Kentucky Statutes 134.546 – Cause of action on certificates of delinquency — Sale and deed on foreclosure — No redemption — Additional rights if owner is a taxing unit
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(1) Any action to collect any amount due on a certificate of delinquency or personal property certificate of delinquency may be brought at any time after the passage of one (1) year from the date the taxes became delinquent, and shall be brought within eleven (11) years of the date when the taxes became delinquent.
(2) A third-party purchaser may:
(a) Institute an action against the delinquent taxpayer to collect the amount of the certificate of delinquency and any other certificates of delinquency subsequently issued to the same third-party purchaser against the same delinquent, and shall have all the remedies available for the enforcement of a debt;
(b) Institute an action to enforce the lien provided in KRS § 134.420, represented by the certificate of delinquency and those certificates subsequently held by the same third-party purchaser against the same delinquent or property; or
(c) Institute one (1) action including both types of actions mentioned in paragraphs (a) and (b) of this subsection, and the joinder of actions shall not be defeated if the delinquent taxpayer has disposed of any property covered by the lien, but the purchaser of the property shall be made a defendant if the judgment is to affect his or her interest in the property, and as between them the delinquent taxpayer shall be responsible.
(3) If the state, county, or a taxing district is the owner of a certificate of delinquency or personal property certificate of delinquency, it shall have, in addition to the remedies provided in subsection (1) of this section, the right to distrain and sell any property owned by the delinquent taxpayer, including that on which the lien provided in KRS § 134.420 has attached. Any property sold under distraint proceedings shall be sold in the same manner as provided in KRS § 131.500, except that the exercise of the power shall be vested in the county attorney.
(4) Any property while owned by a delinquent taxpayer shall be subject to foreclosure or execution in satisfaction of a judgment pursuant to an action in rem or an action in personam, or both, to enforce the obligation.
(5) If property is sold pursuant to a judgment of foreclosure, it shall be appraised pursuant to the provisions of KRS § 426.520, and there shall be a right of redemption as provided in KRS § 426.530. If there is no purchaser at a foreclosure sale, the master commissioner shall make a deed to the person or persons shown by record to be the owner of the certificate or certificates of delinquency, and that person or persons shall have a pro rata interest in accordance with the amount of their respective certificates.
(6) The department may provide to a third-party purchaser factual information related to the owner or lessee of the coal, oil, gas reserves, or any other mineral resources assessed under KRS § 132.820(1) pursuant to an order entered in a foreclosure action involving a certificate of delinquency for unmined coal, oil, gas, or any other mineral resources. The department may promulgate an administrative regulation
establishing a fee schedule for the provision of the information described in this subsection. Any fee imposed shall not exceed the greater of the actual cost of providing the information or ten dollars ($10).
Effective: April 7, 2010
History: Amended 2010 Ky. Acts ch. 75, sec. 10, effective April 7, 2010. — Created
2009 Ky. Acts ch. 10, sec. 16, effective January 1, 2010.
(2) A third-party purchaser may:
Terms Used In Kentucky Statutes 134.546
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Certificate of delinquency: means a tax claim on real property for taxes that:
(a) Remains unpaid on April 15 under the regular collection schedule, or three (3) full months and fifteen (15) days from the date the taxes were due under an alternative collection schedule as determined under KRS §. See Kentucky Statutes 134.010 - Commissioner: means the commissioner of the department. See Kentucky Statutes 134.010
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Department: means the Department of Revenue. See Kentucky Statutes 134.010
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Taxpayer: means the owner of property on the assessment date, or any person otherwise made liable by law for ad valorem taxes attributable to that assessment date. See Kentucky Statutes 134.010
- Third-party purchaser: means a purchaser of a certificate of delinquency. See Kentucky Statutes 134.010
- Year: means calendar year. See Kentucky Statutes 446.010
(a) Institute an action against the delinquent taxpayer to collect the amount of the certificate of delinquency and any other certificates of delinquency subsequently issued to the same third-party purchaser against the same delinquent, and shall have all the remedies available for the enforcement of a debt;
(b) Institute an action to enforce the lien provided in KRS § 134.420, represented by the certificate of delinquency and those certificates subsequently held by the same third-party purchaser against the same delinquent or property; or
(c) Institute one (1) action including both types of actions mentioned in paragraphs (a) and (b) of this subsection, and the joinder of actions shall not be defeated if the delinquent taxpayer has disposed of any property covered by the lien, but the purchaser of the property shall be made a defendant if the judgment is to affect his or her interest in the property, and as between them the delinquent taxpayer shall be responsible.
(3) If the state, county, or a taxing district is the owner of a certificate of delinquency or personal property certificate of delinquency, it shall have, in addition to the remedies provided in subsection (1) of this section, the right to distrain and sell any property owned by the delinquent taxpayer, including that on which the lien provided in KRS § 134.420 has attached. Any property sold under distraint proceedings shall be sold in the same manner as provided in KRS § 131.500, except that the exercise of the power shall be vested in the county attorney.
(4) Any property while owned by a delinquent taxpayer shall be subject to foreclosure or execution in satisfaction of a judgment pursuant to an action in rem or an action in personam, or both, to enforce the obligation.
(5) If property is sold pursuant to a judgment of foreclosure, it shall be appraised pursuant to the provisions of KRS § 426.520, and there shall be a right of redemption as provided in KRS § 426.530. If there is no purchaser at a foreclosure sale, the master commissioner shall make a deed to the person or persons shown by record to be the owner of the certificate or certificates of delinquency, and that person or persons shall have a pro rata interest in accordance with the amount of their respective certificates.
(6) The department may provide to a third-party purchaser factual information related to the owner or lessee of the coal, oil, gas reserves, or any other mineral resources assessed under KRS § 132.820(1) pursuant to an order entered in a foreclosure action involving a certificate of delinquency for unmined coal, oil, gas, or any other mineral resources. The department may promulgate an administrative regulation
establishing a fee schedule for the provision of the information described in this subsection. Any fee imposed shall not exceed the greater of the actual cost of providing the information or ten dollars ($10).
Effective: April 7, 2010
History: Amended 2010 Ky. Acts ch. 75, sec. 10, effective April 7, 2010. — Created
2009 Ky. Acts ch. 10, sec. 16, effective January 1, 2010.