COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

November 21, 2006

BOARD MEETING DATE:

December 12, 2006

SPECIAL NOTICE/HEARING:

None Required

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Claims for Excess Proceeds from the Tax Sale of Parcel 022-320-170 made by the San Mateo County Tax Collector and Melvin S. Thompson

RECOMMENDATION:

Grant the claims to the excess proceeds from the sale of Parcel No. 022-320-170 to the San Mateo County Tax Collector in the amount of $200.67 and to Melvin S. Thompson in the amount of $41,044.54.

VISION ALIGNMENT:

By complying with the provisions of the Revenue and Taxation Code pertaining to claims for excess proceeds, the Office of the Tax Collector demonstrates its commitment to Goal 21 of the Visioning Project, which states that “County employees understand, support, and integrate the County vision and goals into their delivery of services”.

DISCUSSION:

Revenue and Taxation Code section 4675 provides for distribution of the excess proceeds of tax sales. When property is sold for payment of taxes, the “excess proceeds” from the sale, or that portion not payable for taxes, assessments, costs of sale and notice are payable, upon claim, to persons having an interest in the property at the time of the sale. After all liens have been satisfied, any person who had title of record prior to the sale is entitled to claim the excess proceeds. It is the responsibility of the Board of Supervisors to act on such claims, which must contain any information and proof deemed necessary by the Board of Supervisors to

establish a claimant's right to all or any portion of the excess proceeds.

The above-referenced parcel was sold in May 2005 for $86,094.60. After the necessary deductions for delinquent taxes and penalties, recording fees, and other statutory fees, the surplus amounted to $82,289.74. The present claims to the proceeds have been presented in a timely fashion, and no other claims have been filed within the required one year period.

The San Mateo County Tax Collector has requested a distribution of $200.67 of the excess proceeds and demonstrated this interest in the property by providing a copy of a certificate of delinquent tax and a further statement from the San Mateo County Tax Collector indicating the amount of tax due at the time of the tax sale. It is respectfully recommended that the claim by the San Mateo County Tax Collector to $200.67 of the excess proceeds be granted.

Melvin S. Thompson has requested a distribution of 50% of the excess proceeds and demonstrated his 50% interest in the property by providing a copy of a tax deed for the subject property (which Mr. Thompson acquired at a tax sale together with his wife). It is respectfully recommended that the claim by Melvin S. Thompson to $41,044.54, or 50% of the remaining the excess proceeds, be granted.

FISCAL IMPACT:

None.