§ 68-134. Executions and tax sales.

(a)

Definitions. As used in this section, the following terms have the following meanings:

Delinquent taxpayer means the person or persons against whom an execution has been issued or the successor in title to the property for which the execution has been issued.

Due diligence means the performance of a diligent search to ascertain the actual location of the record owner of the property. The following actions shall satisfy the diligent search requirements of this section: sending notice by first-class mail, certified mail or statutory overnight delivery, as required by law. If the notice is returned undelivered the following actions shall satisfy the diligent search requirements of this section: due diligence shall include checking telephone directories for the county wherein the property is located; checking the records of the tax commissioner of the county wherein the property is located; or checking the real estate records of the clerk of the superior court of the county wherein the property is located.

Execution means an execution issued for the collection of any ad valorem taxes, special assessments, fees, penalties, interest or collection costs due to the city.

Transferee means a person to whom an execution is transferred.

Transferor means the official holding the tax executions and authorized to collect or transfer such tax executions.

(b)

Executions for unpaid ad valorem taxes.

(1)

Issuance of executions.

a.

For any and all unpaid ad valorem taxes during any year, executions shall be issued against the property and the owners thereof on or after November 15 of each year for the amount of taxes due, the interest thereon and such fee for the issuance of the execution as provided by law. Such execution shall be issued by the city clerk and bear teste in the name of the mayor and shall be levied by the chief of police or any other police officer of the city. Such execution shall bind all the property, real and personal, of the defendant and the costs thereof shall be the same as on tax collector's executions by the laws of this state.

b.

The execution shall be levied by the chief of police or any other police officer of the city, upon such property as in the discretion of the levying officer may be suitable or available for such purposes, and the same shall be advertised once a week for four weeks next preceding the date of sale in the official organ of Clayton County or in a newspaper having general circulation in the city.

(2)

Time in which to enforce. All city tax executions, before or after legal transfer and record, shall be enforced within seven years from:

a.

The date of issue; or

b.

The time of the last entry upon the tax execution by the officer authorized to execute and return the execution if the execution and entry are properly entered or reentered upon the execution docket or books in which executions issued on judgments and entries on executions issued on judgments are required to be entered or reentered.

(3)

Transfer of executions.

a.

Whenever any person other than the person against whom an execution has been issued pays an execution issued for city taxes or special assessments, the officer whose duty is to enforce the execution may transfer the execution to the party so paying the full value of the execution. No officer whose duty it is to enforce an execution issued for city taxes or special assessments shall be required to make any transfer or transfers of such execution or executions. The transferee shall have the same rights as to enforcing the execution and priority of payment as might have been exercised or claimed by the tax official. The person to whom the execution is transferred shall, within 30 days of the transfer, cause the execution to be entered on the general execution docket of the superior court of the county in which the execution was issued. In default of the required entry or entries, the execution shall lose its lien upon any property which has been transferred in good faith and for a valuable consideration before the entry and without notice of the existence of the execution.

b.

The transfer of executions shall be governed by O.C.G.A. § 48-3-19.

(c)

Tax sales.

(1)

Rules governing tax sales.

a.

The sale of real or personal property under a tax execution shall be made in the same manner as provided for judicial sales; provided, however, that in addition to such other notice as may be required by law, in any sale under a tax execution, the defendant shall be given 20 days' written notice of such sale by registered or certified mail or statutory overnight delivery. The notice required by this section shall be sent to the defendant's last known address as listed in the records of the city. A copy of the notice shall also be sent to the appropriate tax official of the state, county or municipality that also has issued an execution with respect to such property.

b.

Sales of such property shall be conducted on the first Tuesday of the month before the door of the city hall or in the council chambers between the hours of 10:00 a.m. and 11:00 a.m. All property shall be sold at public outcry to the highest bidder for cash.

c.

If, during any sale of property by the city for taxes due and after the property has been offered a reasonable time, no one present at the sale bids an amount for the property being sold which is as much as the total of the tax due plus the officer's cost due on the sale, then any duly appointed officer or agent of the city may purchase the property for the city. If the city purchases property at a sale, the officer conducting the sale shall make to the city a deed to the property sold and shall deliver the deed to the officer designated by the city to receive it. Title acquired by the city at a tax sale by a deed issued pursuant to the sale shall be as perfect, valid and binding, after the period provided for redemption by the owner has elapsed and there is no redemption by the owner, as if purchased by any person other than the city. The officer conducting the sale shall put the city, through any person the city designates, in possession of the property so sold.

d.

Property acquired by the city pursuant to subsection (3) may be divested or alienated by the city only by public sale of the property to the highest bidder. However, when it is clearly shown to the city that returned or unreturned property has been sold and purchased by the governing authority to protect both the taxes of the city and the cost of collecting such taxes and that the governing authority has not parted with title to the property, the city may quitclaim the property by unanimous vote to the owner of the property at the time of purchase by the city or to the owner's administrators, executors, heirs or assigns upon payment of all taxes which are due on the property and all costs due by reason of the sale.

e.

