City of Vernon issues public notice after home sold to cover unpaid taxes

A Vernon, B.C., homeowner has been given notice by the city that his property has been auctioned to cover unpaid taxes.

On Tuesday, the city issued a tax sale redemption notice on its website after the townhome on Browne Road was sold two months ago, on Sept. 27, to cover the taxes.

The public notification says homeowner Donald Lee Pressman has 10 months, or until Sept. 27, 2022, to redeem the outstanding tax debt.

Tuesday’s notice also said that, via a B.C. Supreme Court decision, the City of Vernon may substitutionally serve notice on Pressman via the city’s website.

According to the city, the homeowner owed just over $6,200 in taxes and interest.

The townhome was auctioned for $245,000 at the tax sale, with the city holding the funds in trust during the redemption period.

Notably, though, the city says the homeowner not only has to pay back the outstanding taxes, plus interest, but also has to pay interest owed on the winning bid.

“The city is required to notify the property owner of the tax sale and redemption period. Despite the city’s best efforts, we have not been able to make contact with the property owner,” the city told Global News in an email.

“Therefore, in accordance with the Local Government Act and an order by the B.C. Supreme Court, the city must take specific steps to reasonably provide notice to the property owner.”

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The notification comes just two weeks after B.C.’s ombudsperson issued a scathing report after the City of Penticton sold a home for unpaid taxes.

That Penticton home, owned by a vulnerable woman, had a fair market value of $420,000 but was sold for $150,000 — an equity loss of $270,000.

The ombudsperson’s report, titled ‘A Bid for Fairness,’ said the vulnerable homeowner had the funds to cover the taxes, but that personal challenges made it difficult to pay.

The report said her failure to pay resulted in her home being sold in a tax sale auction, a process that allows municipalities to collect unpaid taxes by selling properties two years after taxes are first due.

“The results of this investigation are disturbing,” said ombudsperson Jay Chalke, noting the homeowner was evicted after the home was sold. “Ms. Wilson was a vulnerable member of the Penticton community and just needed some extra assistance to pay her taxes.

“The City of Penticton called Ms. Wilson once but did not contact the public guardian and trustee or Interior Health who have the legal mandate to make inquiries as to whether an adult is vulnerable and needs support or assistance. The city’s failure to reach out to one of these helping organizations contributed to a devastating and preventable loss.”

The report also asked that the city pay the woman roughly half of her equity loss, or $140,000.

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At first, the city disagreed, but changed its tune following a special meeting by city council, with council agreeing to pay $140,922.99.

Penticton Mayor John Vassilaki issued an apology, saying the city acknowledged its part in the process, and that the city is committed to working to improve provincial legislation related to property tax sales.

In Vernon, the city said the steps currently being taken are in line with usual and required practice, while adding that “the circumstances in Penticton have not played a role in the efforts or channels used by the City of Vernon to notify the property owner.”

The city said it also posted a notice on the door of the townhome, left a copy with the strata owners, mailed out a copy to the homeowner and published the notice in a newspaper.

The city noted it’s not often that a tax sale goes through the full redemption period, with the last time being 2018, though that sale involved bare land with no structures.

In Kelowna, the city said two were sold in 2021, though the homeowners have 10 months to redeem them. Between 2018 and 2020, no homes were sold.

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