BY JEFF CHUDZINSKINorth Country This Week

CANTON -- St. Lawrence County has approved amending a local law that will allow the county to recoup fees and expenses related to the acquisition and sale of tax delinquent properties.

St. Lawrence County Attorney Steve Button said the law was amended following the Tyler v. Hennepin County decision by the Supreme Court.

"This local law will help the county facilitate the tax delinquency process and recapture expenses or costs for cleanup, remediation of waste or general administrative expenses incurred with the process of acquiring and selling tax delinquent properties," Button said.

In that case, the Supreme Court unanimously held that a Minnesota statutory scheme deprived a property owner of her condominium's surplus equity in excess of her tax debt, calling the move a "classic taking."

With that ruling in place, states with similar statutory schemes, including New York, would be forced to remit the excess funds from the sale of a tax delinquent property to the previous owner once the county was made whole on the delinquent taxes.

Button said the state then had to scramble to establish a response bill that would allow counties to be made whole for other fees and services incurred while handling the tax delinquent property.

New York is one of 12 states with a similar statutory scheme in place, all affected by the Supreme Court's decision in the Hennepin case.

Numerous lawsuits have also been filed and enjoined following the Supreme Court's decision as well.

Button said the new local law will allow the county to bill for permitted expenses, such as administrative expenses, environmental remediation expenses and similar expenses that may be incurred when the county takes over such properties.

He said in some cases the county would still be operating at a loss but by implementing the new law, it would lessen the burden in the end.

"If a property owner owed $15,000 in taxes and environmental remediation cost $30,000, the county would be owed $45,000. If that property, following remediation, were to sell for $40,000 the county would still be down $5,000," he said.

But that is far better than the alternative, he said.

When the county is forced to take action on a tax delinquent property, Button said that action wipes out any existing lien holders so the county has a clear title for the property.

If a property were to sell for a far greater amount than was owed, the excess would inevitably go to the formerly tax delinquent individual or estate.

Button said on average the county sends around 150 to 200 properties to auction each September.

That involves significant leg work and allocation of resources to ensure the properties are ready for auction.

"We start with anywhere from 1,700 to 3,000 properties though," he said.

Over the course of the spring and summer, most people pay off their taxes, while another group typically sets up a conference to work out a payment plan.

"Most of the properties that are left after that are typically abandoned," he said.

Of the 160 or so properties that the county offered a conference for, Button said a dozen actually set up a meeting.

"Nine were residential and three were corporate. When we hold a conference we try to make people aware of programs that may be able to help them. We don't want to take properties from anyone, so we try to work with them as much as possible and provide as much guidance as we can," he said.