The Idaho Legislature passed legislation that seeks to close a loophole of government taking surplus proceeds in excess of debts owed.
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Currently, when the state government takes property for outstanding property tax debts, they can sell the property and retain the amounts owed for the debt. They are to then pay the remaining proceeds to the former property owner.
The bill’s statement of purpose states, “A loophole exists in Idaho code where the government could transfer the property to another government entity and consequently not disburse any amount back to the former property owner. Thus, the property owner would lose any equity in the property. This legislation prevents a government entity from doing so.”
It states, “In addition to any other powers granted by law, the board of county commissioners may at their discretion, grant to or exchange with the federal government, the state of Idaho, any political subdivision or taxing district of the state of Idaho or any local historical society which is incorporated as an Idaho nonprofit corporation which operates primarily in the county or maintains a museum in the county, with or without compensation, any real or personal property or any interest in such property owned by the county, excluding such property acquired by tax deed on or after July 1, after adoption of a resolution by the board of county commissioners that the grant or exchange property is in the public interest. Notice of such grant or exchange shall be as provided in Subsection 1 of this section and the decision may be made at any regularly or specially scheduled meeting of the board of county commissioners. The execution and delivery by the county of the deed conveying an interest in the property shall operate to discharge and cancel all levies, liens, and taxes made or created for the benefit of the state, county or any other political subdivision or taxing district and to cancel all titles or claims of title including claims of redemption to such real property asserted or existing at the time of such conveyance. However, if the property conveyed is subject to a lien for one or more unsatisfied special assessments, the lien shall continue until all special assessments have been paid in full. At no time shall a lien for a special assessment be extinguished prior to such special assessment having been paid in full. Any property conveyed to any local historical society by the county shall revert to the county when the property is no longer utilized for the purpose for which it was conveyed.”
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