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| HB 185 - Tax executions in lot blocks; revise provisions |
First Reader Summary
A BILL to amend Chapter 3 of Title 48 of the Official Code of
Georgia Annotated, relating to tax executions, so as to revise
comprehensively certain provisions regarding the selling and
transferring of tax executions in lot blocks; and for other
purposes.
Page Numbers -
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Code Sections -
48-3-19
Recorded Votes
| House
| Action
| Senate
|
| 1/16/97
| Read 1st Time
| 2/17/97
|
| 1/17/97
| Read 2nd Time
| 3/7/97
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| 2/7/97
| Favorably Reported
| 3/6/97
|
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| Committee Amend/Sub
| Sub
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| 2/14/97
| Read 3rd Time
| 3/27/97
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| 2/14/97
| Passed/Adopted
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| FS
| Comm/Floor Amend/Sub
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HB 185 LC 18 8252ERS
The Senate Finance and Public Utilities Committee
offers the following substitute to HB 185:
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 3 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to tax executions, so as to
1- 3 revise comprehensively certain provisions regarding the
1- 4 selling and transferring of tax executions in lot blocks; to
1- 5 provide for definitions; to provide for notice; to provide
1- 6 for procedures, conditions, and limitations; to provide for
1- 7 duties and responsibilities of transferees; to provide an
1- 8 effective date; to repeal conflicting laws; and for other
1- 9 purposes.
1-10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-11 SECTION 1.
1-12 Chapter 3 of Title 48 of the Official Code of Georgia
1-13 Annotated, relating to tax executions, is amended by
1-14 striking Code Section 48-3-19, relating to transfer of
1-15 executions, and inserting in its place a new Code Section
1-16 48-3-19 to read as follows:
1-17 "48-3-19.
1-18 (a)(1) Whenever any person other than the person against
1-19 whom an execution has been issued pays an execution
1-20 issued for state, county, or municipal taxes and proves
1-21 compliance with subsection (c) (b) of this Code section
1-22 for individual transfers or subsection (c) of this Code
1-23 section for transfers in lot blocks, the officer whose
1-24 duty it is to enforce the execution, upon the request of
1-25 the party paying the execution, shall transfer the
1-26 execution to the party so paying. The person to whom
1-27 the execution is transferred shall have the same rights
1-28 as to enforcing the execution and priority of payment as
1-29 might have been exercised or claimed before the
1-30 transfer, if, within 30 days of the transfer, the person
1-31 to whom the execution is transferred has the execution
1-32 entered on the general execution docket of the superior
1-33 court of the county in which the execution was issued
1-34 and, if the person against whom the execution was issued
-1-
2- 1 resides in a different county, has the execution entered
2- 2 on the general execution docket of the superior court in
2- 3 the county of such person's residence. In default of
2- 4 the required entry, the execution shall lose its lien
2- 5 upon any property which has been transferred in good
2- 6 faith and for a valuable consideration before the entry
2- 7 and without notice of the existence of the execution.
2- 8 (2)(A) It shall be unlawful for any tax official
2- 9 covered by this paragraph to pay a tax execution in
2-10 order to obtain a transfer of the execution under this
2-11 Code section. It shall be unlawful for any employee
2-12 of a tax official covered by this paragraph to pay a
2-13 tax execution in order to obtain a transfer of the
2-14 execution under this Code section. The tax officials
2-15 covered by this paragraph are:
2-16 (i) County tax receivers, tax collectors, and tax
2-17 commissioners;
2-18 (ii) Members of county boards of tax assessors;
2-19 (iii) Members of county boards of equalization; and
2-20 (iv) County tax appraisers.
2-21 (B) Any execution transferred in violation of
2-22 subparagraph (A) of this paragraph shall be void and
2-23 unenforceable by the person obtaining the execution
2-24 and his such person's successors in interest.
