EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0980*
SENATE BILL 980
Q1 2lr3053
By: Senator Edwards
Introduced and read first time: February 18, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Property Tax – Tax Sales – Restriction of Bidders 2
FOR the purpose of prohibiting certain persons from bidding on property at a tax sale; 3
requiring the collector of taxes to declare a certificate of sale void and issue a new 4
certificate of sale to the governing body of a county or municipal corporation under 5
certain circumstances; prohibiting assignment of a certificate of sale to certain 6
persons; and generally relating to tax sales. 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 14–817(a)(4) and (5) and 14–821 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2021 Supplement) 12
BY adding to 13
Article – Tax – Property 14
Section 14–817(a)(5) and 14–820.1 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Tax – Property 20
14–817. 21
(a) (4) The conduct of the sale shall be according to terms set by the collector, 22
and published with a reasonable degree of specificity in the public notice of the tax sale, to 23
ensure the orderly functioning of the public auction and the integrity of the tax sale process, 24
including requirements that potential bidders: 25 2 SENATE BILL 980
(i) establish their eligibility for bidding by presenting: 1
1. evidence of the legal existence of the bidding entity that is 2
satisfactory to the collector; AND 3
2. THE STATEMENT REQUIR ED UNDER PARAGRAPH (5) 4
OF THIS SUBSECTION ; 5
(ii) limit their representation at a tax sale to no more than a single 6
agent per bidding entity; and 7
(iii) refrain from any act, agreement, consent, or conspiracy to 8
suppress, predetermine, rig, or fix the bidding at the sale. 9
(5) (I) A PERSON MAY NOT BID O N PROPERTY OFFERED FOR SALE 10
BY A COUNTY OR MUNIC IPAL CORPORATION UND ER THIS PART IF THE PERSON: 11
1. HAS UNPAID REAL OR P ERSONAL PROPERTY TAX ES 12
OWED TO THE COUNTY O R MUNICIPAL CORPORAT ION; 13
2. HAS UNPAID JUDGMENTS FOR CIVIL OR MUNICIP AL 14
INFRACTIONS OWED TO THE COUNTY OR MU NICIPAL CORPORATION ; OR 15
3. PAID OR WAS FOUND GU ILTY OF AT LEAST THR EE 16
CIVIL OR MUNICIPAL I NFRACTIONS IN THE 5–YEAR PERIOD IMMEDIAT ELY 17
PRECEDING THE DATE O F THE TAX SALE THAT RELATE TO PROPERTY OWNED BY THE 18
PERSON IN THE COUNTY OR MUNICIPAL CORPORA TION. 19
(II) A BUSINESS ENTITY MAY NOT BID ON PROPERTY AT A TAX 20
SALE IF AN INDIVIDUAL WHO IS PROHIBITED FROM BIDD ING ON PROPERTY AT A TAX 21
SALE UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH HAS AN OWNERSHIP 22
INTEREST IN THE BUSI NESS ENTITY. 23
(III) BEFORE A TAX SALE , THE COLLECTOR SHALL REQUIRE 24
EACH POTENTIAL BIDDER TO EXECUTE A STATEMENT UNDER PENALT Y OF PERJURY 25
THAT THE POTENTIAL B IDDER IS NOT PROHIBI TED FROM BIDDING ON PROPERTY AT 26
THE TAX SALE UNDER S UBPARAGRAPH (I) OF THIS PARAGRAPH . 27
[(5)] (6) (i) If determined by the collector to be in the best public 28
interest and included in the required public notice of the sale, the collector may solicit and 29
accept bids from the highest bidder for any group of properties to be sold at the tax sale. 30
SENATE BILL 980 3
(ii) 1. Upon the request of any individual or group, the collector 1
may remove any individual property or properties from a group of properties to be sold at 2
the tax sale. 3
2. Upon the request of the property owner at least 15 days 4
before the date of the tax sale, the collector shall remove any individual property or 5
properties from a group of properties to be sold at the tax sale. 6
(iii) The collector shall provide notice to the potential bidders of any 7
alterations to a group of properties at the time the bidders become known. 8
(iv) The collector may conduct the sale of a group of properties under 9
this paragraph by a sealed bid process. 10
(v) Except in Montgomery County, the collector shall establish a 11
high–bid premium under subsection (b)(2) of this section for all properties to be sold: 12
1. in groups; or 13
2. by sealed bid process. 14
14–820.1. 15
(A) THE COLLECTOR SHALL DECLARE A CERT IFICATE OF SALE VOID IF THE 16
COLLECTOR DISCOVERS BEFORE A FINAL JUDGM ENT FORECLOSING THE RIGHT OF 17
REDEMPTION IS ENTERE D THAT THE CERTIFICA TE OF SALE WAS DELIV ERED TO A 18
PERSON WHO WAS PROHIBITED UNDER § 14–817(A)(5) OF THIS SUBTITLE FROM 19
BIDDING ON THE PROPERTY . 20
(B) FOR EACH PROPERTY FOR WHICH THE COLLECTOR DECLARES T HE 21
CERTIFICATE OF SALE VOID UNDER SUBSECTION (A) OF THIS SECTION , THE 22
COLLECTOR SHALL ISSU E A NEW CERTIFICATE OF SALE IN THE NAME OF THE 23
GOVERNING BODY OF TH E COUNTY OR MUNICIPAL CORPORATIO N THAT CONDUCTED 24
THE TAX SALE AT WHIC H THE PROPERTY WAS S OLD. 25
(C) THE COLLECTOR MAY REF ER A PERSON WHO FALSELY STATED T HAT 26
THE PERSON WAS NOT P ROHIBITED FROM BIDDING ON A PR OPERTY UNDER § 27
14–817(A)(5) OF THIS SUBTITLE TO THE STATE’S ATTORNEY FOR PROSECUTION FOR 28
PERJURY. 29
14–821. 30
(a) Except as provided in subsection (b) of this section, any certificate of sale 31
executed and delivered by the collector to the purchaser is assignable and an assignment 32
of the certificate of sale vests in the assignee, or the legal representative of the assignee, all 33 4 SENATE BILL 980
the right, title, and interest of the original purchaser. The assignment of certificate of sale 1
may be made in accordance with the provisions of law relating to the short assignment of 2
mortgages. 3
(b) (1) A certificate of sale issued to a purchaser at a limited auction under § 4
14–817(d) of this subtitle may not be assigned to another person. 5
(2) A CERTIFICATE OF SALE MAY NOT BE ASSIGNED TO A PERSON WHO 6
IS PROHIBITED FROM B IDDING ON PROPERTY AT A TAX SALE UNDER § 14–817(A)(5) 7
OF THIS SUBTITLE. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2022. 10