The recitals in a deed under a sale for city taxes shall be prima facie evidence of the facts recited in the deed.

f.

When an execution is placed in the hands of the selling officer of the city with written notice to retain the proceeds arising from the sale of any property of the defendant in fi. fa., the selling officer, after first paying to the city the amount due on the process under which the sale was made, shall retain the balance of the funds in his hands until he is ordered by the court first acquiring jurisdiction under proper proceedings to pay out the funds.

g.

If two or more executions have been levied against a defendant, or if two or more in rem executions have been levied against the same unreturned property, such executions may be aggregated and a single sale may be conducted for the total amount due as in the case of a single execution, and the 12-month period of redemption provided by O.C.G.A. § 48-4-40 shall commence as to all such executions on the date of such sale.

h.

In advertisements for sales under tax executions, the property being sold may alternatively be described by tax parcel identification number and current street address, if any, together with a reference to the recording information for any deed conveying title to such property, without the necessity of using a full and complete description of the property.

i.

One who is obligated to pay a tax on property cannot strengthen his title by purchasing the property at a tax sale. Each such purchase shall be treated as payment for the tax due.

(2)

Excess; how paid; unclaimed funds.

a.

If there are any excess funds after paying taxes, costs and all expenses of a sale, the officer selling the property shall give written notice of such excess funds to the record owner of the property at the time of the tax sale and to the record owner of each security deed affecting the property and to all other parties having any recorded equity interest or claim in such property at the time of the tax sale. Such notice shall be sent by first-class mail within 30 days after the tax sale. The notice shall contain a description of the land sold, the date sold, the name and address of the tax sale purchaser, the total sale price and the amount of excess funds collected and held by the city. The notice shall state that the excess funds are available for distribution to the owner or owners as their interests appear in the order of priority in which their interests exist.

b.

The city may file, when deemed necessary, an interpleader action in superior court for the payment of the amount of such excess funds. Such excess funds shall be distributed by the superior court to the intended parties, including the owner, as their interests appear and in the order of priority in which their interests exist. The cost of litigation such an interpleader action, including reasonable attorney's fees, shall be paid from the excess funds upon order of the court.

c.

After five years have elapsed from the tax sale date, the city shall pay over to the state any excess unclaimed funds and for which no action or proceeding is pending in a claim for payment. Once excess funds are placed in the possession of the state, only a court order from an interpleader action filed in the county where the tax sale occurred, by the claimant for the funds, shall serve as justification for release of the funds.

(d)

Redemption.

(1)

Whenever any real property is sold under or by virtue of an execution issued for the collection of city taxes, the defendant in fi. fa. or any person having any right, title or interest in or lien upon such property may redeem the property from the sale by the payment of the redemption price or the amount required for redemption, as fixed and provided in O.C.G.A. § 48-4-42.

a.

At any time within 12 months from the date of the sale; and

b.

At any time after the sale until the right to redeem is foreclosed by the giving of the notice provided for in O.C.G.A. § 48-4-45.

(2)

When property has been redeemed, the effect of the redemption shall be to put the title conveyed by the tax sale back into the defendant in fi. fa., subject to all liens existing at the time of the tax sale. If the redemption has been made by any creditor of the defendant or by any person having any interest in the property, the amount expended by the creditor or person interested shall constitute a first lien on the property and, if the quitclaim deed provided for in O.C.G.A. § 48-4-44 is recorded as required by law, shall be repaid prior to any other claims upon the property.

(Ord. No. 06-2007A, § 1, 3-26-07; Ord. of 7-14-08(3))

State law reference

Tax executions, O.C.G.A. § 48-3-1 et seq.; notice of levy to owner of security deed or mortgage; lists; fees; O.C.G.A. § 48-3-9; transfer of executions, O.C.G.A. § 48-3-19; O.C.G.A. § 48-3-19(a); statute of limitations for tax executions, O.C.G.A. § 48-3-21; procedures for sales under tax levies and executions, O.C.G.A. § 48-4-1; assessment and disposition of unreturned property, O.C.G.A. § 48-4-2; purchase by one obligated to pay, O.C.G.A. § 48-4-4; payment of excess, O.C.G.A. § 48-4-5; persons entitled to redeem land sold under tax execution; payment; time, O.C.G.A. § 48-4-40; effect of redemption, O.C.G.A. § 48-4-43; sale of property for taxes due municipality; purchase and sale by municipality; recitals in tax deeds prima-facie correct; distribution and retention of proceeds of sale, O.C.G.A. § 48-5-359.