The Seward County treasurer reported to the Board of County Commissioners that a Dec. 12 tax sale listed 28 parcels, removed two, and sold 26 parcels; 62 buyers registered and 43 attended. The treasurer said gross taxes due on the parcels were about $656,000 and proceeds collected totaled $457,000; those proceeds will be held for 14 days pending final reconciliation and then transferred as appropriate.

Treasurer staff requested the creation of a dedicated "tax sale proceeds" fund or account to segregate and track redeemable fees and sale proceeds. Commissioners moved to create such an account and passed the motion; an amendment was added clarifying that funds would not be spent from the account without further action.

During discussion, commissioners sought legal guidance about whether the county could set aside the county's portion of delinquent-tax collections in a special line item or separate fund. County counsel explained that delinquent taxes must be distributed to taxing entities according to levies set at budget time, but the county's portion can be identified and later transferred via internal control or budget transfer; counsel also distinguished delinquent-tax receipts from tax-sale proceeds.

A prolonged exchange followed about the treasurer's mailing of tax statements and the office's provision of a "payment under protest" form and a blue label marked "illegal mill levy." The treasurer said the office provided resources and advised constituents about BOTA procedures, that staff consulted the Board of Tax Appeals (BOTA) and that the forms are allowed; commissioners questioned whether the labeling or distribution could be interpreted as advocacy in ongoing litigation. The treasurer said the materials were provided at constituents' request and that the office is only supplying resources, not legal advice.

The board approved creation of the tax-sale-proceeds fund and instructed staff to reconcile the distribution once all sale proceeds are cleared and provide documentation of transfers.