| SB 169 - Tax Executions - tax liens, collection |
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 provide
for the transfer of certain tax liens; to provide for the
identification of such tax lienholders for purpose of payment by
a delinquent taxpayer; to provide for the time at which a
transferee of the original transferee of an execution may begin
collection of a tax lien.
| RECORDED VOTES |
| Vote # |
Date |
Yeas |
Nays |
Description |
| SV0193 |
3/04/99 |
053 |
000 |
PASSAGE |
| Senate |
Action |
House |
| 2/16/99 |
Read 1st time |
3/8/99 |
| 3/1/99 |
Favorably Reported |
|
| 3/2/99 |
Read 2nd Time |
3/9/99 |
| 3/4/99 |
Read 3rd Time |
|
| 3/4/99 |
Passed/Adopted |
|
SB 169 99 LC 9 9966
SENATE BILL 169
By: Senators Hecht of the 34th, Lee of the 29th and Meyer von
Bremen of the 12th
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 provide for the transfer of certain tax liens; to provide
1- 4 for the identification of such tax lienholders for purpose
1- 5 of payment by a delinquent taxpayer; to provide for the time
1- 6 at which a transferee of the original transferee of an
1- 7 execution may begin collection of a tax lien; to provide
1- 8 periods for giving notice to delinquent taxpayers; to
1- 9 provide for the transfer of executions; to provide for the
1-10 creation of security interests in tax executions; to amend
1-11 Article 1 of Chapter 4 of Title 48 of the Official Code of
1-12 Georgia Annotated, relating to sales under tax executions,
1-13 so as to provide for the transfer of tax deeds; to repeal
1-14 conflicting laws; and for other purposes.
1-15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-16 SECTION 1.
1-17 Chapter 3 of Title 48 of the Official Code of Georgia
1-18 Annotated, relating to tax executions, is amended by
1-19 striking in its entirety Code Section 48-3-19, relating to
1-20 transfer of executions, and inserting in lieu thereof a new
1-21 Code section to read as follows:
1-22 "48-3-19.
1-23 (a)(1) Whenever any person other than the person against
1-24 whom an execution has been issued pays an execution
1-25 issued for state, county, or municipal taxes and proves
1-26 compliance with subsection (b) of this Code section for
1-27 individual transfers or subsection (c) of this Code
1-28 section for transfers in lot blocks, the officer whose
1-29 duty it is to enforce the execution, upon the request of
1-30 the party paying the execution, shall transfer the
1-31 execution to the party so paying. The person to whom
1-32 the execution is transferred shall have the same rights
1-33 as to enforcing the execution and priority of payment as
1-34 might have been exercised or claimed before the
-1-
2- 1 transfer, if, within 30 days of the transfer, the person
2- 2 to whom the execution is transferred has the execution
2- 3 entered or a transfer thereof showing as the transferee
2- 4 of such execution the person to whom such execution is
2- 5 transferred (or such person's trustee, custodian, agent,
2- 6 or servicer from which delinquent taxpayers may inquire
2- 7 about their execution and make arrangements to pay the
2- 8 same) filed for entry on the general execution docket of
2- 9 the superior court of the county in which the execution
2-10 was issued and, if the person against whom the execution
2-11 was issued resides in a different county, has the such
2-12 execution entered or transfer filed for entry on the
2-13 general execution docket of the superior court in the
2-14 county of such person's residence. In default of the
2-15 required entry filing, the execution shall lose its lien
2-16 upon any property which has been transferred in good
2-17 faith and for a valuable consideration before the entry
2-18 filing and without notice of the existence of the
2-19 execution. The provisions of this paragraph subsection
2-20 (a) of this Code section with respect to enforcement
2-21 rights of the transferee shall in no manner supersede
2-22 the provisions of subsection (e) of this Code section
2-23 which limit the amounts which the transferee may charge
2-24 for a release of the execution.
