Judges: Bill McCollum, Attorney General
Filed Date: 9/12/2007
Status: Precedential
Modified Date: 7/5/2016
Dear Ms. Holley and Ms. Lander:
You have asked substantially the following question:
What procedure is available for the disposition of tax certificates held by a private individual on real property to which the county acquired title subsequent to the issuance of the tax certificates?
You state that the county has acquired title to real property subject to tax certificates held by private individuals. There appears to be a discrepancy in the time frame the tax certificates may have been issued.1 However, for purposes of this discussion, it is assumed that the tax certificates have been issued prior to the county obtaining title to the property. It is recognized that any attempt to impose taxes on property once the county has assumed ownership would appear to be ineffective, as county property is immune from taxation.2 Thus, the primary issue addressed is how to redeem tax certificates that were not redeemed or extinguished at the time title was transferred to the county.3
Section
Some protection is afforded governmental units who acquire fee title to property in section
"(1) In the event fee title to property is acquired between January 1 and November 1 of any year by a governmental unit exempt under this chapter by any means except condemnation or is acquired by any means except condemnation for use exclusively for federal, state, county, or municipal purposes, the taxpayer shall be required to place in escrow with the county tax collector an amount equal to the current taxes prorated to the date of transfer of title, based upon the current assessment and millage rates on the land involved. This fund shall be used to pay any ad valorem taxes due, and the remainder of taxes which would otherwise have been due for that current year shall stand canceled.
(2) In the event fee title to property is acquired by a governmental unit exempt under this chapter by any means except condemnation or is acquired by any means except condemnation for use exclusively for federal, state, county, or municipal purposes, the taxpayer is required to pay all taxes due from prior years."6
Section
While there is no specific statutory direction regarding the cancellation or redemption of outstanding tax certificates on property which the county purchases, the Legislature has recognized the separate treatment of tax certificates as they relate to land that comes into possession of the state. Section
"Reinstatement of title in the state or its agency shall, by foreclosure or otherwise, operate to extinguish all liens for all taxes or assessments to which the lands would not have been subject had the title been in the state or its agency; provided, however, that any taxcertificate or tax deed issued upon such lands or other property in thehands of a person, private firm or private corporation, shall representa valid obligation against the said lands, and said certificate may beredeemed and paid for by the said state or its agency as provided by lawin other cases for the purchase or redemption of tax certificates, and in case of deed, by paying to the holder the amount paid by him or her, plus interest at 6 percent per annum since the date of the said deed." (e.s.)
Nothing in the foregoing statutes or the cited opinions would support finding that the transfer of title to the county operates to cancel an outstanding tax certificate held by a private individual. Rather, the lien created by the privately held tax certificate is against the property and in no respect is itself delinquent, remaining with the property despite the transfer of ownership to the county.9
In the event an individual has purchased the tax certificate on a parcel and, therefore, paid the taxes on the property for a specific period, thereby acquiring a lien against the property, the county should consider any outstanding tax certificates when negotiating the purchase of such encumbered property. While the taxpayer owner of property is obligated to pay all outstanding taxes on property that is transferred to a governmental entity, there is no similar obligation for outstanding tax certificates, so it would be advisable for the county to arrange for the payment of outstanding tax certificates from the proceeds of the sale.
The county asserts that the tax certificates at issue here would be void by virtue of the ownership of the property being transferred to the county. Sections
You have suggested that the holding in Kostecos v. Johnson11 precludes the sale of county-owned property to satisfy previously imposed tax liens. In Kostecos, however, the Court was considering the competitive interests of two taxing units and the resulting tax liens, specifically noting that it was not dealing with private rights.12 As noted above, when a tax certificate is issued, the taxes are paid and the individual holding the tax certificate has a claim against the property.
Should the tax certificate be outstanding, section
"The holder of any tax certificate, other than the county, at any time after 2 years have elapsed since April 1 of the year of issuance of the tax certificate and before the expiration of 7 years from the date of issuance, may file the certificate and an application for a tax deed with the tax collector of the county where the lands described in the certificate are located. The application may be made on the entire parcel of property or any part thereof which is capable of being readily separated from the whole. The tax collector shall be allowed a tax deed application fee of $75."
Upon payment of the appropriate fees and outstanding taxes by the applicant,13 the tax collector is required to deliver to the clerk of the circuit court a statement that all outstanding tax certificates have been paid, all appropriate fees have been deposited, and that individuals specified in section
The tax collector's powers, like those of other constitutional county officers, are limited to those powers which have been expressly granted or are clearly necessary to give meaning and effect to those powers which have been expressly granted.15 Further, where the Legislature has directed how a thing is to be done, it operates as a prohibition against its being done in any other manner.16 In this instance, absent legislative direction otherwise, the tax collector must follow the procedures set forth in Chapter
Accordingly, it is my opinion that tax certificates held by a private individual remain valid and enforceable on land that has been obtained by the county subsequent to the issuance of the certificate, and that Chapter
Sincerely,
Bill McCollum Attorney General
BM/tals
Thayer v. State , 335 So. 2d 815 ( 1976 )
Canaveral Port Authority v. Department of Revenue , 690 So. 2d 1226 ( 1996 )
Kostecos v. Johnson , 85 So. 2d 594 ( 1956 )
Dobbs v. Sea Isle Hotel , 56 So. 2d 341 ( 1952 )
Gessner v. Del-Air Corporation , 154 Fla. 829 ( 1944 )
Harvey v. Board of Public Instruction , 101 Fla. 273 ( 1931 )
CD Utility Corporation v. Maxwell , 189 So. 2d 643 ( 1966 )
Markham v. Broward County , 825 So. 2d 472 ( 2002 )