Georgia Department of Revenue Delinquent Tax Georgia Department of Revenue GLOSSARY OF TERMS • alias execution --(O.C.G.A. 48-3-7) • calendar week -- Sunday to Saturday • defaulter -- delinquent taxpayer, or no return filed • execution -- the process and/or form used for levying on and selling enough of a delinquent taxpayer’s property to satisfy unpaid taxes. Georgia Department of Revenue • execution docket — tax commissioner’s execution docket or GED in clerk of superior court’s office • fieri facias (Fi. Fa.) — means that you “cause it to be done.” A judicial writ directing the sheriff to satisfy a judgment from the debtor’s property. Applies to personal and real property. A term used interchangeably with execution. • grantee — the person to whom property is transferred (the buyer). • grantor — the person who transfers the property to another (the seller). • in personam — the legal process directed against a person. • in rem — the legal process directed against property. Georgia Department of Revenue • legal description — a detailed description of real property. • levy — the process whereby a sheriff or other state official empowered by writ or other judicial directive actually seizes, or otherwise brings within his or her control, a delinquent taxpayer’s property to satisfy the judgment. • lien — a claim, encumbrance, or charge on a taxpayer’s property to obtain payment of overdue taxes. • life estate — an estate whose duration is limited to the life of the party holding it, or some other person. A legal arrangement whereby the beneficiary (i.e. the life tenant) is entitled to the income from the property during his or her life. Upon the death of the life tenant, the property goes to the person holding the remaining interest, or to the grantor by reversion. Georgia Department of Revenue • mortgagee — the person who takes, holds, or receives a mortgage. • mortgagor — the debtor; the party who mortgages the property. The party to a mortgage who gives legal title or a lien to the mortgagee in order to secure the mortgage loan. • nulla bona — the name of the return made by the sheriff to a writ of execution, when he or she has not found any goods of the defendant within his or her jurisdiction on which to levy. • pointing out — the act of a delinquent taxpayer in pointing out or selecting property that he or she prefers to be levied on (O.C.G.A. 48-3-4). • quitclaim — the release of a claim. Georgia Department of Revenue • security deed — a deed pledging property to secure a loan. • statute of limitations — statutes of the federal government and various states setting maximum time periods during which certain actions can be brought or rights enforced. • summons of garnishment — an order issued by an appropriate officer to a person owing the delinquent taxpayer money or holding property of the delinquent taxpayer which may be used to pay the taxes and costs due (O.C.G.A. 48-3-12). • tax deed — the deed given upon a sale of real property made for non-payment of taxes. The deed whereby the officer of the law undertakes to convey the title of the property to the purchaser at the tax sale. This is sometimes called a sheriff’s deed. Georgia Department of Revenue • warranty deed — a deed which conveys the title to property whereby the seller guarantees the title to be good and unencumbered except as stated and agrees to defend and protect the purchaser against any loss that may arise in the future from any defect in the title at the time of conveyance. • writ — a written court order or a judicial process, directing that a sheriff or other judicial officer do what is commanded by the writ; or giving authority and commission to have it done. 30 Day Notice before issuing Fi.Fa. 48-3-3 30 Days Issue and Record Fi.Fa. 48-3-3 & 48-5-161 Levy 48-4-3 5 Days Notice to Owner and Tenant within 5 days of Levy 9-13-13 Notice to Holder of Mortgages & Leins 20 days prior to Advertising 48-3-9 20 Days Advertising – 4 consecutive weeks before Sale 9-13-140 & 142 10 day notice 4 Weeks to Defendant 