2-25 (C) Any tax official or employee of a tax official
2-26 violating subparagraph (A) of this paragraph shall
2-27 upon conviction be guilty of a misdemeanor. (b)(1) The county governing authority of each county in
2-29 this state and the governing authority of each
2-30 municipality within each such county may sell and
2-31 transfer, in lot blocks of the aggregate principal
2-32 amount of not less than $10,000.00, executions issued
2-33 for delinquent ad valorem taxes at a discount or
2-34 discounts not to exceed 10 percent of the principal
2-35 amount and for interest then due on the executions. The
2-36 transferee of executions sold and transferred shall have
2-37 the same rights, powers, liens, and priorities as do the
2-38 transferees of tax executions transferred in accordance
2-39 with law under which no discount is allowed. When a
2-40 discount is allowed on the sale and transfer of any
2-41 executions which include taxes due the state, no part of
2-42 the discount shall be deducted from the portion of the
-2-
3- 1 taxes payable to the state and the portion of the
3- 2 discount applicable to the taxes due the state shall be
3- 3 absorbed by the county or municipality. There shall not
3- 4 be included in any lot or block of tax executions sold
3- 5 and transferred at a discount any executions which
3- 6 exceed, or in any number of executions against the same
3- 7 person or corporation which exceed, in principal amount,
3- 8 20 percent of the total principal amount of the
3- 9 executions in the lot or block of executions. (2) Whenever the official authorized to sell and
3-11 transfer executions at a discount determines to do so, a
3-12 schedule of the executions to be so transferred,
3-13 together with the name of the person or corporation to
3-14 whom or to which the executions are to be transferred
3-15 and the discount to be allowed, shall be furnished in
3-16 writing to the officer charged by law with the duty of
3-17 enforcing the executions to be transferred. Upon
3-18 receipt from the purchaser so designated of the amount
3-19 of the principal, interest, and costs then due on the
3-20 executions less the discount specified in the written
3-21 notice, the officer charged by law with the duty of
3-22 enforcing the executions shall transfer and deliver the
3-23 executions to the person or corporation making the
3-24 payment. The transfers shall recite as the
3-25 consideration for the transfer the receipt of the full
3-26 amount of the executions as though no discount had been
3-27 allowed. The transfers shall vest in the transferee and
3-28 his or its successors and assigns the full priority of
3-29 the lien and all of the rights and powers for enforcing
3-30 the executions and collecting the full amount of the
3-31 executions including principal, interest, and costs
3-32 which were at the time of the transfer possessed or held
3-33 by the state, county, city, or municipality by, for, or
3-34 in the name of which the executions were issued. The
3-35 transferee and its successors and assigns shall be
3-36 subrogated to all of the rights and powers with respect
3-37 to the executions possessed by, or which would
3-38 thereafter accrue to, the state, county, municipality,
3-39 or city by, for, or in the name of which the executions
3-40 were issued, had no transfer been made. The lien of the
3-41 executions shall not be divested by any sale under any
3-42 other process, judicial or otherwise, or by any sale to
3-43 satisfy any prior or any subsequent tax lien, if the
3-44 transferee has the executions entered on the general
3-45 execution docket of the superior court of the county in
-3-
4- 1 which the executions were issued and, if the person
4- 2 against whom the same were issued resides in a different
4- 3 county, then also in the county of such person's
4- 4 residence within 30 days of the date of the transfers.
4- 5 In default of the required entry, the executions shall
4- 6 lose their lien upon any property which has been
4- 7 transferred in good faith and for a valuable
4- 8 consideration before the entry and without notice of the
4- 9 existence of the executions. (3) Nothing done or omitted to be done by any officer or
4-11 employee of the state, county, city, or municipality by,
4-12 for, or in the name of which the executions so sold and
4-13 transferred were issued shall prevent or in any way
4-14 interfere with the collection of the full amount of the
4-15 principal, interest, and costs due on, and in accordance
4-16 with the terms of, the executions. No person liable for
4-17 the payment of the taxes represented by the executions
4-18 or desiring for any reason to pay such taxes shall be
4-19 entitled to any credit or benefit from or on account of
4-20 the discount allowed to the transferee of the
4-21 executions. The collection of the executions shall not
4-22 be defeated for any reason except upon proof that the
4-23 tax has been paid or that the property on which the tax
4-24 was assessed is exempt from taxation under the laws of
4-25 this state. (4) Tax executions sold and transferred at a discount in
4-27 accordance with this subsection shall not be enforced by
4-28 levy within three months of the date of the transfer.