2-25 (2) The original transferee of an execution pursuant to
2-26 paragraph (1) of subsection (a) of this Code section
2-27 (and any subsequent transferees thereof) may further
2-28 transfer ownership of such execution voluntarily,
2-29 through the enforcement of a security interest in the
2-30 execution, or otherwise by operation of law. Each
2-31 transferee thereof shall have the same rights as to
2-32 enforcing the execution and priority of payment as might
2-33 have been exercised or claimed before the transfer to
2-34 such transferee if such transferee shall comply with the
2-35 filing requirements imposed upon the original transferee
2-36 under paragraph (1) of subsection (a) of this Code
2-37 section; provided, however, that such filing shall not
2-38 be required if the most recent prior transfer filed for
2-39 entry on the general execution docket pertaining to such
2-40 execution shows a trustee, custodian, agent, or servicer
2-41 from which the delinquent taxpayer may inquire about its
2-42 execution and make arrangements to pay the same, and the
2-43 identity of such trustee, custodian, agent, or servicer
2-44 remains the same after such transfer.
-2-
3- 1 (2)(3)(A) It shall be unlawful for any tax official
3- 2 covered by this paragraph to pay a tax execution in
3- 3 order to obtain a transfer of the execution under this
3- 4 Code section. It shall be unlawful for any employee
3- 5 of a tax official covered by this paragraph to pay a
3- 6 tax execution in order to obtain a transfer of the
3- 7 execution under this Code section. The tax officials
3- 8 covered by this paragraph are:
3- 9 (i) County tax receivers, tax collectors, and tax
3-10 commissioners;
3-11 (ii) Members of county boards of tax assessors;
3-12 (iii) Members of county boards of equalization; and
3-13 (iv) County tax appraisers.
3-14 (B) Any execution transferred in violation of
3-15 subparagraph (A) of this paragraph shall be void and
3-16 unenforceable by the person obtaining the execution
3-17 and such person's successors in interest.
3-18 (C) Any tax official or employee of a tax official
3-19 violating subparagraph (A) of this paragraph shall
3-20 upon conviction be guilty of a misdemeanor.
3-21 (b)(1) Except as provided in subsection (c) of this Code
3-22 section, no person may pay an execution issued for ad
3-23 valorem property taxes and thereby become the transferee
3-24 of such execution as provided in paragraph (1) of
3-25 subsection (a) of this Code section if the person is not
3-26 a lawful heir or an equity holder in such property
3-27 unless and until:
3-28 (1)(A) Such person has notified the individual against
3-29 whom the execution was issued by certified mail, and,
3-30 with respect to single-family residences and duplexes,
3-31 notified the occupant thereof by first-class mail, of
3-32 such person's intention to pay such execution and
3-33 unless and until 60 days have elapsed since the giving
3-34 of such notice; or
3-35 (2)(B) In the event that such notice by certified mail
3-36 is returned undelivered, such person shall be required
3-37 to publish such notice not less than once a week for
3-38 three weeks in the legal organ of the county in which
3-39 the execution was entered on the general execution
3-40 docket of the superior court. Such person shall be
3-41 required to show proof to the tax official who issued
-3-
4- 1 the execution that such notice was advertised in
4- 2 compliance with this paragraph subparagraph.
4- 3 (2) A transferee of the original transferee of an
4- 4 execution (or of any subsequent transferees thereof) may
4- 5 begin collection proceedings immediately after the
4- 6 transfer; however, the transferee shall, within 60 days
4- 7 after transfer of the execution, send a notice to any
4- 8 delinquent taxpayer that has not yet settled such
4- 9 delinquent taxpayer's execution indicating the
4-10 transferee is now holding such execution; provided,
4-11 however, that such notice shall not be required if the
4-12 most recent prior transfer filed for entry on the
4-13 general execution docket pertaining to such execution
4-14 shows a trustee, custodian, agent, or servicer from
4-15 which the delinquent taxpayer may inquire about its
4-16 execution and make arrangements to pay the same, and the
4-17 identity of such trustee, custodian, agent, or servicer
4-18 remains the same after such transfer.
4-19 (c)(1) As used in this subsection, the term:
4-20 (A) 'Delinquent taxpayer' means the person against
4-21 whom an execution has been issued.
4-22 (B) 'Execution' means an execution issued for the
4-23 collection of any ad valorem taxes, fees, penalties,
4-24 interest, or collection costs due the state or any
4-25 political subdivision thereof.
4-26 (C) 'Governing authority' means the county governing
4-27 authority when the tax executions have been issued for
4-28 state and county taxes or a combination of state,
4-29 county, and city taxes; or the municipal governing
4-30 authority when the tax executions have been issued for
4-31 city taxes alone.