48-4-1 Notice to IRS 25 days before Sale (if Federal Tax Lien) IRS Publication 786 Sale Day First Tuesday of Month 25 Days Georgia Department of Revenue Summary of Flowchart • Tax Due Date 12/20/08 • FIFA Letter mailed on 12/21/08 • Record FIFA on 1/21/09 • Levy on Property 1/22/09 • Notice to Owner or Tennant by 1/27/09 • Notice to Mortage/Lein Holder- 1/27/09 20 days Prior to Advertising Georgia Department of Revenue • Advertise Property 4 Consecutive Weeks Start week of 2/16/09-3/9/09 • Last Notice to Defendant-10 day before Sale- Mailed before 3/29/09 • IRS Notice if Necessary-25 days before sale-Mail by 3/14/09 • Sale Property on 4/7/09-First Tuesday of Month Georgia Department of Revenue Executions 48-3-3 Georgia Department of Revenue 48-3-3. Executions by tax collectors and commissioners (1) "New owner" means the most recent subsequent owner who has purchased such property during the year after January 1, but on or after the due date of that tax bill year and whose deed has been duly recorded in the records of the clerk of the superior court for that county. Georgia Department of Revenue (2) "Owner of record" means the owner whose name appears in the deed record as the owner as of January 1 of that tax bill year. Georgia Department of Revenue (e) (1) Whenever technologically feasible, the tax collector or tax commissioner, at the time tax bills or any subsequent delinquent notices are mailed, shall also mail such bills or notices to any new owner that at that time appear in the records of the county board of assessors. The bills or notices shall be mailed to the address of record as found in the county board of assessors' records. Georgia Department of Revenue (2) A new purchaser of property shall not be required to pay the interest specified in Code Section 48-2-40, or the penalty specified in Code Section 48-2-44, until 60 days after the tax collector or tax commissioner has forwarded a tax bill to the new purchaser in accordance with paragraph (1) of this subsection. This paragraph shall apply only to the tax bill applicable to the year in which the property was purchased. Georgia Department of Revenue (d) No execution shall be issued against any person who is not the record owner of the property on the day that the taxes become delinquent if, within 90 days from the due date, that person has provided satisfactory proof to the tax collector or tax commissioner that the property has been transferred by recorded deed and the liability for the payment of ad valorem taxes has been assigned to the vested transferee by written agreement or contract. In such cases, the execution shall be issued against the person who is the new record owner of the property on the date that taxes became delinquent only after such new owner has been sent a notice of the delinquent tax bill and that the tax collector or tax commissioner intends to issue a tax execution in the new owner's name against such delinquent property if the bill and all applicable interest and other charges are not paid within 30 days of the date of the notice. Georgia Department of Revenue Who is Execution Issued against? • Old Owner • New Owner – No proof of new – Old owner brings ownership proof – No new PT-61 – New PT-61 – Longer than 90 days – When proper notice after due date given Georgia Department of Revenue What to do-- • notice mailed first class – address of record on PT-61 • execution already issued – shall be affirmatively cleared and vacated Georgia Department of Revenue Prohibited • 48-4-23 • Individuals prohibited from tax sale purchase Georgia Department of Revenue Prohibited individuals • A tax commissioner • Any person employed in the office of the tax commissioner • Any person working on behalf of the tax commissioner Georgia Department of Revenue Penalty for Violation • shall be guilty of a misdemeanor • imprisonment for a period of not more than one year • And/Or a fine not to exceed $1,000.00 • Must Void Sale Georgia Department of Revenue Sheriff’s Deed • Completed and Signed in Tax Office • Recorded in Clerk’s Office • Given to the Purchaser after payment Georgia Department of Revenue Excess Funds • 48-4-5 Code Section • Send Notice to Record Owner/Security Deed Holder/Parties of Recorded Interest within 30 days of Sale • Notice Should Contain: 1. Description of Land Sold 2. Date Property Sold 3. Name & Address of sale purchaser 4. Total Sale price 5. Amount of excess funds held by TC. Georgia Department of Revenue Excess Funds-Cont’d • Interpleader may Be filed –Superior Court can decide who receives Excess • If Excess Not Claimed -After 5 years amount is sent to GA DOR - Unclaimed Property Section • Remittance Form & Instructions on GA DOR Website-www.etax.dor.ga.gov Georgia Department of Revenue Redemption • 48-4-42 • Fee = 20% for the first year • 10% for every year thereafter • Foreclosure—consult an attorney • Court Case—requires recording Georgia Department of Revenue Judicial Sales • Conducted by Superior Court Judge • Consult County Attorney Georgia Department of Revenue Mobile Homes • Personal Property • No 30 day letter required • No redemption period • Same procedures apply Legal Costs and Fees Corresponding O.C.G.A. State Statute(s) Principal Tax $1.00 Minimum or One-Percent Per Month Interest 48-2-40; 48-3-8; 48-5-24 Sub Total, Tax and Interest Five-Percent Late Payment Penalty - Applicable to Counties with Installment Payments 48-5-24 10-Percent Penalty after 90 Days Except on Homestead Bills $500 or Less 48-2-44 Fi. Fa.’s 15-16-21 Sub Total Due Levy Administrative Fee (Five-percent of tax with a $50 minimum / $250 maximum) 48-5-161 Ex-Officio Sheriff Commissions 15-16-21 Fieri Facias Issuance 48-5-163 Fieri Facias Recording 15-6-77.3 Fieri Facias Collection (0-$100 / $100 +) 15-16-21 (B) (20); 15-16-21 (B) (21) Fieri Facias Cancellation 15-6-77 (C) 2 Dishonored Check or Instrument (Penalty) 48-5-146 Dishonored Check or Instrument (Service Charge) 16-9-20 Each Levy or Fieri Facias 15-16-21 Settling 15-16-21 Advertising 9-13-143 Tax Deed 15-16-21 Bill of Sale (Personal Property) 15-16-21 Deed Recording 15-6-77.3C (1) Retaining Fee (All Recording) 7-14-51 (B) Total Legal Costs and Fees Total Due or Beginning Bid Bid Overage 48-4-5 Previous Fee New Fee Code Section Office/Officer Purpose of Fee Amount Amount 15-6-77(g)(2) Superior Court Uncertified copies of documents, if no assistance required $0.25 $0.50 15-6-77(g)(9) Superior Court Certificate of appointment and reappointment to notaries public $13.00 $20.00 15-6-77(g)(10) Superior Court Registering and filing trade names $8.00 $15.00 15-6-77(g)(11) Superior Court Issuing subpoena, signed and sealed $1.00 $5.00 Preparing and indexing record for the Supreme Court/Court of 15-6-77(g)(12) Superior Court $1.50 $10.00 Appeals, per page 15-6-77(g)(12) Superior Court Transcript of evidence and proceedings, recopying not required $5.00 $35.00 Copy of record of appeal in criminal cases w/ capital felony; per 15-6-77(h)(6) Superior Court $1.50 $5.00 page 15-9-60(e)(1) Probate Court Initial estate proceeding $90.00 $130.00 15-9-60(f)(1) Probate Court Minor Guardianship proceeding $60.00 $75.00 15-9-60(f)(2)(A) Probate Court Petition of guardian for leave to sell (minor) $50.00 $70.00 15-9-60(f)(2)(B) Probate Court Petition of compromise doubtful claim of minor $50.00 $70.00 15-9-60(f)(2)(C) Probate Court Petition for leave to encroach on corpus (minor) $25.00 $30.00 15-9-60(f)(2)(E) Probate Court Inventory or annual, intermediate, or final return (minor) $25.00 $30.00 15-9-60(f)(2)(F) Probate Court Petition or motion for attorneys' fees (minor) $50.00 $70.00 15-9-60(f)(2)(G) Probate Court Petition to terminate temporary guardianship of minor $25.00 $30.00 15-9-60(f)(2)(H) Probate Court Other unspecified guardianship matter (minor) $25.00 $30.00 15-9-60(g)(2)(A) Probate Court Petition of guardian for leave to sell (adult) $50.00 $70.00 15-9-60(g)(2)(B) Probate Court Petition to compromise doubtful claim (adult) $50.00 $70.00 15-9-60(g)(2)(C) Probate Court Petition for leave to encroach on corpus (adult) $25.00 $30.00 15-9-60(g)(2)(E) Probate Court Inventory or annual, intermediate, or final return (adult) $25.00 $30.00 15-9-60(g)(2)(F) Probate Court Petition or motion for attorneys' fees (adult) $50.00 $70.00 15-9-60(g)(2)(G) Probate Court Petition to terminate/modify guardianship of incapacitated adult $50.00 $70.00 15-9-60(g)(2)(H) Probate Court Application of guardian for letters of dismission (adult) $60.00 $75.00 15-9-60(g)(2)(I) Probate Court Other unspecified guardianship matter (adult) $50.00 $70.00 All services rendered, in matters involving sterilization, 15-9-60(h)(1) Probate Court $75.00 $130.00 involuntary treatment, habilitation, or temporary placement Previous Fee New Fee Code Section Office/Officer Purpose of Fee Amount Amount 15-9-60(i)(1) Probate Court Hearings in contested matters (per 1/2 day) $25.00 $30.00 15-9-60(k)(4) Probate Court Petition to change birth certificate $60.00 $75.00 15-9-60(k)(5) Probate Court Unspecified services through entry of final order $50.00 $70.00 15-9-60(k)(6) Probate Court Issuance of order not otherwise specified $25.00 $30.00 15-9-60(k)(7) Probate Court Motions, amendments, or other pleadings $10.00 $15.00 Processing appeals to superior court (does not include recording 15-9-60(k)(8) Probate Court $25.00 $30.00 fees) 15-9-60(k)(11) Probate Court Permit to discharge fireworks $25.00 $30.00 15-9-60(k)(12) Probate Court Firearms license $15.00 $20.00 15-9-60(k)(13) Probate Court Replacement firearms license $5.00 $6.00 Marriage license, if applicants have not completed premarital 15-9-60(k)(14.1) Probate Court $35.00 $40.00 education 15-9-60(k)(15) Probate Court Safekeeping of a will $10.00 $15.00 15-9-60(k)(17) Probate Court Peddler's license $10.00 $15.00 15-9-60(k)(21) Probate Court Recording of marks and brands $10.00 $15.00 15-9-60(k)(22) Probate Court Exemplification $10.00 $15.00 15-9-60(k)(23) Probate Court Certification under seal of copies (also add copy costs) $5.00 $10.00 Certified copies of letters of personal representative, temporary 15-9-60(k)(24) Probate Court $5.00 $10.00 administrator, or guardian 15-9-60(k)(25) Probate Court Issuing a subpoena, each $5.00 $10.00 Oath or bond of any official/employee within county, including 15-9-60(k)(26) Probate Court $5.00 $10.00 municipal employees 15-9-60(k)(28) Probate Court Examination of records or files $5.00 $10.00 15-9-60(k)(30) Probate Court Copies, per page $0.25 $1.00 Not to exceed 15-10-80(a) Magistrate Court Civil Action Filing Fee Not to exceed $20 $22 Previous Fee New Fee Code Section Office/Officer Purpose of Fee Amount Amount 15-10-80(c ) Magistrate Court Writ of fieri facias $2.00 $4.00 15-10-81 Magistrate Court Conviction - Violation of Ordinance Not to exceed $30 Not exceed $70 15-10-82 Magistrate Court Hearing on search/arrest warrant Not to exceed $10 Not exceed $20 15-16-21(b)(1) Sheriff Serving copy of process and returning original $25.00 $50.00 15-16-21(b)(2) Sheriff Action from another county $25.00 $50.00 15-16-21(b)(3), (c)(7) Sheriff Summoning each witness $6.00 $10.00 15-16-21(b)(4) Sheriff Levy or Writ of Fieri Facias $25.00 $50.00 15-16-21(b)(5) Sheriff Search and return of nulla bona $13.00 $20.00 15-16-21(b)(6) Sheriff Summons of garnishment or rule against garnishee $25.00 $50.00 15-16-21(b)(8) Sheriff Titles to land $25.00 $50.00 15-16-21(b)(8) Sheriff Titles to land if presented by purchaser $13.00 $20.00 Executing bill of sale to personal property, when demanded by 15-16-21(b)(9) Sheriff $13.00 $20.00 purchaser 15-16-21(b)(14) Sheriff Settling each execution in his hands, settled w/o sale $13.00 $20.00 15-16-21(b)(15) Sheriff Levying an attachment $25.00 $50.00 15-16-21(b)(20) Sheriff Collecting tax fi. fas., $100 or less $5.00 $10.00 15-16-21(b)(21) Sheriff Collecting tax fi. fas., over $100 each $10.00 $20.00 15-16-21(c)(8) Sheriff Taking bonds in criminal cases $13.00 $20.00 15-21A-6.1 Superior Court Judicial Operations Fund Fee (new) - $125.00 (State) 15-21A-6.2 State Court Judicial Operations Fund Fee (new) - $75.00 (State) 