Revenue and Taxation Code section 4675 provides for the distribution of monies from the sale of a tax-defaulted property where the sales price exceeds the amount of the property taxes and associated penalties, interest and costs owed on the property plus the costs related to the tax sale. It grants the Board of Supervisors certain powers in distributing these excess proceeds, such as determining the information and proof necessary to make a claim for excess proceeds and a claimant’s order of priority to the proceeds. The statute permits the Board of Supervisors to authorize the Treasurer-Tax Collector to exercise the powers granted to the Board. The Board also may adopt rules and procedures relating to the authorization. The Auditor-Controller is required to record each act performed under the authorization.  
  
The attached “Contra Costa County Policy Regarding Claims for Excess Proceeds” (“Policy”) provides rules and procedures governing the distribution of excess proceeds. The Board’s action will establish a formal policy regulating the distribution of excess proceeds in the County that would guide the Treasurer-Tax Collector in distributing the monies. Authorizing the Treasurer-Tax Collector, or designee, to distribute excess proceeds, rather than requiring the Board to consider these matters, will assist the Treasurer-Tax Collector to more quickly determine the proper distribution of excess proceeds and distribute those monies so the funds can be promptly paid to the persons entitled to them.  

Failure to take the recommended action will require the Board of Supervisors to provide guidance and approval concerning the appropriate distribution of monies after each tax sale where the sales price exceeds the costs related to the tax sale and property taxes and associated penalties, interest and costs owed on the property.