2019 Kentucky Revised Statutes Chapter 134 - Payment, collection, and refund of taxes 134.490 Actions by owner of certificate of delinquency to collect or foreclose certificate -- Notice by third-party purchaser to taxpayer -- Installment payment plans.
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134.490 Actions by owner of certificate of delinquency to collect or foreclose
certificate -- Notice by third-party purchaser to taxpayer -- Installment
payment plans.
(1)
(2)
(3)
The following notices shall be sent by a third-party purchaser to the delinquent
taxpayer by first-class mail with proof of mailing, and shall include the information
required by subsection (3)(d) of this section:
(a) Within fifty (50) days after the delivery of a certificate of delinquency by the
clerk to a third-party purchaser, the third-party purchaser shall send a notice to
the delinquent taxpayer informing the delinquent taxpayer that the certificate
of delinquency has been purchased by the third-party purchaser; and
(b) At least annually thereafter, until the notice required by subsection (2) of this
section is sent, the third-party purchaser shall send a notice to the delinquent
taxpayer.
Anytime after the expiration of the one (1) year tolling period established by KRS
134.546, the third-party purchaser may institute an action to collect the amount due
on a certificate of delinquency. At least forty-five (45) days before instituting a legal
action, the third-party purchaser shall send to the taxpayer by first-class mail with
proof of mailing, a notice informing the taxpayer that enforcement action will be
taken. This notice shall also include the information required by subsection (3) of
this section, and shall be in addition to any notice sent under subsection (1) of this
section.
(a) 1.
For certificates of delinquency for all property except property described
in paragraph (b) of this subsection, third-party purchasers or their
designees shall obtain from the office of the property valuation
administrator of the county in which the real property is located the most
recent address for the property owner.
2.
To obtain information from the office of the property valuation
administrator, the third-party purchaser shall, at the option of the
property valuation administrator, either:
a.
Obtain information from an up-to-date public access list or Web
site offered by the property valuation administrator; or
b.
Submit a list of addresses, map identification numbers, or parcel
numbers for which updated information is requested to the
property valuation administrator, who shall update his or her
records with regard to the properties for which information is
requested and provide the updated information to the third-party
purchaser within ten (10) days.
3.
For this service, the property valuation administrator may charge a fee
not to exceed two dollars ($2) for each address provided or obtained.
4.
Except as provided in paragraph (b) of this subsection, the third-party
purchaser shall send the notices required by subsections (1) and (2) of
this section to the address provided by the property valuation
administrator. Unless the provisions of subparagraph 7. of this paragraph
5.
6.
7.
8.
(b)
1.
2.
3.
apply, the third-party purchaser shall not be required to send a notice to
any party other than the owner of record as provided by the property
valuation administrator at the time the notice is sent.
If, due to insufficient staffing, the property valuation administrator is
unable to provide the requested information to the third-party purchaser
within ten (10) days of submission, the property valuation administrator
shall immediately notify the third-party purchaser, and the third-party
purchaser may send the notices required by subsections (1) and (2) of
this section to the address reflected in the public records of the property
valuation administrator.
Any notices sent pursuant to information obtained under this paragraph
that are returned as undeliverable shall be re-sent by first-class mail with
proof of mailing addressed to the "Occupant" at the address of the
property that is the subject of the certificate of delinquency. These
notices shall be sent within twenty (20) days of receipt of the returned
notice.
If a third-party purchaser becomes aware of a more recent or more
accurate address for a delinquent taxpayer that is different from the
address reflected in the records of the property valuation administrator,
the third-party purchaser shall send notices to the updated address in the
manner required by this subsection, and shall notify the property
valuation administrator of the updated address.
If a third-party purchaser receives an address from the property valuation
administrator during an address check after a first notice is sent and
returned as undeliverable, and the address is the same as was originally
provided, the third-party purchaser shall send the notice addressed to
"Occupant" at the address of the property that is the subject of the
certificate of delinquency.
For certificates of delinquency relating to unmined coal, oil or gas
reserves, or any other mineral or energy resources assessed separately
from the surface real property pursuant to KRS 132.820, third-party
purchasers or their designees shall obtain from the department the most
recent address for the property owner.
To obtain information about a particular property, the third-party
purchaser shall submit to the department a list of addresses, map
identification numbers, parcel numbers, and any other information the
department may require. The department shall:
a.
Update its records with regard to the properties for which
information is requested; and
b.
Provide the updated information to the third-party purchaser within
ten (10) business days.
For this service, the department may charge a fee not to exceed two
dollars ($2) for each address provided.
4.
(c)
(d)
The third-party purchaser shall send the notices required by subsections
(1) and (2) of this section relating to unmined coal, oil or gas reserves, or
any other mineral or energy resources assessed separately from the
surface real property pursuant to KRS 132.820 to the address provided
by the department. Unless the provisions of subparagraph 5.f. of this
paragraph apply, the third-party purchaser shall not be required to send a
notice to any party other than the owner of record as provided by the
department at the time the notice is sent.
5.
a.
Any notice sent pursuant to subsections (1) and (2) of this section
based on information obtained pursuant to this paragraph and
returned as undeliverable shall be submitted to the department
within ten (10) days of receipt of the returned notice.
b.
The department shall attempt to obtain an updated address for the
owner of the property subject to the certificate of delinquency from
the individual or entity filing the property tax return for the
property.
c.
