Chapter 3.12 PROPERTY TAX--DELINQUENT TAXES, LIENS AND FORECLOSURES

B. If a tax on property or on a leasehold interest in tax exempt property is not paid when due, the borough will enforce the tax by a personal action against the delinquent taxpayer brought in the district or superior court, in addition to other remedies available to the borough to enforce the lien. (Ord. 30 §1, 1972).

3.12.020 Foreclosure list--Presentation--Publication--Mailing.

The borough shall:

A. Annually present a petition for judgment and a certified copy of the foreclosure list for the previous year’s delinquent taxes in the superior court for judgment.

B. Publish the foreclosure list for four consecutive weeks in a newspaper of general circulation distributed within the borough or post the list at three public places for at least thirty days.

C. Within ten days after the first publication or posting, mail to the last known owner of each property as his name and address appear on the list a notice advising of the foreclosure proceeding in which a petition for judgment of foreclosure has been filed and describing the property and the amount due as stated on the list. (Ord. 2023-08, 2023; Ord. 30 §2(a), 1972).

3.12.030 Foreclosure list--Form and contents.

The list shall be arranged in alphabetical order, according to last name, and shall include:

A. The last known owner;

B. The property description, as stated on the assessment roll;

C. Years and amounts of delinquency;

D. Penalty and interest due;

E. A statement that the list is available for public inspection at the clerk’s office;

F. A statement that the list has been presented to the superior court with a petition for judgment and decree. (Ord. 30 §2(b), 1972).

3.12.040 Foreclosure list--Deemed complaint and service of summons when.

Completion of the requirements of Section 3.12.020 constitutes, and has the same force and effect as the filing of an individual and separate complaint and service of summons to foreclose a lien against each property described on the foreclosure list. (Ord. 30 §2(c), 1972).

3.12.050 Clearing delinquencies.

During the publication or posting of the foreclosure list and up to the time of transfer to the borough, a person may pay the taxes, together with the penalty, interest and costs. The collector shall note payment on the foreclosure list. (Ord. 30 §3, 1972).

3.12.060 List mailed to lienholder upon request.

A holder of a mortgage or other lien on real property may request the clerk to send by certified mail notice of a foreclosure list which includes such real property. (Ord. 30 §4, 1972).

3.12.070 General foreclosure procedure.

The borough shall bring one general foreclosure proceeding in rem against the properties included in the list. If the owner is unknown, the property is proceeded against as belonging to "unknown owner." Tax foreclosure proceedings have priority over all other civil proceedings except board of adjustment appeals as provided in AS 29.33.130(e). (Ord. 30 §5, 1972).

3.12.080 Foreclosure list--Answer and objection--Time limit.

A person having an interest in a tract on the foreclosure list may file an answer within thirty days of the date of last publication, specifying his objection. The court shall make its decision in summary proceedings. The foreclosure list is prima facie evidence that the assessment and levy of the tax is valid and that the tax is unpaid. (Ord. 30 §6, 1972).

3.12.090 Judgment.

The court shall, in a proper case, give judgment and decree that the tax liens be foreclosed. It is a several judgment against and a lien on each parcel. (Ord. 30 §7, 1972).

3.12.100 Transfer to borough of foreclosed properties--Hearing.

Foreclosed properties are transferred to the borough for the lien amount. When answers are filed, the court may enter judgment against, and order the transfer to the borough of, all other properties on the list pending determination of the matters in controversy. The court shall hear and determine the issues raised by the complaint and answer in the same manner and under the same rules as it hears and determines other actions. (Ord. 30 §8(a), 1972).

3.12.110 Judgment and decree--Delivery to borough clerk--Constitutes transfer.

The court clerk shall deliver a certified copy of the judgment and decree to the borough clerk. The certified judgment and decree constitutes a transfer to the borough. (Ord. 30 §8(b), 1972).

3.12.120 Judgment and decree--Stops objections.

The judgment and decree stops objections to it which could have been presented before judgment and decree. (Ord. 30 §8(c), 1972).

3.12.130 Judgment and decree--Appeal.

Appeal from a judgment and decree of foreclosure, or from a final order in the proceeding, may be taken in the manner provided for appeals in civil actions. (Ord. 30 §8(d), 1972).

3.12.140 Redemption period--Redeemed property subject to taxes, assessments, liens.

Properties transferred to the borough are held by the borough for at least one year. During the redemption period, a party having an interest in the property may redeem it by paying the lien amount plus penalties, interest, and costs. Property redeemed is subject to all taxes, assessments, liens and claims as though it had continued in private ownership. Only the amount applicable under the judgment and decree must be paid in order to redeem the property. (Ord. 30 §9(a), 1972).

3.12.150 Redemption of partial holdings.

A person holding a mortgage or other lien of record covering a part only of a parcel of real property included in the judgment and decree of foreclosure may redeem that part by paying the proportionate amount applicable under the judgment and decree. (Ord. 30 §9(b), 1972).

3.12.160 Redemption procedure.

Receipt of redemption money by the clerk releases all claims of the borough to the property. The clerk shall record the redemption and issue a certificate containing a property description, the redemption amount, and the dates of judgment and decree of foreclosure. The clerk shall file the certificate with the recorder, and collect the recording fee from the person redeeming at the time of redemption. The court clerk shall file the certificate as part of the judgment roll. (Ord. 30 §10, 1972).

