GM’s Corner: Addressing tax delinquent properties
January 3, 2018
Happy New Year!
In order to keep our costs of service as affordable as possible, we do everything we can to make sure we collect all the taxes, fees and assessments due to the Incline Village General Improvement District.
Collection losses end up putting a greater burden on those who pay in a timely manner. One effort to keep our collection losses at a minimum received a bit of attention late last year.
A little over a month ago, we received several inquiries regarding 87 unbuildable tax delinquent properties most of which are in the Bitterbrush subdivision, acquired from Washoe County in October 2012.
Because of the renewed interest in these properties, district general counsel provided a report to the IVGID Board of Trustees on Dec 13, 2017. You can watch the entire update along with lots of additional information at the following web address: https://www.yourtahoeplace.com/news/unbuildable-tax-delinquent-properties
In 2012, IVGID acquired these tax delinquent properties at no cost to the district. They were obtained from Washoe County in accordance with the appropriate provisions of the NRS 361.603. While these parcels were of nominal value because they were simply condominium parcels that were never constructed, 69 of these parcels were carried on our Recreation Roll and impacted IVGID's annual budget. The parcels were obligated to pay fees via the Recreation Roll and none of these parcels paid the fees for many years. Therefore, we had an annual collection loss to our Recreation Roll.
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By acquiring the properties, the District's stated objective was to put itself in a position to have an accurate Recreation Roll. In addition, the acquisition allowed IVGID to accomplish three important objectives, which serve the public's interest:
(1) Recover delinquent fees;
(2) Reinstate the properties back on to the Recreation Roll with property owners who would pay the recreation and beach facility fee and taxes to Washoe County; and
(3) Retain an interest in property within its jurisdiction that currently has no other market value other than the fact that the property retains Recreation and Beach privileges.
Additionally, the properties, because they are unbuildable, would always remain open space whether they remained IVGID property or were sold.
After the properties were acquired, three of the properties were sold consistent with IVGID Board policy 16.1.1, which outlines the cost of restoring the properties in good financial status on the Recreation Roll. The cost of bringing each parcel into compliance was between $14,095 and $17,152. In each case, this amount covered all of IVGID's delinquencies on each parcel along with interest due to the district.
Property sales were done in compliance with all applicable codes, and were reported to the IVGID board via the normal budgeting and reporting process.
Each of the buyers was already a property owner within IVGID, who did not have beach access rights for their parcel. They understood the parcels they were purchasing were unbuildable and would remain that way in perpetuity.
There have been allegations that we did not follow proper procedures for either acquiring or selling these properties. That simply isn't true. All of the facts are outlined in great detail in the web address noted above.
In addition, we've had a moratorium on future sales since the last transaction in 2015. We will be working with the IVGID board to develop a new policy and determine the sales process and procedures for future parcels.
"GM's Corner" is a recurring column from IVGID General Manager Steve Pinkerton, who discusses issues and offers updates regarding various district matters. He may be reached for comment at firstname.lastname@example.org.