4-29 Nothing in this Code section shall be held or construed
4-30 to affect or impair the lien or priority of lien of the
4-31 executions or to interfere with the collection of the
4-32 executions in any manner other than by levy of the
4-33 executions. Tax executions sold and transferred in
4-34 accordance with this subsection are not subject to the
4-35 prior notice provision of subsection (a) of this Code
4-36 section; provided, however, that both the defendant in
4-37 fi. fa. and the current property owner of record shall
4-38 be listed in a notice to be published not less than once
4-39 a week for three weeks during the 90 day period prior to
4-40 levy in the legal organ of the county in which the
4-41 execution was issued.
4-42 (c)(b) No Except as provided in subsection (c), no person
4-43 may pay an execution issued for ad valorem property taxes
4-44 and thereby become the transferee of such execution as
-4-
5- 1 provided in subsection (a) of this Code section if the
5- 2 person is not a lawful heir or an equity holder in such
5- 3 property unless and until:
5- 4 (1) Such person has notified the individual against whom
5- 5 the execution has was issued by certified mail, and,
5- 6 with respect to single-family residences and duplexes,
5- 7 notified the occupant thereof by first-class mail, of
5- 8 his such person's intention to pay such execution and
5- 9 unless and until 60 days have elapsed since the giving
5-10 of such notice; or
5-11 (2) In the event that such notice by certified mail is
5-12 returned undelivered, such person shall be required to
5-13 publish such notice not less than once a week for three
5-14 weeks in the legal organ of the county in which the
5-15 execution was entered on the general execution docket of
5-16 the superior court. Such person shall be required to
5-17 show proof to the tax official who issued the execution
5-18 that such notice was advertised in compliance with this
5-19 paragraph.
5-20 (c)(1) As used in this subsection, the term:
5-21 (A) 'Delinquent taxpayer' means the person against
5-22 whom an execution has been issued.
5-23 (B) 'Execution' means an execution issued for the
5-24 collection of any ad valorem taxes, fees, penalties,
5-25 interest, or collection costs due the state or any
5-26 political subdivision thereof.
5-27 (C) 'Governing authority' means the county governing
5-28 authority when the tax executions have been issued for
5-29 state and county taxes or a combination of state,
5-30 county, and city taxes; or the municipal governing
5-31 authority when the tax executions have been issued for
5-32 city taxes alone.
5-33 (D) 'Lot block of executions' means a group of more
5-34 than one execution of which the aggregate principal
5-35 amount is not less than $10,000.00.
5-36 (E) 'Transferee' means a person paying for a lot block
5-37 of executions for the purpose of having those
5-38 executions and all the rights to enforce collection
5-39 thereof transferred to him or her.
-5-
6- 1 (F) 'Transferor' means the official holding the tax
6- 2 executions and authorized to collect or transfer such
6- 3 tax executions.
6- 4 (2) Except for transferees who provide 60 days' notice
6- 5 pursuant to paragraph (1) of subsection (b) of this Code
6- 6 section and who purchase such lot blocks of executions
6- 7 for the full, undiscounted principal amount of the
6- 8 executions and interest due thereon, no transferee may,
6- 9 within a single calendar year, pay and have transferred
6-10 to such transferee executions for which the aggregate
6-11 principal amount is more than $10,000.00 without first
6-12 entering into a written agreement with the transferor
6-13 approved by the governing authority and entered onto the
6-14 minutes at a regular meeting. Such agreement shall
6-15 include, but not be limited to, the following
6-16 provisions:
6-17 (A) The aggregate principal amount of each group of
6-18 executions transferred shall be in lot blocks of not
6-19 less than $10,000.00;
6-20 (B) No lot block may include one or more executions
6-21 against the same delinquent taxpayer that exceed, in
6-22 principal amount, 20 percent of the total principal
6-23 amount of the executions in the lot block of
6-24 executions transferred;
6-25 (C) In the event any execution transferred is later
6-26 determined to have been issued in error, the
6-27 transferee will cease and desist from all collection
6-28 efforts, remove the associated entries from any
6-29 execution dockets on which it has been entered, remove
6-30 any negative reports that may have been submitted to
6-31 credit reporting agencies regarding the erroneous
6-32 execution, and return the execution to the transferor.
