Colorado § 39-10-111 - Distraint, sale of personal property.

§ 39-10-111. Distraint, sale of personal property.

(1) (a) At any time after the first day of October, the treasurer shall enforce collection of delinquent taxes on personal property by commencing a court action for collection or employing a collection agency as provided in section 39-10-112 or by distraining, seizing, and selling the property; except that this section does not apply to the collection of delinquent taxes on mobile homes or manufactured homes. The treasurer shall enforce the collection of delinquent taxes on mobile homes or manufactured homes pursuant to section 39-10-111.5. Whenever a distraint warrant is issued, it shall be served by the sheriff or a commissioned deputy or, at the discretion of the sheriff, by a private server of process hired for the purpose. Any cost incurred as a result of hiring a private server of process shall be paid by the sheriff's office, and the cost shall not exceed the amount specified in section 30-1-104 (1)(a).

(b) When personal property upon which a distraint warrant has been issued or which is subject to such warrant by reason of delinquency has been removed to another county in the state, the treasurer of the county levying the tax may issue a certificate to the treasurer of the county to which the property has been removed, reciting the amount of taxes and delinquent interest unpaid and a description of the property to be distrained.

(c) The treasurer receiving such certificate shall thereupon proceed to distrain, seize, and sell such property in the same manner as if the property were originally taxed in his county and shall remit the net proceeds, after payment of any sheriff's fees and other costs of seizure and sale, to the treasurer who certified the delinquency to him.

(2) Whenever any personal property is distrained and seized, the treasurer or his deputy shall make a list of such property and deliver a copy thereof to the owner of such property or to his or her agent, together with a statement of the amount demanded and notice of the time and place fixed for the sale of such property.

(3) No later than one hundred eighty days after the seizure of any personal property pursuant to this section, the treasurer shall publish a notice containing a description of the seized property, the reason for its being offered for sale, and the time and place fixed for the sale in a newspaper published in the county. If there is no such newspaper, the treasurer shall conspicuously post copies of such notice in the county courthouse and in at least two other public places in the county seat.

(4) The time fixed for the sale shall be not more than ten days from the date the notice is first published, but the sale may be adjourned from time to time if there are no bidders or if the treasurer deems such adjournment advisable for any reason, but in no event shall the sale be postponed for more than thirty days from the date the notice is first published.

(5) At the time and place fixed for the sale, the treasurer or deputy treasurer shall proceed to sell such property at public auction, offering it at a minimum price, which shall include the taxes, delinquent interest, and costs of making the seizure and advertising the sale. If the amount bid at the sale is not equal to the fixed minimum price, the treasurer or deputy treasurer may declare the property purchased by the county at the fixed minimum price, and it shall thereafter be sold within one hundred fifty days in such manner as may be determined by the board of county commissioners.

(6) (a) In any county wherein the treasurer has insufficient personnel to conduct said sale, upon demand of the treasurer, the sheriff shall conduct such sale, collect the proceeds thereof, and pay the same over to the treasurer. In such event, the sheriff shall receive such fees as are provided in section 30-1-104, C.R.S.

(b) The treasurer may enter into a contract to employ the services of any professional auctioneer or auction company to conduct such sale, collect the proceeds thereof, and pay the same over to the treasurer, when the treasurer deems such services to be appropriate and to be in the best interests of the public. Such contract shall be awarded by competitive bid, but the treasurer may reject any or all bids or parts of bids. The auctioneer or auction company conducting such sale shall provide the treasurer with an itemized list of all property sold, the amount paid for such property sold, and each purchaser's name and address. The fees of the auctioneer or auction company shall be paid by the treasurer from the proceeds of the sale.

(7) In all cases of sale, the treasurer shall issue a certificate of sale to each purchaser, and such certificate shall be prima facie evidence of the right of the treasurer to make such sale and conclusive evidence of the regularity of the proceedings in conducting and making such sale. The treasurer's certificate shall transfer to the purchaser all right, title, and interest of the owner in and to the property sold.

(8) Any surplus of the sale proceeds remaining over and above the taxes, delinquent interest, and costs of making the seizure and advertising the sale shall be paid over to the owner and a written account of the sale furnished him.

