the governmental entity in collecting
3- 8 such taxes including without limitation the cost of
3- 9 title examination and publication of notices.
3-10 48-4-78. (Index)
3-11 (a) After an ad valorem tax lien, based upon a digest
3-12 approved in accordance with the law, has become payable
3-13 and is past due and thereby delinquent, a tax commissioner
3-14 or other tax collector, as appropriate, may identify those
3-15 properties on which to commence a tax foreclosure in
3-16 accordance with this article. The tax commissioner or
3-17 other tax collector, as appropriate, shall not commence
3-18 tax foreclosure in accordance with this article for a
3-19 period of 12 months following the date upon which the
3-20 taxes initially became delinquent.
3-21 (b) The tax commissioner or other tax collector, as
3-22 appropriate, shall file a petition with the superior court
3-23 of the county in which the property is located, which
3-24 petition shall have form and content substantially
3-25 identical to that form as provided in subsection (g) of
3-26 this Code section. When the subject property is located
3-27 in more than one taxing jurisdiction, the entity filing
3-28 the petition shall identify in the petition only those
3-29 portions of such property lying within the jurisdiction of
3-30 the taxing authority of the petitioner.
3-31 (c) The petition shall be filed against the property for
3-32 which taxes are delinquent and shall provide:
3-33 (1) The identity of the petitioner and the name and
3-34 address of the individual responsible for collecting the
3-35 delinquent taxes;
3-36 (2) The property address;
3-37 (3) A description of the property;
3-38 (4) The tax identification number of the property;
3-39 (5) The calendar year or years for which the taxes are
3-40 delinquent;
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4- 1 (6) The principal amount of the delinquent taxes
4- 2 together with interest and penalties; and
4- 3 (7) The names and addresses of parties to whom copies of
4- 4 the petition are to be sent in accordance with
4- 5 subsection (d) of this Code section.
4- 6 (d) The petitioner shall mail copies of the petition by
4- 7 certified mail, return receipt requested, to all
4- 8 interested parties whose identity and address are
4- 9 reasonably ascertainable. Copies of the petition shall
4-10 also be mailed by first-class mail to the property address
4-11 to the attention of the occupants of the property, if any,
4-12 and shall be posted on the property.
4-13 (e) Simultaneous with the filing of the petition, the
4-14 petitioner shall cause notice of the petition to be filed
4-15 in the appropriate lis pendens docket in the county in
4-16 which the property is located.
4-17 (f) Within 30 days of the filing of the petition, the
4-18 petitioner shall cause a notice of the filing of the
4-19 petition to be published on two separate dates in the
4-20 official organ of the county in which the property is
4-21 located. Such notice shall specify:
4-22 (1) The identity of the petitioner and the name and
4-23 address of the individual responsible for collecting the
4-24 delinquent taxes;
4-25 (2) The property address;
4-26 (3) A description of the property;
4-27 (4) The tax identification number of the property;
4-28 (5) The applicable period of tax delinquency;
4-29 (6) The principal amount of the delinquent taxes
4-30 together with interest and penalties; and
4-31 (7) The date and place of the filing of the petition.
4-32 (g) The petition for ad valorem tax foreclosure shall be
4-33 written or printed, or written in part and printed in
4-34 part, and shall be in substantially the following form:
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5- 1 SUPERIOR COURT OF ________COUNTY
5- 2 STATE OF GEORGIA
5- 3 Petitioner: )
5- 4 TAX COMMISSIONER/TAX COLLECTOR)
5- 5 ________________ )
5- 6 ________________ )
5- 7 ________________ )
5- 8 (Name, Address, )
5- 9 Telephone Number) )
5-10 v. )
5-11 Respondents: ) Case No.:_____
5-12 ___ ACRES OF LAND LYING )
5-13 AND BEING IN LAND LOT )
5-14 ______, DISTRICT ______, )
5-15 _______ COUNTY, GEORGIA; )
5-16 AND ___________________ )
5-17 _______________________ )
5-18 (Insert name and mailing address of owner of property.)
5-19 PETITION FOR AD VALOREM TAX FORECLOSURE
5-20 COMES NOW (Petitioner) and petitions this Court for an
5-21 in rem tax foreclosure by showing this Court as follows:
1.
5-22 _______________________ is the owner of certain real
5-23 property located at _________________________(the
5-24 'Property') having a tax identification number of
5-25 ______________. (A legal description of the Property
5-26 is attached hereto as Exhibit 'A' and by this
5-27 reference incorporated herein).
2.
