Maryland 2023 Regular Session

Maryland House Bill HB779 Compare Versions

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1- WES MOORE, Governor Ch. 79
21
3-– 1 –
4-Chapter 79
5-(House Bill 779)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0779*
89
9-Tax Sales – Revisions
10+HOUSE BILL 779
11+Q2, Q1 3lr1302
12+ CF SB 518
13+By: Delegates Buckel, Grossman, and Hinebaugh
14+Introduced and read first time: February 8, 2023
15+Assigned to: Ways and Means
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 5, 2023
1019
11-FOR the purpose of authorizing the governing body of a county or municipal corporation to
12-file a motion with a court to request that a certain certificate of sale be assigned to
13-the governing body of the county or municipal corporation in a certain foreclosure
14-action under certain circumstances; providing that, on a grant of the motion by the
15-court, the holder of the certificate of sale forfeits certain rights and the amount paid
16-to acquire the certificate of sale; authorizing a court, under certain circumstances, to
17-strike the final judgment in a tax sale action foreclosing the right of redemption in a
18-property and grant the governing body of a county or municipal corporation the right
19-to pay the balance of the purchase price due on the property; requiring a court to
20-direct a tax collector to execute a deed to the governing body of a county or municipal
21-corporation on payment by the governing body of the purchase price due on the
22-property; requiring the governing body of a county or municipal corporation to take
23-title to the property in a certain manner; authorizing a county or municipal
24-corporation to withhold a property from tax sale if the county or municipal
25-corporation intends to demolish a vacant and blighted building or structure on the
26-property; requiring the collector of taxes to deliver a certificate of sale to the
27-governing body of a county or municipal corporation for each property withheld from
28-sale by the county or municipal corporation under certain provisions of law; applying
29-certain provisions of this Act retroactively; and generally relating to tax sales.
20+CHAPTER ______
3021
31-BY adding to
32- Article – Tax – Property
33- Section 14–820.1 and 14–821(c)
34- Annotated Code of Maryland
35- (2019 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
3623
37-BY repealing and reenacting, with amendments,
38- Article – Tax – Property
39-Section 14–811(c) and 14–847
40- Annotated Code of Maryland
41- (2019 Replacement Volume and 2022 Supplement)
24+Tax Sales – Revisions 2
4225
43- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
44-That the Laws of Maryland read as follows:
26+FOR the purpose of authorizing the governing body of a county or municipal corporation to 3
27+file a motion with a court to request that a certain certificate of sale be assigned to 4
28+the governing body of the county or municipal corporation in a certain foreclosure 5
29+action under certain circumstances; providing that, on a grant of the motion by the 6
30+court, the holder of the certificate of sale forfeits certain rights and the amount paid 7
31+to acquire the certificate of sale; authorizing a court, under certain circumstances, to 8
32+strike the final judgment in a tax sale action foreclosing the right of redemption in a 9
33+property and grant the governing body of a county or municipal corporation the right 10
34+to pay the balance of the purchase price due on the property; requiring a court to 11
35+direct a tax collector to execute a deed to the governing body of a county or municipal 12
36+corporation on payment by the governing body of the purchase price due on the 13
37+property; requiring the governing body of a county or municipal corporation to take 14
38+title to the property in a certain manner; authorizing a county or municipal 15
39+corporation to withhold a property from tax sale if the county or municipal 16
40+corporation intends to demolish a vacant and blighted building or structure on the 17
41+property; requiring the collector of taxes to deliver a certificate of sale to the 18
42+governing body of a county or municipal corporation for each property withheld from 19
43+sale by the county or municipal corporation under certain provisions of law; applying 20
44+certain provisions of this Act retroactively; and generally relating to tax sales. 21
4545
46-Article – Tax – Property
46+BY adding to 22
47+ Article – Tax – Property 23
48+ Section 14–820.1 and 14–821(c) 24 2 HOUSE BILL 779
4749
48-14–821.