6-33 In return, the transferor shall reimburse the
6-34 transferee the amount paid for the execution at the
6-35 time of transfer without any additional fees,
6-36 penalties, interest, and collection costs that may
6-37 have been incurred by the transferee since the
6-38 transfer. The transferor shall deduct such
6-39 reimbursement from subsequent remittances of taxes,
6-40 fees, penalties, and interest collections to the
6-41 levying authorities in the same proportion as the
6-42 payment received from the transferee for the execution
6-43 transferred in error was disbursed. Provided,
6-44 however, the transferor and the transferee may allow
-6-
7- 1 for the collection of certain fees, penalties,
7- 2 interest, or costs by the transferee from the
7- 3 transferor when expressly stated in the contract
7- 4 negotiated between the parties;
7- 5 (D) The transferee shall maintain a reasonably
7- 6 accessible office within the State of Georgia where
7- 7 delinquent taxpayers may come or call to inquire about
7- 8 their execution and make arrangements to pay the same;
7- 9 (E) The transferee may begin collection proceedings
7-10 immediately after the transfer; however, the
7-11 transferee shall, within 60 days after transfer of the
7-12 executions, send a notice to each delinquent taxpayer
7-13 that has not yet settled such delinquent taxpayer's
7-14 execution indicating the transferee is now holding
7-15 such execution. Such notice shall include, but not be
7-16 limited to, the payment amount necessary to settle the
7-17 execution, the rate of accumulation of additional
7-18 charges authorized by law on the execution, the
7-19 payment terms and options available to the delinquent
7-20 taxpayer, the actions that will be taken by the
7-21 transferee if the execution is not settled in a timely
7-22 manner, and a statement explaining the rights of the
7-23 delinquent taxpayer to stop all collection efforts if
7-24 the execution has been issued in error;
7-25 (F) The transferee shall, immediately after the
7-26 execution has been settled, indicate such settlement
7-27 on any execution dockets where the execution has been
7-28 entered and submit a statement indicating such
7-29 settlement to any credit reporting agencies to which
7-30 negative reports were submitted by the transferee
7-31 regarding the execution;
7-32 (G) Unless otherwise provided by the agreement between
7-33 transferee and transferor, prior to enforcement of the
7-34 collection of transferred executions, the transferee
7-35 shall perform a title examination pursuant to the
7-36 current Title Standards as promulgated by the Real
7-37 Property Section of the State Bar of Georgia and, upon
7-38 request by the governing authority, provide a copy of
7-39 such title examination and related title documents to
7-40 the sheriff of the county prior to enforcement of the
7-41 transferred executions by levy and sale;
7-42 (H) Preexisting agreements under this Code section in
7-43 effect prior to the effective date of this Act which
-7-
8- 1 were approved by the governing authority shall remain
8- 2 in full force and effect until termination by the
8- 3 governing authority; and
8- 4 (I) Responsibility for amounts expended for any
8- 5 mailing or publication costs associated with
8- 6 notification pursuant to paragraph (3) of subsection
8- 7 (c) of this Code section.
