The bill also alters the protocol concerning bankruptcy filings related to tax sales. Currently, if a bankruptcy petition is filed after a tax sale but before the issuance of a tax deed, the sale may proceed as normal unless a stay is active on the date of sale. The proposed legislation removes the allowance for sales in error once a bankruptcy petition has been filed post-sale, thereby tightening the regulations around such situations. These changes seek to support tax collectors and provide clearer criteria for administrating refunds.
Summary
House Bill 3480 amends the Property Tax Code to introduce various significant changes regarding sales in error. The bill establishes that for a sale in error to occur, the error must be material to the tax sale in question. This covers only errors made by officials such as assessors, chief county assessment officers, or boards of review and not errors in descriptions of the physical characteristics or location of the property. This change aims to streamline procedures around tax sales and protect the integrity of taxpayer records.
Contention
One notable point of contention surrounding HB3480 is its impact on property owners facing bankruptcy. Critics of the bill argue that it may add an additional layer of complexity for those attempting to resolve their tax obligations when under financial distress. Furthermore, limiting changes to only material errors may prevent property owners from contesting sales based on more minor inaccuracies, which could lead to wrongful property loss in some instances.