The individual or entity filing the property tax return shall provide
an address of the property owner upon request of the department.
d.
The department shall provide any updated address information to
the third-party purchaser.
e.
If updated information is provided, the notices shall be re-sent by
first-class mail with proof of mailing to the updated address of the
owner within ten (10) days of the receipt of the updated
information from the department.
f.
If a third-party purchaser becomes aware of a more recent or more
accurate address for a delinquent taxpayer that is different from the
address reflected in the records of the department, the third-party
purchaser shall send notices to the updated address in the manner
required by this subsection, and shall notify the department of the
updated address.
The third-party purchaser shall maintain complete and accurate records of all
notices sent pursuant to this section.
The notices required by this section shall include the following information:
1.
A statement that the certificate of delinquency is a lien of record against
the property for which delinquent taxes are owed;
2.
A statement that the certificate bears interest at the rate provided in KRS
134.125;
3.
A statement that if the certificate is not paid, it will be subject to
collection as provided by law, and that collection actions may include
foreclosure. The notice required by subsection (2) of this section shall
also include a statement of the intent to institute legal action to collect
the amount due;
4.
A complete listing of the amount due, as of the date of the notice,
(4)
(5)
broken down as follows:
a.
The purchase price of the certificate of delinquency;
b.
Interest accrued subsequent to the purchase of the certificate of
delinquency; and
c.
Fees imposed by the third-party purchaser;
5.
If the third-party purchaser is required to register with the department as
provided in KRS 134.128(3), for certificates of delinquency purchased
after June 1, 2012, a statement informing the taxpayer that upon written
request and the payment of a processing fee, the third-party purchaser
will offer a payment plan; and
6.
Information, in a format and with content as determined by the
department, detailing the provisions of the law relating to third-party
purchaser fees and charges.
(e) In addition, the notice shall provide the following information to the taxpayer:
1.
The legal name of the third-party purchaser;
2.
The third-party purchaser's physical address;
3.
The third-party purchaser's mailing address for payments, if different
from the physical address; and
4.
The third-party purchaser's telephone number.
If the information required by this paragraph changes, the third-party
purchaser shall, within thirty (30) days of the change becoming effective, send
a notice to each taxpayer by first-class mail with proof of mailing with the
corrected information. The third-party purchaser shall also update contact
information included in the records of the county clerk within ten (10) days of
the change becoming effective. Failure to send the original notice or any
correction notices shall result in the suspension of the accrual of all interest
and any fees incurred by the third-party purchaser after that date until proper
notice is given as required by this subsection.
If a person entitled to pay a certificate of delinquency to a third-party purchaser
makes payment on the certificate of delinquency to the county clerk under the
conditions described in KRS 134.127(3)(d), the payment shall constitute payment in
full, and no other amounts may be collected by the third-party purchaser from the
person.
(a) For certificates of delinquency purchased after June 1, 2012, at the written
request of a delinquent taxpayer, a third-party purchaser required to register
with the department as provided in KRS 134.128(3) shall provide a monthly
installment payment plan to a taxpayer.
(b) The taxpayer and third-party purchaser shall sign an agreement detailing the
terms of the installment payment plan.
(c) The third-party purchaser may impose a processing fee, not to exceed eight
dollars ($8) per month to offset the administrative cost of providing the
payment plan. No other fees, charges, interest, or other amounts not expressly
(6)
authorized by this chapter shall be charged, assessed, or collected by the thirdparty purchaser.
(d) The existence of an agreement to provide a payment plan shall not impact the
right of the third-party purchaser to pursue legal action if the delinquent
taxpayer fails to follow the terms of the installment payment agreement.
(e) Upon default of a delinquent taxpayer:
1.
The third-party purchaser shall retain all amounts paid, which shall be
applied to the outstanding balance due; and
2.
The third-party purchaser shall not be required to offer the delinquent
taxpayer another opportunity for an installment payment plan.
(f) If a third-party purchaser who was required to offer payment plans pursuant to
paragraph (a) of this subsection, subsequently does not purchase a sufficient
number of certificates of delinquency to require registration with the
department, the third-party purchaser shall continue to offer payment plans
under the conditions established by this subsection for all delinquent taxpayers
whose certificates of delinquency were purchased during a period in which the
third-party purchaser was required to register with the department.
(g) A third-party purchaser who is not required to register with the department as
provided in KRS 134.128(3), or who holds certificates of delinquency
purchased prior to June 1, 2012, may voluntarily offer installment payment
plans to delinquent taxpayers in accordance with the provisions of this
subsection.
(h) The department may establish additional terms and conditions for installment
payment plans in an administrative regulation.
Any person to whom a third-party purchaser transfers or assigns a certificate of
delinquency shall be considered a third-party purchaser under this chapter.
Effective: April 23, 2012
History: Amended 2012 Ky. Acts ch. 161, sec. 6, effective April 23, 2012. -- Amended
2010 Ky. Acts ch. 75, sec. 8, effective April 7, 2010. -- Amended 2009 Ky. Acts ch.
10, sec. 15, effective January 1, 2010. -- Amended 2007 Ky. Acts ch. 14, sec. 5,
effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 209, sec. 15, effective March
30, 1998. -- Amended 1994 Ky. Acts ch. 65, sec. 5, effective July 15, 1994. -Amended 1990 Ky. Acts ch. 27, sec. 11, effective July 13, 1990. -- Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4149b-7.
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