4-32 (D) 'Lot block of executions' means a group of more
4-33 than one execution of which the aggregate principal
4-34 amount is not less than $10,000.00.
4-35 (E) 'Transferee' means a person paying for a lot block
4-36 of executions for the purpose of having those
4-37 executions and all the rights to enforce collection
4-38 thereof transferred to him or her.
4-39 (F) 'Transferor' means the official holding the tax
4-40 executions and authorized to collect or transfer such
4-41 tax executions.
-4-
5- 1 (2) Except for transferees who provide 60 days' notice
5- 2 pursuant to subparagraph (A) of paragraph (1) of
5- 3 subsection (b) of this Code section and who purchase
5- 4 such lot blocks of executions for the full, undiscounted
5- 5 principal amount of the executions and interest due
5- 6 thereon, no transferee may, within a single calendar
5- 7 year, pay and have transferred to such transferee
5- 8 executions for which the aggregate principal amount is
5- 9 more than $10,000.00 without first entering into a
5-10 written agreement with the transferor approved by the
5-11 governing authority and entered onto the minutes at a
5-12 regular meeting. Such agreement shall include, but not
5-13 be limited to, the following provisions:
5-14 (A) The aggregate principal amount of each group of
5-15 executions transferred shall be in lot blocks of not
5-16 less than $10,000.00;
5-17 (B) No lot block may include one or more executions
5-18 against the same delinquent taxpayer that exceed, in
5-19 principal amount, 20 percent of the total principal
5-20 amount of the executions in the lot block of
5-21 executions transferred;
5-22 (C) In the event any execution transferred is later
5-23 determined to have been issued in error, the
5-24 transferee will cease and desist from all collection
5-25 efforts, remove the associated entries from any
5-26 execution dockets on which it has been entered, remove
5-27 any negative reports that may have been submitted to
5-28 credit reporting agencies regarding the erroneous
5-29 execution, and return the execution to the transferor.
5-30 In return, the transferor shall reimburse the
5-31 transferee the amount paid for the execution at the
5-32 time of transfer without any additional fees,
5-33 penalties, interest, and collection costs that may
5-34 have been incurred by the transferee since the
5-35 transfer. The transferor shall deduct such
5-36 reimbursement from subsequent remittances of taxes,
5-37 fees, penalties, and interest collections to the
5-38 levying authorities in the same proportion as the
5-39 payment received from the transferee for the execution
5-40 transferred in error was disbursed. Provided,
5-41 however, the transferor and the transferee may allow
5-42 for the collection of certain fees, penalties,
5-43 interest, or costs by the transferee from the
-5-
6- 1 transferor when expressly stated in the contract
6- 2 negotiated between the parties;
6- 3 (D) The transferee or its trustee, custodian, agent,
6- 4 or servicer shall maintain a reasonably accessible
6- 5 office within the State of Georgia where delinquent
6- 6 taxpayers may come or call to inquire about their
6- 7 execution and make arrangements to pay the same;
6- 8 (E) The transferee may begin collection proceedings
6- 9 immediately after the transfer; however, the
6-10 transferee shall, within 60 days after transfer of the
6-11 executions, send a notice to each delinquent taxpayer
6-12 that has not yet settled such delinquent taxpayer's
6-13 execution indicating the transferee is now holding
6-14 such execution. Such notice shall include, but not be
6-15 limited to, the payment amount necessary to settle the
6-16 execution, the rate of accumulation of additional
6-17 charges authorized by law on the execution, the
6-18 payment terms and options available to the delinquent
6-19 taxpayer, the actions that will be taken by the
6-20 transferee if the execution is not settled in a timely
6-21 manner, and a statement explaining the rights of the
6-22 delinquent taxpayer to stop all collection efforts if
6-23 the execution has been issued in error;
6-24 (F) The transferee shall, immediately after the
6-25 execution has been settled, indicate such settlement
6-26 on any execution dockets where the execution has been
6-27 entered and submit a statement indicating such
6-28 settlement to any credit reporting agencies to which
6-29 negative reports were submitted by the transferee
6-30 regarding the execution;
6-31 (G) Unless otherwise provided by the agreement between
6-32 transferee and transferor, prior to enforcement of the
6-33 collection of transferred executions, the transferee
6-34 shall perform a title examination pursuant to the
6-35 current Title Standards as promulgated by the Real
6-36 Property Section of the State Bar of Georgia and, upon
6-37 request by the governing authority, provide a copy of
6-38 such title examination and related title documents to
6-39 the sheriff of the county prior to enforcement of the
6-40 transferred executions by levy and sale;
6-41 (H) Preexisting agreements under this Code section in
6-42 effect prior to April 14, 1997, which were approved by
6-43 the governing authority shall remain in full force and
-6-
7- 1 effect until termination by the governing authority;
7- 2 and
7- 3 (I) Responsibility for amounts expended for any
7- 4 mailing or publication costs associated with
7- 5 notification pursuant to paragraph (3) of this
7- 6 subsection.