3.12.170 Redemption by another lienholder to constitute additional lien.

If a property included in a foreclosure list is removed after payment of delinquencies or redemption by another lienholder, the payment represented by receipt for payment constitutes an additional lien on the property, collectible by the lienholder in the same manner as the original lien. (Ord. 30 §11, 1972).

3.12.180 Possession during redemption period.

Foreclosure does not affect the former owner’s right to possession during the redemption period. In the event that waste is committed by the former owner, or by anyone acting under his permission or control, the borough may declare an immediate foreclosure of the right to possession. (Ord. 30 §12, 1972).

3.12.190 Redemption period--Expiration notice--Posting and mailing.

Not earlier than thirty days before the expiration notice. The notice shall contain the date of judgement, the date of expiration of the period of redemption, and warning to the effect that all properties ordered sold under the judgment, unless redeemed, shall be deeded to the borough or city immediately on expiration of the period of redemption, and that every right or interest of any person in the properties will be forfeited forever to the borough or city. The notice shall be posted in three public places for at least four consecutive weeks. The clerk shall send a copy of the published notice by certified mail to each record owner of property against whom a judgment of foreclosure has been taken. The notice shall be mailed within five days of the first publication. The mailing shall be sufficient if mailed to the property owner at the last address of record.

The right of redemption shall expire thirty days after the date of the first publication notice. (Ord. 30 §13, 1972).

3.12.200 Unredeemed properties deeded to borough.

Unredeemed properties in the area of the borough outside cities are deeded to the borough by the clerk of the court. The deeds shall be recorded in the recording district in which the property is located. (Ord. 30 §14(a), 1972).

3.12.210 Conveyance to give clear title--Exception.

Conveyance gives the borough clear title except for prior recorded liens of the United States and the state. (Ord. 30 §14(b), 1972).

3.12.220 Deed not to be invalidated by defects--Presumed
valid when.

No deed is invalid for irregularities, omissions or defects, unless the former owner has been misled to his injury. After two years from the date of the deed, its validity is conclusively presumed and any claim of the former owner is forever barred. (Ord. 30 §14(c), 1972).

3.12.230 Sale of foreclosed properties permitted when.

Tax-foreclosed properties conveyed to a borough or city by tax foreclosure may be sold. Before the sale of any property held for a public purpose, the assembly, by ordinance, shall determine that the public need no longer exists. (Ord. 30 §15, 1972).

3.12.240 Repurchase by record owner.

At the time of tax foreclosure of property acquired by a borough or city, the record owner or his assigns may, at any time before the sale or contract of sale of the tax-foreclosed property by the borough or city, repurchase the property. The borough shall sell the property for the full amount applicable to the property under the judgment and decree, with interest at the rate of fifteen percent a year from the date of entry of the judgment of foreclosure to the date of repurchase, together with delinquent taxes, assessed and levied as though it had continued in private ownership. (Ord. 2005-15, 2005: Ord. 30 §16(a), 1972).

3.12.250 Termination of right to repurchase property devoted
to public purpose.

After termination of the right of redemption there is no right to repurchase property held for, or devoted to, a public purpose. (Ord. 30 §16(b), 1972).

3.12.260 Disposition of proceeds of tax sale.

Upon sale of foreclosed real or personal property, the borough or city shall divide the proceeds less the cost of the property. The division shall be in proportion to the respective municipal taxes against the property at the time of foreclosure. (Ord. 30 §17, 1972).

3.12.270 Payment of taxes upon public utilization.

If the borough holds or takes title to tax-foreclosed property for a public purpose, the borough shall satisfy unpaid taxes and assessments against the property held by other municipalities, with accrued interest but without penalty. If the amount required to satisfy the unpaid taxes and assessments exceeds the assessed valuation of the property, the city or borough shall pay the other municipalities in proportion to their respective taxes and assessments against the property at the time of foreclosure. (Ord. 30 §18, 1972).

3.12.280 Enforcement of personal property tax liens.

A. The collection of delinquent personal property tax liens shall be by distraint and sale of the property.

B. First a written demand shall be made of the person assessed for the delinquent tax, penalty and interest and shall advise the person that a period of thirty days to pay the delinquencies begins on the date of the mailing of the notice.

C. If the delinquent taxes are not paid in full prior to the expiration of the thirty-day period, the borough clerk shall seize the property by virtue of a warrant of distraint issued by the clerk to a peace officer.

D. After the property is seized, a notice shall be posted in prominent places within the borough for a period of fifteen days, listing the owner’s name, item seized, amount of delinquent tax plus penalty and interest. If not redeemed by the delinquent taxpayer within the fifteen-day posting period, items seized will be sold at public auction.

E. If the property sold is not sufficient to satisfy the delinquent tax, penalty, interest and cost of sale, the distraint warrant may authorize the seizure of other personal property sufficient to satisfy the delinquent tax penalty, interest and cost of sale.

F. If the property is sold for more money than is needed to satisfy the tax, the municipality shall remit the excess to the former record owner upon presentation of a proper claim. A claim for the excess filed after six months of the date of the sale is forever barred. (Ord. 2007-08 §3, 2007; Ord. 78-19 §1, 1978: Ord. 30 §19, 1972).

For statutory provisions concerning the enforcement of tax liens, see AS 29.45.310 et seq.