Georgia Senate - 1995/1996 Sessions

SB 89 - Prop. Acquisition at Tax Sales - land bank authority

Page Numbers - 1/ 2/ 3/ 4

1. Slotin  39th           2. Harbison  15th          3. Henson  55th


Senate Comm: F&PU       /         House Comm: Judy       /                      
Senate Vote: Yeas 48    Nays 0                                                  
           ---------------------------------------------                        
              Senate          Action          House                             
           ---------------------------------------------                        
             1/13/95   Read 1st time          2/14/95                           
             2/9/95    Favorably Reported     3/6/95                            
             Sub       Committee Amend/Sub                                      
             2/10/95   Read 2nd Time          2/15/95                           
             2/13/95   Read 3rd Time          3/10/95                           
             2/13/95   Passed/Adopted         3/10/95                           
             CS        Comm/Floor Amend/Sub   FS                                
             3/17/95   Amend/Sub Agreed To                                      
             3/30/95   Sent To Governor                                         
             4/7/95    Signed by Governor                                       
             242       Act/Veto Number                                          
           ---------------------------------------------                        
Effective Date: 4/7/95 Sections 1,2,3,5,6; 7/1/95 Section 4.                    
                                                                                
Code Sections amended: 48-3-19, 48-4-64                                         


SB 89 95                                             SB89/AP

      SENATE BILL 89

      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 Title 48 of the Official Code of Georgia Annotated,
  1- 2  relating to revenue and taxation, so as to provide that
  1- 3  certain provisions relating to selling and transferring
  1- 4  certain executions in lot blocks by the governing authority
  1- 5  of each county in this state having a population of 600,000
  1- 6  or more according to the United States decennial census of
  1- 7  1970 or any future such census, or by the governing
  1- 8  authority of any municipality in such county, shall be
  1- 9  applicable state wide; to change certain provisions relating
  1-10  to notice of sales of tax executions; to provide a method
  1-11  for determining which tax executions may be transferred; to
  1-12  change certain provisions relating to amounts which may be
  1-13  charged by transferees of tax executions; to change certain
  1-14  provisions relating to land bank authority acquisition of
  1-15  property at tax sales; to provide for effective dates; to
  1-16  provide for applicability; to repeal conflicting laws; and
  1-17  for other purposes.

  1-18       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-19  Title 48 is amended by striking paragraph (1) of subsection
  1-20  (b) of Code Section 48-3-19, relating to the transfer of tax
  1-21  executions, and inserting in its place a new paragraph (1)
  1-22  to read as follows:

  1-23      "(b)(1) The county governing authority of each county
  1-24      having a population of 600,000 or more, according to the
  1-25      United States decennial census of 1970 or any future
  1-26      such census, in this state and the governing authority
  1-27      of each municipality within each such county may sell
  1-28      and transfer, in lot blocks of the aggregate principal
  1-29      amount of not less than $10,000.00, executions issued
  1-30      for delinquent ad valorem taxes at a discount or
  1-31      discounts not to exceed 10 percent of the principal
  1-32      amount and for interest then due on the executions.  The
  1-33      transferee of executions sold and transferred shall have
  1-34      the same rights, powers, liens, and priorities as do the

                             S. B. 89
                                 -1- (Index)

                                                     SB89/AP

  2- 1      transferees of tax executions transferred in accordance
  2- 2      with law under which no discount is allowed.  When a
  2- 3      discount is allowed on the sale and transfer of any
  2- 4      executions which include taxes due the state, no part of
  2- 5      the discount shall be deducted from the portion of the
  2- 6      taxes payable to the state and the portion of the
  2- 7      discount applicable to the taxes due the state shall be
  2- 8      absorbed by the county or municipality.  There shall not
  2- 9      be included in any lot or block of tax executions sold
  2-10      and transferred at a discount any executions which
  2-11      exceed, or in any number of executions against the same
  2-12      person or corporation which exceed, in principal amount,
  2-13      20 percent of the total principal amount of the
  2-14      executions in the lot or block of executions."

                         SECTION 2.