5-28 The ad valorem taxes assessed against the Property by
5-29 City/County of ______ for the year(s) ____ in the
5-30 amount of $______ (amount includes principal amount of
5-31 taxes owed and any accrued interest and penalties as
5-32 of this date) have not been paid.
3.
5-33 Attached hereto as Exhibit 'B' is a list of the names
5-34 and addresses of Interested Parties also receiving a
5-35 copy of this Petition by certified mail return receipt
5-36 requested.
4.
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6- 1 ____________________ and ____________________ as
6- 2 occupants of the respondent Property shall be served
6- 3 by mailing the petition by first-class mail to the
6- 4 attention of the occupants at the above-listed
6- 5 Property address.
5.
6- 6 The Petition has also been posted on the Property in
6- 7 accordance with Code Section 48-4-78 of the Official
6- 8 Code of Georgia Annotated.
6.
6- 9 Simultaneously with the filing of this Petition,
6-10 Petitioner has filed a lis pendens.
6-11 WHEREFORE, Petitioner demands (1) a hearing in the
6-12 Superior Court of ________ County (the 'Court') and (2)
6-13 a judgment by the Court stating that (a) the taxes for
6-14 the Property are delinquent and (b) that Notice has been
6-15 given to all Interested Parties, and ordering that the
6-16 Property may be sold at public outcry pursuant to Code
6-17 Section ____________ of the Official Code of Georgia
6-18 Annotated.
TAX COMMISSIONER/TAX COLLECTOR
City/County of _______________
By: __________________________
Its: _________________________
6-19 NOTICE TO RESPONDENTS AND ALL INTERESTED PARTIES
6-20 This Petition serves as notice to the Respondents and
6-21 all Interested Parties that (1) each party is presumed
6-22 to own or have a legal interest in the Property, (2)
6-23 that foreclosure proceedings have been commenced because
6-24 of the failure to pay the real property taxes cited
6-25 above, and (3) foreclosure will result in the loss of
6-26 ownership of the Property and all rights or interests of
6-27 all Interested Parties.
6-28 To avoid loss of ownership or any interest in the
6-29 Property, payment of the full amount of taxes,
6-30 penalties, interest, and costs must be paid to the
6-31 ______________ office located at _______________________
6-32 by ______________ date. Respondents and all Interested
6-33 Parties are also reminded that each of you may wish to
6-34 contact an attorney to protect your rights.
6-35 A Hearing on the above matter shall take place in the
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7- 1 Superior Court of ________ County no earlier than 30
7- 2 days after the filing of this Petition. To determine
7- 3 the exact time and date of such hearing, please call
7- 4 Clerk of Superior Court of ________ County.
7- 5 This ______ day of ______________, __.
_______________________________
Deputy Clerk
Superior Court of ______ County
EXHIBIT A
7- 6 Description of the Property
7- 7
7- 8
7- 9
7-10 Together with all rights, title, and interest running
7-11 with the above-described property but not taxed under a
7-12 separate tax reference number as delineated on the tax
7-13 maps of the petitioner for the year(s) for the taxes
7-14 being foreclosed.
EXHIBIT B
7-15 Names and Addresses of Interested Parties
7-16
7-17
7-18
7-19 48-4-79. (Index)
7-20 (a) The petitioner shall request that a judicial hearing
7-21 on the petition occur not earlier than 30 days following
7-22 the filing of the petition. At such hearing any
7-23 interested party shall have the right to be heard and to
7-24 contest the delinquency of the taxes or the adequacy of
7-25 the proceedings. If the superior court determines that
7-26 the information set forth in the petition is accurate, the
7-27 court shall render its judgment and order that:
7-28 (1) The taxes are delinquent;
7-29 (2) Proper notice has been given to all interested
7-30 parties;
7-31 (3) The property as described in the petition be sold in
7-32 accordance with the provisions of this article; and
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8- 1 (4) The sale shall become final and binding 60 days
8- 2 after the date of the sale in accordance with Code
8- 3 Section 48-4-81.
8- 4 (b) The order of the superior court shall provide that the
8- 5 property be sold free and clear of all liens, claims, and
8- 6 encumbrances other than:
8- 7 (1) Rights of redemption provided under federal law;
8- 8 (2) Tax liens held by Georgia governmental entities
8- 9 other than the petitioner which are superior to the
8-10 taxes identified in the petition by virtue of the
8-11 provisions of subsection (b) of Code Section 48-2-56;
8-12 (3) The holders of easements and rights-of-way described
8-13 in Code Section 48-3-9; and
8-14 (4) The holders of the benefits or burdens of any real
8-15 covenants filed of record as of the date of filing of
8-16 the petition.