49- Ch. 79 2023 LAWS OF MARYLAND
5050
51-– 2 –
52- (C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L
53-CORPORATION MAY FILE A MOTION WI TH THE COURT REQUEST ING THAT A
54-CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR
55-MUNICIPAL CORPORATIO N IF:
51+ Annotated Code of Maryland 1
52+ (2019 Replacement Volume and 2022 Supplement) 2
5653
57- (I) A FORECLOSURE ACTION HAS BEEN INITIATED B Y THE
58-HOLDER OF THE CERTIF ICATE OF SALE IN ACC ORDANCE WITH THIS SU BTITLE; AND
54+BY repealing and reenacting, with amendments, 3
55+ Article – Tax – Property 4
56+Section 14–811(c) and 14–847 5
57+ Annotated Code of Maryland 6
58+ (2019 Replacement Volume and 2022 Supplement) 7
5959
60- (II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR
61-A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A MOTION FOR THE
62-ENTRY OF A FINAL ORD ER HAS NOT BEEN FILE D IN THE FORECLOSURE ACTION
63-WITHIN 18 MONTHS AFTER THE FIL ING OF THE COMPLAINT , WHICHEVER IS
64-EARLIER.
60+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
61+That the Laws of Maryland read as follows: 9
6562
66- (2) ON THE FILING OF A MO TION UNDER THIS SUBS ECTION, THE
67-COURT SHALL DIRECT T HE HOLDER OF THE CER TIFICATE OF SALE TO SHOW GOOD
68-CAUSE AS TO WHY THE COURT SHOULD NOT GRA NT THE MOTION .
63+Article – Tax – Property 10
6964
70- (3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND
71-TO THE MOTION IN ACC ORDANCE WITH THE MARYLAND RULES, THE COURT SHALL
72-GRANT THE MOTION .
65+14–821. 11
7366
74- (4) IF A COURT GRANTS A M OTION UNDER THIS SUB SECTION, THE
75-HOLDER OF THE CERTIF ICATE OF SALE SHALL FORFEIT:
67+ (C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L 12
68+CORPORATION MAY FILE A MOTION WITH THE CO URT REQUESTING THAT A 13
69+CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR 14
70+MUNICIPAL CORPORATIO N IF: 15
7671
77- (I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND
72+ (I) A FORECLOSURE ACTION HAS BEEN INIT IATED BY THE 16
73+HOLDER OF THE CERTIF ICATE OF SALE IN ACC ORDANCE WITH THIS SU BTITLE; AND 17
7874
79- (II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE.
75+ (II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR 18
76+A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A MOTION FOR THE 19
77+ENTRY OF A FINAL ORD ER HAS NOT BEEN FILED I N THE FORECLOSURE AC TION 20
78+WITHIN 18 MONTHS AFTER THE FIL ING OF THE COMPLAINT , WHICHEVER IS 21
79+EARLIER. 22
8080
81-14–847.
81+ (2) ON THE FILING OF A MO TION UNDER THIS SUBS ECTION, THE 23
82+COURT SHALL DIRECT T HE HOLDER OF THE CER TIFICATE OF SALE TO SHOW GOOD 24
83+CAUSE AS TO WHY THE COURT SHOULD NOT GRANT THE MOTION. 25
8284
83- (a) (1) (I) Except as provided in paragraph (2) of this subsection, the
84-judgment of the court shall direct the collector to execute a deed to the holder of the
85-certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector
86-of the balance of the purchase price, due on account of the purchase price of the property,
87-together with all taxes and interest and penalties on the property that accrue after the date
88-of sale.
85+ (3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND 26
86+TO THE MOTION IN ACC ORDANCE WITH THE MARYLAND RULES, THE COURT SHALL 27
87+GRANT THE MOTION . 28
8988
90- (II) The judgment shall direct the supervisor to enroll the holder of
91-the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the
92-property.
89+ (4) IF A COURT GRANTS A M OTION UNDER THIS SUB SECTION, THE 29
90+HOLDER OF THE CERTIF ICATE OF SALE SHALL FORFEIT: 30
9391
94- (2) In Frederick County, if the collector is absent, the deed may be executed
95-by a deputy collector designated by the collector. WES MOORE, Governor Ch. 79
92+ (I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND 31
9693
97-– 3 –
94+ (II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE. 32
95+ HOUSE BILL 779 3
9896
99- (b) The deed shall be prepared by the holder of the certificate of sale or the
100-attorney for the holder of the certificate of sale and all expenses incident to the preparation
101-and execution of the deed shall be paid by the holder of the certificate of sale.
10297
103- (c) The clerk of the court in which the suit is instituted shall issue a certified copy
104-of the judgment of the court to the collector and supervisor and the collector is not obligated
105-to execute the deed provided for in this section until that certified copy of the judgment is
106-delivered to the collector.
