- House Committee Substitute -

HCS/SCS/SB 1060 - This act revises the fees to be collected by certain county collectors for all current and delinquent taxes collected as compensation for mailing the statement and receipts. County collectors in counties not having a township organization are also authorized to collect a certain percentage of fees for the collection of taxes on behalf of the county. The act increases the additional fee from five to seven percent for collection of delinquent and back taxes to be collected from the taxpayer in all counties except St. Louis, St. Charles and Jackson counties and the City of St. Louis. A county collector can accept credit cards as a form of payment for taxes, but shall not add a surcharge in excess of the actual fees charged by the credit card bank.

In all counties except St. Louis, St. Charles and Jackson and the City of St. Louis, the county shall establish a "Tax Maintenance Fund". Two percent of the fee collected for delinquent and back taxes shall be deposited in the fund and shall be used by the collector to fund additional costs and expenses incurred by the county collector. The act provides limits on the amount of money that can remain in the fund at the end of each fiscal year. Any money in excess of that limit shall be transferred to the general revenue fund of the county.

A similar "Tax Maintenance Fund" shall be created in third and fourth class counties adopting a township organization that have a county treasurer ex officio collector.

The act modifies provisions related to actions for temporary possession of real property filed by non-profit organizations to rehabilitate the property. Under current law, an organization petitioning for temporary possession of abandoned property must use the property for low- or moderate-income housing. This act deletes that requirement.

Currently, in Jackson County, such organization may seek title to the property after the expiration of the one-year period following entry of the order granting temporary possession. This act provides that the organization may seek title after completing the rehabilitation work. The owner of the property may seek repossession of the property before the rehabilitation is completed. The court shall decide whether to restore possession to the owner and, if so, how much compensation is owed by the owner to the organization for the rehabilitation work.

The act provides that the organization must file quarterly reports on its rehabilitation and use of the property. Under current law, the organization was required to file an annual report.

The owner of the property may petition the court for repossession of the property. The court must determine whether the owner is able to complete rehabilitation of the property if such work has not been completed by the organization. If the court determines that the owner is unable to complete the work, then the court shall not restore possession to the owner. If the owner is able to finish the rehabilitation or it has already been completed, then the court restore possession to the owner and determine appropriate compensation to the organization.

This act authorizes the state to make five conveyances of state property controlled by the department of natural resources, including a transfer of land in Jefferson county.

This act modifies provisions relating to land trusts in Jackson, St. Charles and St. Louis counties. The act changes the date by which actions to set aside a court administrator's or sheriff's deed to within one year of the court administrator's foreclosure sale. The court administrator or sheriff can collect their deed fee at the time of the foreclosure sale.

The act also modifies the membership of land trusts, to include a member appointed by the county executive, if the county has an executive. Land trusts are authorized to sell certain tracts of vacant residential property to the owners of contiguous property. The act provides budget requirements and deadlines for county governing bodies to object to land trust budgets and that a failure to object constitutes approval. The approved budget may only be amended with the consent of the county and city that appointed members.

If there are insufficient funds available to pay the salaries and other expenses of the land trust, additional funds may be requisitioned from the county and city not to exceed 25% of the annual budget year without consent of the county and city.

Performance audits may be conducted by the State Auditor or the Kansas City Auditor. Cost of performance audits must be paid for by the land trust and made available to the public within 30 days of completion.

The act modifies the distribution of assets from the sale of any property in the trust to provide that the trust may be used to pay salaries and other expenses of such trust. Any funds in excess of those necessary to meet the expenses of the trust plus a reasonable sum to carry over into the next fiscal year may be paid to taxing authorities and tax bill owners.

This act contains provisions that are the same or similar to SB 1086 and HB 1634 (2002).

JIM ERTLE