8-17 (c) If, upon production of evidence to the court by any
8-18 party, it is determined by the court that any interested
8-19 party died within the six-month period of time immediately
8-20 preceding the filing of the petition, the court may
8-21 postpone the hearing, for a period of up to six months, to
8-22 allow the administrator or executor of the estate adequate
8-23 time to close the estate.
8-24 48-4-80. (Index)
8-25 (a) At any point prior to the moment of the sale, any
8-26 interested party may redeem the property from the sale by
8-27 payment of the redemption amount. Payment shall be made
8-28 to the petitioner. Following receipt of such payment, the
8-29 petitioner shall file for dismissal of the proceedings.
8-30 (b) In the event of such payment by the owner of the
8-31 subject property, the proceedings shall be dismissed and
8-32 the rights and interests of all interested parties shall
8-33 remain unaffected.
8-34 (c) In the event of such payment by any interested party
8-35 other than the owner, the party accomplishing such payment
8-36 shall possess a lien on the property for the full amount
8-37 of such payment, which lien shall have the same priority
8-38 as the lien for the delinquent taxes. Such lien holder
8-39 shall have the right to enforce such lien as permitted to
8-40 the holder of any lien under existing law. Such lien
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9- 1 holder shall not otherwise succeed to the rights of the
9- 2 petitioner as described in this article.
9- 3 48-4-81. (Index)
9- 4 (a) Following the hearing and order of the superior court
9- 5 in accordance with Code Section 48-4-79, a sale of the
9- 6 property shall be advertised and conducted on the date,
9- 7 time, place, and manner which are required by law of
9- 8 sheriffs' sales. Such sale shall not occur earlier than 45
9- 9 days following the date of issuance of such order of the
9-10 superior court.
9-11 (b) Except as otherwise authorized by law, the minimum bid
9-12 price for the sale of the property shall be the redemption
9-13 amount. In the absence of any higher bid, the petitioner
9-14 may, but shall not be obligated to, tender its own bid in
9-15 an amount equal to the minimum bid price and thereby
9-16 become the purchaser at the sale.
9-17 (c) From and after the moment of the sale, the sale shall
9-18 be final and binding, subject only to the right of the
9-19 owner of the property to redeem the property from the sale
9-20 upon payment into the superior court of the full amount of
9-21 the minimum bid price of the sale. Such right of
9-22 redemption of the owner shall exist for a period of 60
9-23 days from and after the date of the sale and shall be in
9-24 accordance with the following provisions:
9-25 (1) Redemption by an owner in accordance with this
9-26 subsection shall result in a dismissal of the
9-27 proceedings. Immediately following such redemption by
9-28 an owner, if the property was sold to a third party at
9-29 the sale, the petitioner shall refund to such purchaser
9-30 the full amount paid by such purchaser at the sale;
9-31 (2) For purposes of redemption under this subsection,
9-32 'owner' shall mean the owner of record of fee simple
9-33 interest in the property as of the date of filing of the
9-34 petition, together with such owner's
9-35 successors-in-interest by death or operation of law.
9-36 This right of redemption shall not otherwise be
9-37 transferable; and
9-38 (3) This right of redemption shall automatically
9-39 terminate and expire upon failure to redeem in
9-40 accordance with the provisions of this subsection within
9-41 the 60 day period following the date of the sale.
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10- 1 (d) If the property is not redeemed by the owner in
10- 2 accordance with subsection (c) of this Code section, then
10- 3 within 90 days following the date of the sale, the
10- 4 petitioner shall cause to be executed on behalf of the
10- 5 petitioner and delivered to the foreclosure sale purchaser
10- 6 a deed for the property in substantially the form set
10- 7 forth in subsection (g) of this Code section, together
10- 8 with such real estate transfer tax declaration forms as
10- 9 may be required by law.
10-10 (e) Within 90 days following the date of the sale, the
10-11 petitioner shall file a report of the sale with the
10-12 superior court, which report shall identify whether a sale
10-13 took place, the foreclosure sale price, and the identity
10-14 of the purchaser.
10-15 (f) In the event that the foreclosure sale price exceeds
10-16 the minimum bid amount at the foreclosure sale, the
10-17 petitioner shall deposit into the registry of the superior
10-18 court the amount of such surplus. Such surplus shall be
10-19 distributed by the superior court to the interested
10-20 parties, including the owner, as their interests appear
10-21 and in the order of priority in which their interests
10-22 exist.
