SB 829

Under current law, a county distributes the net proceeds of the sale of tax

delinquent property to the former owner of the property if the former owner requests

payment and if the former owner used the property as his or her homestead at any

time during the five years preceding the county's acquisition of the property. Under

the bill, the county pays the net proceeds to any former owner of tax delinquent

property, regardless of whether the former owner requests payment and regardless

of whether the former owner used the property as his or her homestead.

Upon the county's acquisition of a tax deed on tax delinquent property, current

law requires the county treasurer to provide notice to the former owner that the

former owner may be entitled to a share of the proceeds of a future sale of the

property. If the former owner submits to the county a written request within 60 days

after receiving the notice to receive payment, the county will distribute the proceeds

to the former owner, minus the amount of any delinquent taxes, interest, and

penalties and minus the greater of the following:

1. Five hundred dollars plus 50 percent of the amount obtained by subtracting

$500 from the remaining net proceeds.

2. The actual costs of selling the property, plus 2 percent of the sales price, plus

amounts disbursed to taxing jurisdictions to pay for special assessments, special

charges, and fees for withdrawing land from the managed forest land program, and

plus the amount of the property taxes that would have been owed on the property for

the year during which the sale occurs if the county had not acquired the property.

Under the bill, the county distributes to the former owner the proceeds, minus

the following: 1) the amount of any delinquent taxes, interest, and penalties; 2) any

liens against the property; and 3) the actual costs of selling the property, plus

amounts disbursed to taxing jurisdictions to pay for special assessments, special

charges, and fees for withdrawing land from the managed forest land program; and

plus the amount of the property taxes that would have been owed on the property for

the year during which the sale occurs if the county had not acquired the property.

The bill eliminates the additional penalty equal to 2 percent of the sales price.