98+14–847. 1
10799
108- (d) (1) If the holder of the certificate of sale does not comply with the terms of
109-the final judgment of the court within 90 days as to payments to the collector of the balance
110-of the purchase price due on account of the purchase price of the property and of all taxes,
111-interest, and penalties that accrue after the date of sale, that judgment may be stricken by
112-the court on the motion of an interested party for good cause shown.
100+ (a) (1) (I) Except as provided in paragraph (2) of this subsection, the 2
101+judgment of the court shall direct the collector to execute a deed to the holder of the 3
102+certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector 4
103+of the balance of the purchase price, due on account of the purchase price of the property, 5
104+together with all taxes and interest and penalties on the property that accrue after the date 6
105+of sale. 7
113106
114- (2) In Baltimore City, a certificate holder who has been enrolled as the
115-owner of the property under subsection (a) of this section is not an interested party within
116-the meaning of this subsection.
107+ (II) The judgment shall direct the supervisor to enroll the holder of 8
108+the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the 9
109+property. 10
117110
118- (3) IF THE HOLDER OF THE CERTIF ICATE OF SALE DOES N OT COMPLY
119-WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 90 105 DAYS AS
120-TO PAYMENTS TO THE C OLLECTOR OF THE BALA NCE OF THE PURCHASE PRICE DUE
121-ON ACCOUNT OF THE PU RCHASE PRICE OF THE PROPERTY AND OF ALL TAXES,
122-INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, AND NO
123-MOTION HAS BEEN FILE D UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COURT
124-MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR MUNICIPAL
125-CORPORATION IN WHICH THE PROPERTY IS LOCA TED, FOR GOOD CAUSE SHOWN ,
126-ENTER A JUDGMENT :
111+ (2) In Frederick County, if the collector is absent, the deed may be executed 11
112+by a deputy collector designated by the collector. 12
127113
128- (I) STRIKING THE FINAL J UDGMENT OF THE COURT ;
114+ (b) The deed shall be prepared by the holder of the certificate of sale or the 13
115+attorney for the holder of the certificate of sale and all expenses incident to the preparation 14
116+and execution of the deed shall be paid by the holder of the certificate of sale. 15
129117
130- (II) DIRECTING THE COLLEC TOR TO EXECUTE A DEE D
131-PREPARED BY THE GOVE RNING BODY OF THE CO UNTY OR MUNICIPAL CO RPORATION
132-IN FEE SIMPLE , ON PAYMENT TO THE CO LLECTOR OF THE BALANCE OF THE
133-PURCHASE PRICE DUE O N ACCOUNT OF THE PUR CHASE PRICE OF THE P ROPERTY
134-AND OF ALL TAXES , INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF
135-SALE; AND
118+ (c) The clerk of the court in which the suit is instituted shall issue a certified copy 16
119+of the judgment of the court to the collector and supervisor and the collector is not obligated 17
120+to execute the deed provided for in this section until that certified copy of the judgment is 18
121+delivered to the collector. 19
136122
137- (III) VESTING TITLE TO THE PROPERTY IN THE GOVE RNING BODY
138-OF THE COUNTY OR MUN ICIPAL CORPORATION IN FE E SIMPLE, FREE AND CLEAR OF
139-ALL ALIENATIONS AND DESCENTS OF THE PROP ERTY OCCURRING BEFOR E THE
140-DATE OF THE FINAL JU DGMENT AND ENCUMBRAN CES ON THE PROPERTY , EXCEPT
141-ANY TAXES THAT ACCRU E AFTER THE DATE OF SALE AND EASEMENTS O F RECORD Ch. 79 2023 LAWS OF MARYLAND
123+ (d) (1) If the holder of the certificate of sale does not comply with the terms of 20
124+the final judgment of the court within 90 days as to payments to the collector of the balance 21
125+of the purchase price due on account of the purchase price of the property and of all taxes, 22
126+interest, and penalties that accrue after the date of sale, that judgment may be stricken by 23
127+the court on the motion of an interested party for good cause shown. 24
142128
143-– 4 –
144-AND ANY OTHER EASEMENT TH AT MAY BE OBSERVED B Y AN INSPECTION OF T HE
145-PROPERTY TO WHICH TH E PROPERTY IS SUBJEC T.
