River City reins in speculators

By DALE BASS Staff reporter Sep 24 2006 http://www.kamloopsthisweek.com/
A couple of years ago, a man from the Coast came to Kamloops with a cheque for $500,000. A year later, the city gave him the money back, along with nine per cent interest. Not a bad deal, said City of Kamloops revenue manager Ron Gowling, and it's why the city now handles its annual tax sale differently. Now, the city buys the properties. "So, at the end of the year, if the properties are redeemed outstanding taxes are paid], we get the nine per cent interest instead, and it goes into the coffers to help keep your taxes down." Once a year, properties that have not had property taxes paid for at least three consecutive years are in essence seized by the city and put up for sale. This year, the sale takes place Monday at 10 a.m. in city council chambers, at 7 Victoria St. West. Purchasers don't get to move right in, though, having scooped a honey of a deal, Gowling said. The owners have one year from the date of the sale to pay what's called the upset price - the delinquent taxes and interest, the current year's taxes plus any penalty, five per cent of the total of those two amounts, plus $85.20 for the land title office fees. Because buyers have to wait a year, the city pays nine per cent interest on their money.
And, after the mass purchase of a few years ago, the city's policy was changed to see it benefit, rather than speculators, Gowling said. Now, the city will outbid just about anyone on any property. "So I tell people who think they're gonna make a million, buying one of these places and fixing it up and selling it, to forget it," Gowling said. "Because we'll outbid them. We'll almost always go $1 more than them." He said he's heard of people going to listed houses before the sale, announcing they plan to buy the house and wanting to inspect it. Last year, of the 11 properties that were put up for sale, the city bought seven. The original list was 51, but Gowling spent several hours calling the owners to tell them to pay up or lose their home. He's done the same thing this year "because we really don't want to sell a person's house from them. We just want them to pay their taxes."
As of Friday, the list was down to 15 for Monday's sale, but Gowling said he expected to see some more people coming in to pay their bill before the sale begins.
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Notice of Tax SaleThe auction will be held on Monday, September 25, 2006 at 10:00 a.m. in the City of Vernon Fire Hall, 3401 30th Street, Vernon.
City Of Vernon Tax Sale Info