7- 7 (3) Before the governing authority may agree to the
7- 8 transfer of executions in lot blocks, it shall notify
7- 9 the delinquent taxpayers of its intention to authorize
7-10 such transfers. Such notice shall be sent by regular
7-11 mail and shall advise the delinquent taxpayers against
7-12 whom the selected executions have been issued that they
7-13 have 90 days in which to pay the transferor the amount
7-14 of the execution plus any fees, penalties, interest, and
7-15 costs that may have accrued or the executions will be
7-16 transferred to a private company for collection. In the
7-17 event that such notice sent by regular mail is returned
7-18 undelivered, or the identity of the delinquent taxpayer
7-19 is unknown to the governing authority, the governing
7-20 authority shall be required to publish such notice not
7-21 less than once a week for three weeks in the legal organ
7-22 of the county in which the execution was entered on the
7-23 general execution docket of the superior court. In
7-24 either event, the transferor shall not be authorized to
7-25 transfer the executions until this notice has been made
7-26 and the 90 day payment period has transpired. The
7-27 transferor shall be authorized to transfer the balance
7-28 of the executions in the lot block that are unpaid at
7-29 the expiration of the notice period even though as a
7-30 result of some of the executions being settled during
7-31 the notice period subparagraphs (A) and (B) of paragraph
7-32 (2) of this subsection are no longer complied with.
7-33 (4) Upon compliance with any bidding requirements that
7-34 may be required by law, the governing authority shall be
7-35 authorized to allow a discount of up to 10 percent of
7-36 the amount of the execution; provided, however, that
7-37 when a portion of the execution represents taxes, fees,
7-38 penalty, and interest due the state, no part of the
7-39 discount shall be deducted from such portion and the
7-40 discount applicable to the state's portion of the
7-41 execution amount shall be absorbed by the governing
7-42 authority. Any discount allowed by the governing
7-43 authority shall not affect the amount due under the
7-44 execution and the transferee shall have the right to
-7-
8- 1 collect the full amount of the execution as if no
8- 2 discount had been allowed.
8- 3 (5) An original transferee of executions pursuant to
8- 4 this subsection (or any subsequent transferees thereof)
8- 5 may further transfer ownership of any such executions
8- 6 voluntarily, through the enforcement of security
8- 7 interests in the executions or otherwise by operation of
8- 8 law. Each transferee thereof shall have the same rights
8- 9 as to enforcing the transferred executions and priority
8-10 of payment as might have been exercised or claimed
8-11 before the transfer to such transferee if the transferee
8-12 assumes the obligations of the transferor under any
8-13 written agreement required under paragraph (2) of this
8-14 subsection and, if such a written agreement exists, the
8-15 governing authority approves or has approved the
8-16 transfer thereof to the transferee, or has previously
8-17 approved the granting of a security interest in the
8-18 executions to the transferee, or said written agreement
8-19 permits such transfer by its terms.
8-20 (6) A transferee of the original transferee of
8-21 executions pursuant to this subsection (or of any
8-22 subsequent transferees thereof) may begin collection
8-23 proceedings immediately after the transfer; however, the
8-24 transferee shall, within 60 days after transfer of the
8-25 executions, send a notice to each delinquent taxpayer
8-26 that has not yet settled such delinquent taxpayer's
8-27 execution indicating the transferee is now holding such
8-28 execution; provided, however, that such notice shall not
8-29 be required if the immediately prior notice to such
8-30 delinquent taxpayer showed a trustee, custodian, agent,
8-31 or servicer from which the delinquent taxpayer may
8-32 inquire about its execution and make arrangements to pay
8-33 the same, and such trustee, custodian, agent, or
8-34 servicer remains the same after such transfer.