15-21A-6.2 State Court Judicial Operations Fund Fee (new) - $50.00 (Local) Georgia Department of Revenue Penalties & Interest Interest - 1% per month from due date until date paid - any period less than a month is considered one month - minimum interest is $1.00 - interest collected from taxpayers distributed to levying authorities ratably in manner taxes are required to be paid Georgia Department of Revenue Late Payment Penalties Penalties are part of the tax and to be collected as such -Generally 10% of delinquent tax -Per 48-5-242 the county governing authority may delegate authority to waive delinquent penalties to Tax Commissioner Georgia Department of Revenue Late Payment Penalties (cont.) • Bad Check = 1% of amount on check or money order • Tax Commissioner needs to have approval of county governing authority to receive checks to avoid personal liability • Follow procedures in 48-5-146 Georgia Department of Revenue Late Return of Property • Day after Return Due = 10% of tax due or $1 • Return due date is April 1st (March 1St in some counties) Georgia Department of Revenue Breach of Covenants Preferential - Taxes saved that year x factor below: The penalty shall be computed for the year the breach occurs by multiplying the taxes saved times: 5 - If breach occurs in First or Second Year 4 - If breach occurs Third or Fourth Year 3 - If breach occurs in Fifth or Sixth Year 2 - If breach occurs in Seventh, Eighth, Ninth, or Tenth Year Such penalties shall be prorated and distributed to each tax jurisdiction. Georgia Department of Revenue CUVA Conservation and Residential Transitional - Taxes saved each year x 2 The penalty shall be computed on the entire tract by multiplying the taxes saved each year by 2 for each year completed or partially completed. Conservation covenant in renewal breached after sixth year – Taxes saved Conservation covenant breached owner has reached age 65 or entered into covenant after 67 and owned/inherited 15 years. -Taxes saved in year of breach Conservation covenant breached because of medically demonstrable illness or disability. –Taxes saved Conservation covenant breached because of foreclosure-Taxes saved Such penalties shall be prorated and distributed to each tax jurisdiction. Georgia Department of Revenue Criminal Penalties- Mobile Homes • Failure to Purchase and Display a Decal = Minimum $25, Maximum $200 • Failure to Display a Decal = $25 • Move or Transport without a Decal = Misdemeanor Georgia Department of Revenue Criminal Penalties • Obstructing Levying Officers = Misdemeanor • Violation of Confidentiality = Civil Penalty (maximum $1,000) • Failure to Furnish Records not Confidential = Misdemeanor • Failure to Keep Execution Docket = Commission Forfeiture plus 20% • Failure to Settle Accounts = Principal Amount plus 20% Interest Georgia Department of Revenue Levy/Execution Fees • Levy Administration Fee = Lesser of 5% of Tax or $250 (minimum $50) • Fee for Issuing Tax Executions = $ .50 • Issue Day of Execution = 1% per Month • Transferred Executions - Annual Interest = No More than 12% • Transferred Executions - Date of Transfer = 1% per Month Georgia Department of Revenue Court Cases • DRST Holdings v AGIO Corp 1/8/08 • Powers v CDSaxton 4/28/09 • Huff v. The Harpagon Company, LLC 3/22/10 Georgia Department of Revenue DRST Holdings • May 2004 Tax Sale—purchased by AGIO • Excess funds on sale • December 2004 Tax Sale of Same Property • Competing Tax Leins?? Georgia Department of Revenue FDIC • Federal Deposit Insurance Corporation • Insures deposits up to $250,000 • Independent Agency of the Federal Govt – www.fdic.gov Georgia Department of Revenue Failed Banks • List updated daily and weekly • Get on e-mail list • FDIC Receiver appointed • Bank Takeover – Notice sent to last “recorded” – Assets vs Liabilities Georgia Department of Revenue Collection Procedures • Notify Receiver at FDIC—ASAP • Payment forthcoming – May be able to save on advertising fees • Redemption Fee ???
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