  2-15  Said title is further amended by striking paragraph (4) of
  2-16  subsection (b) of Code Section 48-3-19, relating to the
  2-17  transfer of tax executions, and inserting in its place a new
  2-18  paragraph (4) to read as follows:

  2-19      "(4) Tax executions sold and transferred at a discount
  2-20      in accordance with this subsection shall not be enforced
  2-21      by levy within three months of the date of the transfer.
  2-22      Nothing in this Code section shall be held or construed
  2-23      to affect or impair the lien or priority of lien of the
  2-24      executions or to interfere with the collection of the
  2-25      executions in any manner other than by levy of the
  2-26      executions.  Tax executions sold and transferred in
  2-27      accordance with this subsection are not subject to the
  2-28      prior notice provision of subsection (a) of this Code
  2-29      section; provided, however, that both the defendant in
  2-30      fi. fa. and the current property owner of record shall
  2-31      be listed in a notice to be published not less than once
  2-32      a week for three weeks during the 90 day period prior to
  2-33      levy in the legal organ of the county in which the
  2-34      execution was issued."

                         SECTION 3.

  2-35  Said title is further amended in Code Section 48-3-19,
  2-36  relating to the transfer of tax executions, by striking
  2-37  subsection (d) and inserting in its place new subsections
  2-38  (d) and (e) to read as follows:

  2-39    "(d) In addition to the provisions of subsection (c) of
  2-40    this Code section, no person may pay an execution issued
  2-41    for ad valorem property taxes and thereby become the

                             S. B. 89
                                 -2- (Index)

                                                     SB89/AP

  3- 1    transferee of such execution as provided in subsection (a)
  3- 2    of this Code section if:

  3- 3      (1) The property which is the subject of the tax
  3- 4      execution has been included among a list of properties
  3- 5      identified by the local tax official, as authorized by
  3- 6      the local governing authority, as eligible for exclusion
  3- 7      from transfer of execution;

  3- 8      (2) A public hearing has been held on the issue of
  3- 9      excluding such property from eligibility for transfer of
  3-10      execution; and

  3-11      (3) Following the public hearing, the governing
  3-12      authority of the county or municipality, as applicable,
  3-13      has, in its discretion, approved the property for
  3-14      exclusion from transfer of execution based on a
  3-15      determination that such exclusion is in the best
  3-16      interest of the public.

  3-17    (d) (e) The person to whom a tax execution is transferred
  3-18    as provided in this Code section or his such person's
  3-19    successor or assigns shall not charge the person against
  3-20    whom such execution was issued for the release or
  3-21    satisfaction of such execution more than the amount paid
  3-22    on the tax execution plus interest from the date of such
  3-23    transfer on such amount calculated at a rate not exceeding
  3-24    12 percent per annum and any other costs associated with
  3-25    the filing of a transferred tax execution on any general
  3-26    execution docket."

                         SECTION 4.

  3-27  Said title is further amended by striking subsection (a) of
  3-28  Code Section 48-4-64, relating to the acquisition and
  3-29  disposal of property by land bank authorities, and inserting
  3-30  in lieu thereof a new subsection (a) to read as follows:

  3-31    "(a) If any party obtains a judgment against a tax
  3-32    delinquent property within the party county for the taxes
  3-33    and, to satisfy the judgment, the property is ordered sold
  3-34    at a tax sale, and if no person bids an amount equal to
  3-35    the full amount of all tax bills, interest, and costs
  3-36    owing on the property at the sale, the authority shall
  3-37    have the option at any time after the tax sale to cause
  3-38    the tax commissioner to make a deed of the property to the
  3-39    authority the authority may tender one bid at such sale,
  3-40    and such bid shall be comprised of the authority's
  3-41    commitment to pay not more than all costs of the sale and


                             S. B. 89
                                 -3- (Index)

                                                     SB89/AP

  4- 1    its assumption of liability for all taxes, accrued
  4- 2    interest thereon, and penalties, and, if there is no other
  4- 3    bid, the tax commissioner shall accept the authority's bid
  4- 4    and make a deed of the property to the authority."

                         SECTION 5.

  4- 5    (a) Except as provided in subsection (b) of this section,
  4- 6    this Act shall become effective upon its approval by the
  4- 7    Governor or upon its becoming law without such approval
  4- 8    and shall be applicable to all taxable years beginning on
  4- 9    or after January 1, 1995.

  4-10    (b) Section 4 of this Act shall become effective on July
  4-11    1, 1995.

                         SECTION 6.

  4-12  All laws and parts of laws in conflict with this Act are
  4-13  repealed.






























                             S. B. 89
                                 -4- (Index)