8-35 (d) No person may pay an execution issued for ad valorem
8-36 property taxes and thereby become the transferee of such
8-37 execution as provided in subsection (a) of this Code
8-38 section if:
8-39 (1) The property which is the subject of the tax
8-40 execution has been included among a list of properties
8-41 recommended by the local tax official and approved by
8-42 the local governing authority, as eligible for exclusion
8-43 from transfer of execution;
-8-
9- 1 (2) A public hearing has been held on the issue of
9- 2 excluding such property from eligibility for transfer of
9- 3 execution; and
9- 4 (3) Following the public hearing, the governing
9- 5 authority of the county or municipality, as applicable,
9- 6 has, in its discretion, approved the property for
9- 7 exclusion from transfer of execution based on a
9- 8 determination that such exclusion is in the best
9- 9 interest of the public.
9-10 (e) The person to whom a tax execution is transferred as
9-11 provided in this Code section or such person's successor
9-12 or assigns shall not charge the person against whom such
9-13 execution was issued for the release or satisfaction of
9-14 such execution more than the total of:
9-15 (1) The amount paid on the tax execution plus interest
9-16 from the date of such transfer on such amount calculated
9-17 at a rate not exceeding 12 percent per annum; and
9-18 (2) Unless otherwise provided by law, recording fees,
9-19 and where the principal amount of tax execution exceeds
9-20 $1,500.00, title search fees not to exceed $150.00,
9-21 actually expended in recording the transferred execution
9-22 on the general execution docket of the county in which
9-23 the execution was issued and the general execution
9-24 docket of the county in which the person against whom
9-25 the execution was issued resides, if different from the
9-26 county in which the execution was issued. If a discount
9-27 from the face amount of the tax execution has been
9-28 allowed the person to whom a tax execution has been
9-29 transferred in accordance with subsection (c) of this
9-30 Code section, the person against whom such execution was
9-31 issued may be charged the full face amount of the
9-32 execution plus interest and recording fees as stated in
9-33 this subsection. This limitation on the amount charged
9-34 for release or satisfaction of an execution shall be
9-35 absolute, and it shall be unlawful to charge any other
9-36 fees or charges of any kind for such a release or
9-37 satisfaction.
9-38 (f) An owner of executions acquired pursuant to this Code
9-39 section may create security interests therein. The
9-40 creation, perfection, priority, and enforcement of such
9-41 security interests and the rights of the debtor and
9-42 secured party with respect thereto shall be the same as is
9-43 provided by Article 9 of Title 11, the Uniform Commercial
-9-
10- 1 Code -- Secured Transactions, with respect to 'general
10- 2 intangibles' as defined in Code Section 11-9-106. In
10- 3 furtherance of the foregoing, financing statements
10- 4 describing executions as collateral may be filed in the
10- 5 records provided under Article 9 of Title 11 for the
10- 6 recording of financing statements describing 'general
10- 7 intangibles' as defined in Code Section 11-9-106.
10- 8 (g) Ownership of a tax execution may be transferred by a
10- 9 writing containing common words of conveyancing for
10-10 personal property and an adequate identification of the
10-11 subject tax execution."
10-12 SECTION 2.
10-13 Article 1 of Chapter 4 of Title 48 of the Official Code of
10-14 Georgia Annotated, relating to sales under tax executions,
10-15 is amended by striking Code Section 48-4-6 and inserting in
10-16 its place the following:
10-17 "48-4-6.
10-18 (a) The deed or bill of sale made by the sheriff to the
10-19 purchaser at a tax sale shall be just as valid as if made
10-20 under an ordinary execution issuing from the superior
10-21 court.
10-22 (b) During the redemption period provided by applicable
10-23 law and prior to becoming absolute as provided by
10-24 applicable law, the ownership interest of a grantee under
10-25 a tax deed may be conveyed by deed in accordance with the
10-26 normal method of conveying real estate under Georgia law
10-27 and also may be transferred by deed to secure debt or
10-28 encumbered by a mortgage in accordance with applicable
10-29 Georgia law with respect to deeds to secure debt and
10-30 mortgages."
10-31 SECTION 3.
10-32 All laws and parts of laws in conflict with this Act are
10-33 repealed.
-10-
Secretary of the Senate
Frank Eldridge, Jr., Secretary
Last Updated on 05/15/00
