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Council asks manager to draft rules for late claims to tax-sale surplus
Summary
Council directed the manager to craft a procedure allowing consideration of bona fide heir claims for surplus proceeds from tax sales that come after the two-year statutory claim period, while also recommending safeguards to limit litigation and require claimant-paid application costs.
Council discussed a constituent case in which heirs discovered a surplus from a tax sale after the two-year claim period had expired. Councilman Tigner argued that when heirs can demonstrate entitlement they should have a path to recover remaining funds and asked staff to develop objective criteria for late claims. "My feelings are... if somebody can come up and prove that they would have been entitled to this money, we ought to fess up and just give it back to them," he said.
The city attorney cautioned that staff should develop clear criteria because relaxing the statute of limitations invites many claims and potential litigation. Council gave the manager direction to develop a recommendation for process and criteria, including documentary requirements and cost-recovery provisions (applicants to pay administrative costs where appropriate), and to return with the proposal at a later meeting.
