4
Steps
Leading Up to The Issuance of a Distraint Warrant
•Our 1st objective is to
try to always obtain voluntary payment of the tax (thereby avoiding the necessity to even issue a distraint warrant) however, if that fails – follow these
steps:
1. Confirm
legal reason for distraint (it is now October and the property has been
advertised in September, or you
have declared the collection of the taxes in jeopardy).
Ø39-10-111. Distraint, sale of personal property –
redemption of mobile home. (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…………
Ø39-10-113. Removal or transfer of personal property –
collection of taxes. (1) (a) If at any
time after the lien of general taxes has attached the treasurer believes for any reason that any taxable personal property may be removed from
the state of Colorado or
may be dissipated or distributed, so that taxes to be levied for the current year may not be collectible, the treasurer may
at once proceed to collect the taxes
and, if the treasurer deems it necessary, may distrain, seize, and sell the property to enforce collection.
vIf
39-10-113 is the reason for the distraint - collect all taxes, penalty and
interest due (the
current year taxes and any prior years).
v“Believes
for any reason,” although this provides great latitude, always have solid objective and supportable reasons that “could easily be
defended in court.” Examples: 1) Business is closing and has outstanding
taxes, and has either refused to
pay or asked to pay close to or after the closure date. In this case the property is in jeopardy of being dissipated or distributed. 2)
The business is moving out-of-state. 3)
The business is moving out of your county and you have reason to
believe that a material amount
of the personal property may be dissipated or distributed. 3) The company is selling a material part of the assessed
assets. “Material” can be based on either the dollar value of an asset(s) or a
volume % of the assessed assets.