(9) If, prior to the time fixed for the sale, the amount demanded is paid to the treasurer, the property distrained upon and seized shall be restored to the owner thereof.

(10) Repealed.

(11) If taxes become delinquent upon the personal property of any public utility, as defined in article 4 of this title, the treasurer of the county in which the taxes are delinquent shall commence a court action for collection or employ a collection agency as provided in section 39-10-112 or distrain and sell any of the personal property of the utility wherever found in the manner that other personal property is to be distrained and sold for the nonpayment of taxes; except that, for taxes imposed pursuant to article 1 of title 32, C.R.S., that equal or exceed one hundred mills in any one year, only the personal property that is the subject of the taxes and located within the special district at the time of assessment of the taxes shall be subject to levy or distraint for the payment of the delinquent taxes.

(12) Repealed.

(13) When a county seizes property that is used in a business, the county shall not continue to operate the business.

Source: L. 64: R&RE, p. 719, § 1. C.R.S. 1963: § 137-10-11. L. 67: p. 212, § 2. L. 70: p. 389, § 2. L. 77: (7) amended and (10) added, p. 1742, § 4, effective January 1, 1980. L. 78: (2) and (10) amended, pp. 478, 480, §§ 3, 4, effective March 10. L. 79: (11) added, p. 1421, § 5, effective January 1, 1980. L. 80: (10) amended, p. 499, § 4, effective July 1. L. 82: (10) amended, p. 550, § 15, effective July 1. L. 90: (10) amended, p. 1698, § 24, effective June 9. L. 91: (5) and (6) amended, p. 1972, § 3, effective March 27; (10) amended and (12) added, p. 1697, § 8, effective July 1. L. 92: (1)(b), (5), (8), and (10) amended, p. 2228, § 14, effective April 9. L. 93: (1)(a) amended, p. 305, § 3, effective April 7. L. 94: (4) amended, p. 754, § 5, effective April 20. L. 95: (11) amended, p. 128, § 2, effective April 7. L. 96: (1)(a) and (11) amended, p. 13, § 1, effective February 22. L. 2000: (10) amended, p. 1637, § 15, effective June 1. L. 2004: (3) and (5) amended and (13) added, p. 158, § 1, effective August 4. L. 2017: (1)(a), (2), and (7) amended and (10) and (12) repealed, (HB 17-1354), ch. 215, pp. 837, 840, §§ 1, 3, effective August 9.

Cross references: For recordation of tax sales of mobile homes by the county treasurer and the fee therefor as part of redemption cost, see § 39-11-114.

ANNOTATION

Law reviews. For article, "Delinquent Oil and Gas Ad Valorem Taxes: Protecting Property Interests", see 16 Colo. Law. 798 (1987).

Annotator's note. The following annotations include cases decided under former provisions similar to this section.

Service of distraint warrant no delegation of power to collect taxes. The service of a distraint warrant does not constitute a delegation of power to collect by the treasurer to the sheriff. Goldsmith v. McAnally, 92 Colo. 384, 20 P.2d 1009 (1933).

Personal property tax sale extinguishes prior liens. A personal property tax sale under the provisions of subsection (7) extinguishes all prior liens and encumbrances. Moorehead v. John Deere Indus. Equip. Co., 194 Colo. 398, 572 P.2d 1207 (1977).

Section 39-10-113 and subsection (11) of this section do not authorize the distraint, seizure, and sale of the taxable personal property of a lessor to satisfy the personal property tax of the lessee. In re W. Pac. Airlines, 273 F.3d 1288 (10th Cir. 2001).

County treasurer not indispensable party in proceeding challenging lien priority. In a tax sale, the county treasurer who issued the certificate of sale to purchaser of tax sale was not an indispensable party under C.R.C.P. 19(a) to a proceeding challenging priority of lien of a secured party in the property sold at the tax sale, since complete relief could be and was afforded without the treasurer's presence as a party. John Deere Indus. Equip. Co. v. Moorehead, 38 Colo. App. 220, 556 P.2d 91 (1976), rev'd on other grounds, 194 Colo. 398, 572 P.2d 1207 (1977).