[Sheila Reiner]

#1485

Senate Bill 23-052 Under current law, a municipality may levy a lien against real property for costs associated with removing weeds, brush, and other rubbish from the property. The lien has priority over other liens, except liens for general taxes and prior special assessments imposed by a municipality. After a foreclosure action is initiated for unpaid property taxes, a person may obtain a treasurer’s deed, which provides a purchase title to real property that is free and clear of most prior encumbrances, including liens, if certain conditions are met. The bill specifies that a municipal lien for the costs of removing weeds, brush, and other rubbish survives the issuance of a treasurer’s deed.

Please provide your thoughts on this bill – feedback is needed and a position must be taken within the week.
01/25/23

[Mark Czelusta]

#1486

TELLER COUNTY VOTES “NO”

1. This is problematic in remote/rural areas, where the cost of clean-up could exceed the market value of the property. Example: In Teller County we have 2 former Gold District mining towns, one of them is Victor. I just recently signed a TD on a vacant lot in Victor. This lot has a market value of about $1,800.00 (yes…eighteen hundred.) The City of Victor levied a $7,800 lien on the property for clean up. If this lien had survived the TD, it is conceivable that the associated tax lien would not have sold at the annual TLS…as my investors do their homework. So…the tax lien enters the county held list, where it sits for 30 years, when a BOCC in the future cancels the tax lien, thereby denying (possibly) the municipality revenue not only from the municipal lien (that will never get paid), but also the property tax revenue.

2. If the municipality does its homework and keeps track of things…it can convert the municipal lien to a special assessment…if it makes sense vis-a-vis the market value. This is a capability under CRS 31-20-105.

[Sheila Reiner]

#1487

Mesa will oppose. It is a specific issue they are trying to solve in one county that has previously taken longer than statutorily allowed to process a Treasurer’s Deed. I agree with Mark that the municipality has other options rather than making a tax lien sale property unattractive for investors. If a lien for cleanup survives a Treasurer’s Deed then investors won’t apply and it will become a county held lien and no one will get their money.

[Teak Simonton]

#1488

Eagle County also votes no, but if we end up without a consensus no vote and / or the bill passes anyway, perhaps there are amendments that could make it more palatable. For instance, there could be a limit for the amount of such lien representing a certain % of the current appraised value – no more than 10% perhaps? Or, if a lien value is more than 50% of the value, the municipality would be required to redeem the tax lien holder and then the municipality could file for the Treasurer’s Deed, restore and sell the property afterwards.

[Michelle Swan]

#1489

Washington County votes no, we currently receive what the Town refers to as “Abatement of Nuisance” for mowing or trash clean up. We put them on as Special Assessments.

[Chrystal Hammond]

#1490

I agree with Mark. Yuma County votes no.

[Irene Josey]

#1491

Larimer is very strongly opposed! SB23-052 – Municipal property lien surviving Treasurer’s Deed. This is a one-county issue. Pueblo County has a new treasurer who we, as an association, can help the treasurer make this process smoother for the City of Pueblo. The Treasurer can and should issue the Treasurer’s Deed within six months or less. The city feels it is its responsibility to clean up a vacated property at its expense and pass the costs to the current owner. Sometimes the city cleans up a property while there is a deed application in process. The clean-up can be expensive and the city can’t recoup its funds by certifying the amount to the treasurer because there is a treasurer deed application on the property. Also, the Treasurer’s Deed can only be applied for after 3 years of delinquent taxes, therefore the communication between the entities is important to make sure the city isn’t cleaning up properties while a TD is in process. Two things are clear: The treasurer needs to issue the deed within six months. The city needs to confer with the treasurer’s office before cleaning up a property at the taxpayer’s expense so that cost vs benefit can be properly determined. In my 37 years doing this work, this is the first time this has
been an issue and doesn’t require legislative involvement.

[Rosemary Murphy]

#1492

Montrose County = Oppose

[Mark Czelusta]

#1493

Teak brings up a huge and important point. We just can’t oppose. We need to be ready to “shape” the legislation to make it palatable. It is not good enough to just oppose. Thank you, Teak.

[Jozy Stegman]

#1494

Baca County votes no. Everything that we have from municipalities is special assessments. This includes mowing, building removal, water and sewer charges etc. I have a few that have large amounts assessed to the taxes and they are county held and will never be paid because no one will want to pay the huge fee.

[Jill Mihelich]

#1495

Ouray County votes No

[Diana Flory]

#1496

Kiowa County votes no to this Senate Bill. This would be hard in rural Colorado.

[Marcy Wheatley]

#1497

Grand County – opposes

[Judy Wittman]

#1498

Prowers County opposes this bill, I agree with Irene and do not think it needs to be legislated. Communication is the key!

[Sheryl Hewlett]

#1499

Elbert County is inclined to oppose.

One of the towns here certify water, sewer, trash and clean up to us for a SA collection, and have done so for many years.

Some years back we had Chaparral Valley subdivision collect a SA for road improvement. The property owners had the option to pay the SA in full at time of inception OR amortize it out over a period of years with the understanding they would also pay amortized interest. We collected this SA through 2021 taxes due 2022.

If any of these properties with SA attached went to tax lien sale, the investor who purchased the lien paid the SA. The town and Chaparral Valley received their payment through distribution the following month.

I agree with Jill in Ouray regarding reference to foreclosure “After a foreclosure action is initiated for unpaid property taxes, a person may obtain a treasurer’s deed”. Properties are not foreclosed on for unpaid property taxes. I also agree with that this shouldn’t be a legislative issue.

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