10-23 (g) The form of the deed provided for in subsection (d) of
10-24 this Code section shall be substantially as follows:
10-25 When recorded, please CROSS-REFERENCE:
10-26 return to: Deed Book ____, page ____,
10-27 ____________________ ______County, Georgia Records
10-28 ____________________
10-29 ____________________
10-30 STATE OF GEORGIA
10-31 COUNTY OF _______
TAX DEED
10-32 This indenture (the 'Deed') made this ______ day of
10-33 ______________, ____, by and between ______________, a
10-34 ______________ ('Grantor') and ______________, a
N p ______________ ('Grantee').
WITNESSETH
10-36 WHEREAS, on the ______ day of ______________, ____,
10-37 during the legal hours of sale, Grantor did expose for
10-38 sale at public outcry to the highest bidder for cash
10-39 before the courthouse door in ______ County, Georgia,
10-40 the Property (as hereinafter defined) at which sale
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11- 1 Grantee was the highest and best bidder for the sum of
11- 2 $_________ and the Property was then and there knocked
11- 3 off to Grantee for said sum. The sale was made by
11- 4 Grantor pursuant to and by virtue of the power and
11- 5 authority granted to it in that certain Order granted
11- 6 ______________, _____, Case No. ______, Superior Court
11- 7 of ______ County, Georgia (the 'Order'). Said sale was
11- 8 made after advertising the time, place, and terms
11- 9 thereof in the _______________________, published in
11-10 ______________, Georgia, in the aforesaid county, and
11-11 being the publication in which Sheriff's advertisements
11-12 for said county are now published, once a week for four
11-13 consecutive weeks prior to said sale on the _____,
11-14 ______, ______, and ____ of ________, ________, and said
11-15 advertisement in all respects complied with the
11-16 requirements of Code Section __________ of the Official
11-17 Code of Georgia Annotated. Notice of the time, place,
11-18 and terms of the sale of the Property was given pursuant
11-19 to Code Section ___________ of the Official Code of
11-20 Georgia Annotated. Said sale was made for the purpose
11-21 of paying the ad valorem taxes owed to
11-22 ______________________, the interest and penalties on
11-23 said indebtedness, the expenses of the sale including
11-24 attorneys' fees, all of which were mature and payable
11-25 because of failure of the owner to pay the ad valorem
11-26 taxes owed.
11-27 NOW, THEREFORE, Grantor, acting under and by virtue of
11-28 the Order and pursuant to Code Section ___________ of
11-29 the Official Code of Georgia Annotated, for and in
11-30 consideration of the facts hereinbefore recited, has
11-31 bargained, sold, and conveyed and does hereby bargain,
11-32 sell, and convey unto Grantee, its successors and
11-33 assigns, the following described property (herein
11-34 referred to as the 'Property'); to wit:
11-35 All that tract or parcel of land lying and being in
11-36 Land Lot _____ of the _____ District, ______ County,
11-37 Georgia, and being more particularly described on
11-38 Exhibit 'A' attached hereto and by this reference made
11-39 a part hereof.
11-40 This Deed is given subject to all restrictions and
11-41 easements, if any, to which the Deed is junior and
11-42 inferior in terms of priority, and any and all tax liens
11-43 which pursuant to subsection (b) of Code Section 48-2-56
11-44 of the Official Code of Georgia Annotated are superior
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12- 1 to the rights conveyed herein relating to the Property.
12- 2 TO HAVE AND TO HOLD, the Property unto Grantee, its
12- 3 successors and assigns in fee simple.
12- 4 IN WITNESS WHEREOF, Grantor, has caused its duly
12- 5 authorized officer to sign and seal this Deed as of the
12- 6 day and year first above written.
_______________________
12- 7 Signed, sealed, and
12- 8 delivered in the
12- 9 presence of:
12-10 ___________________
12-11 Unofficial Witness
By: ______________(SEAL)
Its: ___________________
12-12 ______________
12-13 Notary Public
12-14 Commission Data:
12-15 _______________
12-16 (NOTARIAL SEAL)
EXHIBIT A
12-17 Description of the Property
12-18
12-19
12-20
12-21 Together with all right, title, and interest running
12-22 with the above-described property but not taxed under a
12-23 separate tax reference number as delineated on the tax
12-24 maps of the petitioner for the year(s) for the taxes
12-25 being foreclosed."
SECTION 2.
12-26 All laws and parts of laws in conflict with this Act are
12-27 repealed.
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Office of the Secretary of the Senate
Frank Eldridge, Jr., Secretary of the Senate
Last Updated on 01/02/97