SB 918

This bill makes changes to current law regarding the process by which a county

sells land it has acquired by a tax-deed for the enforcement and collection of

delinquent property taxes. The changes include the following:

1. Under current law, a county board is authorized to engage licensed real

estate brokers and salespersons to assist in selling tax-deeded land. Under the bill,

the county may sell such lands by open or closed bid.

2. Under current law, when selling tax-deeded land, the county may give

preference to the former owner or heirs of the former owner who wish to purchase

the land. Under the bill, the county may also give preference to the beneficiaries of

the former owner who wish to purchase the land.

3. Except for counties with a population of 750,000 or more, current law

prohibits the sale of tax delinquent real property acquired by a county unless the sale

and appraised value of the property has first been advertised by publication of a class

3 notice. However, a county that enacts an ordinance giving preference to the former

owner or the heirs of the owner who wish to purchase the property is exempt from

the requirement that the sale must first be advertised by publishing a notice, if the

net proceeds from the sale are sufficient to pay all special assessments and special

charges on the property, including interests.

Under the bill, this exemption applies if the net proceeds from the sale are equal

to or exceed the amounts owed the county as delinquent taxes, interests, penalties,

and amounts associated with selling the property.

4. Under current law, the net proceeds from the county's sale of the property

are determined by subtracting certain amounts from the sales price, such as the

amount of real estate agent or broker fees paid for selling the property. The bill

modifies current law by allowing the subtraction of reasonable and customary real

estate agent or broker fees or other actual costs paid for selling the property.

5. Under current law, if the county is unable to locate the former owner within

five years following the mailing of the notice, the former owner forfeits the right to

any remaining equity in the property. The bill eliminates that provision.