8- 8 (3) Before the governing authority may agree to the
8- 9 transfer of executions in lot blocks, it shall notify
8-10 the delinquent taxpayers of its intention to authorize
8-11 such transfers. Such notice shall be sent by regular
8-12 mail and shall advise the delinquent taxpayers against
8-13 whom the selected executions have been issued that they
8-14 have 90 days in which to pay the transferor the amount
8-15 of the execution plus any fees, penalties, interest, and
8-16 costs that may have accrued or the executions will be
8-17 transferred to a private company for collection. In the
8-18 event that such notice sent by regular mail is returned
8-19 undelivered, or the identity of the delinquent taxpayer
8-20 is unknown to the governing authority, the governing
8-21 authority shall be required to publish such notice not
8-22 less than once a week for three weeks in the legal organ
8-23 of the county in which the execution was entered on the
8-24 general execution docket of the superior court. In
8-25 either event, the transferor shall not be authorized to
8-26 transfer the executions until this notice has been made
8-27 and the 90 day payment period has transpired. The
8-28 transferor shall be authorized to transfer the balance
8-29 of the executions in the lot block that are unpaid at
8-30 the expiration of the notice period even though as a
8-31 result of some of the executions being settled during
8-32 the notice period subparagraphs (A) and (B) of paragraph
8-33 (2) of this subsection are no longer complied with.
8-34 (4) Upon compliance with any bidding requirements that
8-35 may be required by law, the governing authority shall be
8-36 authorized to allow a discount of up to 10 percent of
8-37 the amount of the execution; provided, however, that
8-38 when a portion of the execution represents taxes, fees,
8-39 penalty, and interest due the state, no part of the
8-40 discount shall be deducted from such portion and the
8-41 discount applicable to the state's portion of the
8-42 execution amount shall be absorbed by the governing
8-43 authority. Any discount allowed by the governing
8-44 authority shall not affect the amount due under the
-8-
9- 1 execution and the transferee shall have the right to
9- 2 collect the full amount of the execution as if no
9- 3 discount had been allowed.
9- 4 (d) In addition to the provisions of subsection (c) of
9- 5 this Code section, no No person may pay an execution
9- 6 issued for ad valorem property taxes and thereby become
9- 7 the transferee of such execution as provided in subsection
9- 8 (a) of this Code section if:
9- 9 (1) The property which is the subject of the tax
9-10 execution has been included among a list of properties
9-11 identified recommended by the local tax official, as
9-12 authorized and approved by the local governing
9-13 authority, as eligible for exclusion from transfer of
9-14 execution;
9-15 (2) A public hearing has been held on the issue of
9-16 excluding such property from eligibility for transfer of
9-17 execution; and
9-18 (3) Following the public hearing, the governing
9-19 authority of the county or municipality, as applicable,
9-20 has, in its discretion, approved the property for
9-21 exclusion from transfer of execution based on a
9-22 determination that such exclusion is in the best
9-23 interest of the public.
9-24 (e) The person to whom a tax execution is transferred as
9-25 provided in this Code section or such person's successor
9-26 or assigns shall not charge the person against whom such
9-27 execution was issued for the release or satisfaction of
9-28 such execution more than the the total of:
9-29 (1) The amount paid on the tax execution plus interest
9-30 from the date of such transfer on such amount calculated
9-31 at a rate not exceeding 12 percent per annum; and any
9-32 other costs associated with the filing of a transferred
9-33 tax execution on any general execution docket.
9-34 (2) Recording fees actually expended in recording the
9-35 transferred execution on the general execution docket of
9-36 the county in which the execution was issued and the
9-37 general execution docket of the county in which the
9-38 person against whom the execution was issued resides, if
9-39 different from the county in which the execution was
9-40 issued. If a discount from the face amount of the tax
9-41 execution has been allowed the person to whom a tax
9-42 execution has been transferred in accordance with
-9-
10- 1 subsection (c) of this Code section, the person against
10- 2 whom such execution was issued may be charged the full
10- 3 face amount of the execution plus interest and recording
10- 4 fees as stated in this subsection. This limitation on
10- 5 the amount charged for release or satisfaction of an
10- 6 execution shall be absolute, and it shall be unlawful to
10- 7 charge any other fees or charges of any kind for such a
10- 8 release or satisfaction."
10- 9 SECTION 2.
10-10 This Act shall become effective upon its approval by the
10-11 Governor or upon its becoming law without such approval.
10-12 SECTION 3.
10-13 All laws and parts of laws in conflict with this Act are
10-14 repealed.
-10-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98