SUNDRE — Council carried eight related but individual motions during the Sept. 28 council meeting to set reserve bids and an auction date for properties that have been in tax arrears for at least two years.
The process recurs annually, and Chris Albert, director of corporate services, said it can take upwards of two years for a property that’s fallen into tax arrears to reach this point.
“Just in case council was concerned, this is not the result of COVID, or any sort of deferrals,” said Albert.
“These are ongoing accounts,” he said.
According to background information included in council’s agenda, which is available in full on the municipality’s website, a section of the Municipal Government Act stipulates that, “Each municipality must offer for sale at a public auction any parcel of land shown on its tax arrears list if the tax arrears are not paid.”
Council proceeded to unanimously carry the eight motions pertaining to each property, whose reserve bids ranged from $70,000 to $209,000, and set the sales by public auction for Thursday, Nov. 26 at the municipal office.
“Tax sale is a last resort in a long and regulated process,” Albert told The Albertan in response to follow-up questions.
“If any time during the process — right up to the time of auction — the owner pays the full amount of arrears, the property is removed from the sale process and they retain ownership.”
There are a few properties every year the municipality must begin tax sale proceedings on — typically no more than 10 — and even fewer “occasions require us to actually conduct the auction,” he added.
“The last time all the accounts that started the process didn’t settle the arrears prior to auction was more than 10 years ago, when it was required for one property to go through the auction process.”
Also important to note, he added, is the municipality is not allowed to sell a property for less than fair market value, therefore requiring an up-to-date assessment value to establish minimum reserve bids, he said.
“If a property was auctioned, the town would distribute the proceeds — first to recover its outstanding account balance plus selling costs, then to any outstanding debts or liens on the property and then any funds remaining to the property owner.”