129+ (2) In Baltimore City, a certificate holder who has been enrolled as the 25
130+owner of the property under subsection (a) of this section is not an interested party within 26
131+the meaning of this subsection. 27
146132
147- (4) IF A HOLDER OF A CERT IFICATE OF SALE SUBM ITS A DEED UNDER
148-SUBSECTION (B) OF THIS SECTION FOR THE PROPERTY TO THE GOVERNING BODY OF
149-THE COUNTY O R MUNICIPAL CORPORAT ION BEFORE A JUDGMEN T UNDER
150-PARAGRAPH (1) OR (3) OF THIS SUBSECTION I S ENTERED, THE MOTION UNDER
151-PARAGRAPH (1) OR (3) OF THIS SUBSECTION S HALL BE DENIED AS MO OT.
133+ (3) IF THE HOLDER OF THE CERTIFICATE OF SALE DOES NOT COMPLY 28
134+WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 90 105 DAYS AS 29
135+TO PAYMENTS TO THE C OLLECTOR OF THE BALA NCE OF THE PURCHASE PRICE DUE 30
136+ON ACCOUNT OF THE PU RCHASE PRICE OF THE PROPERTY AND OF ALL TAXES, 31
137+INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, AND NO 32
138+MOTION HAS BEEN FILE D UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COURT 33
139+MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR MUNICIPAL 34
140+CORPORATION IN WHICH THE PROPERTY IS LOCA TED, FOR GOOD CAUSE SHOWN , 35
141+ENTER A JUDGMENT : 36
152142
153- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
154-as follows:
143+ (I) STRIKING THE FINAL J UDGMENT OF THE COURT ; 37 4 HOUSE BILL 779
155144
156-Article – Tax – Property
157145
158-14–811.
159146
160- (c) Except as provided in subsection (d) of this section, the governing body of a
161-county or municipal corporation may withhold from sale property that:
147+ (II) DIRECTING THE COLLE CTOR TO EXECUTE A DE ED 1
148+PREPARED BY THE GOVE RNING BODY OF THE CO UNTY OR MUNICIPAL CO RPORATION 2
149+IN FEE SIMPLE , ON PAYMENT TO THE CO LLECTOR OF THE BALAN CE OF THE 3
150+PURCHASE PRICE DUE O N ACCOUNT OF THE PUR CHASE PRICE OF THE P ROPERTY 4
151+AND OF ALL TAXES , INTEREST, AND PENALTIES THAT ACC RUE AFTER THE DATE O F 5
152+SALE; AND 6
162153
163- (1) HAS A VACANT BUILDIN G OR STRUCTURE THAT THE COUNTY OR
164-MUNICIPAL CORPORATIO N INTENDS TO DEMOLIS H BECAUSE THE BUILDI NG OR
165-STRUCTURE IS UNSAFE OR UNFIT FOR HABITAT ION; OR
154+ (III) VESTING TITLE TO THE PROPERTY IN THE GOVE RNING BODY 7
155+OF THE COUNTY OR MUN ICIPAL CORPORATION I N FEE SIMPLE, FREE AND CLEAR OF 8
156+ALL ALIENATIONS AND DESCENTS OF THE PROP ERTY OCCURRING BEFOR E THE 9
157+DATE OF THE FINAL JUDGMEN T AND ENCUMBRANCES O N THE PROPERTY , EXCEPT 10
158+ANY TAXES THAT ACCRU E AFTER THE DATE OF SALE AND EASEMENTS O F RECORD 11
159+AND ANY OTHER EASEME NT THAT MAY BE OBSER VED BY AN INSPECTION OF THE 12
160+PROPERTY TO WHICH TH E PROPERTY IS SUBJEC T. 13
166161
167- (2) has been designated for redevelopment purposes if:
162+ (4) IF A HOLDER OF A CERTIFIC ATE OF SALE SUBMITS A DEED UNDER 14
163+SUBSECTION (B) OF THIS SECTION FOR THE PROPERTY TO THE GOVERNING BODY OF 15
164+THE COUNTY OR MUNICI PAL CORPORATION BEFO RE A JUDGMENT UNDER 16
165+PARAGRAPH (1) OR (3) OF THIS SUBSECTION I S ENTERED, THE MOTION UNDER 17
166+PARAGRAPH (1) OR (3) OF THIS SUBSECTION S HALL BE DENIED AS MO OT. 18
168167
169- [(1)] (I) the county or municipal corporation certifies that the property:
168+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
169+as follows: 20
170170
171- [(i)] 1. is a vacant lot; or
171+Article – Tax – Property 21
172172
173- [(ii)] 2. has a building or structure that is:
173+14–811. 22
174174
175- [1.] A. vacant; and
175+ (c) Except as provided in subsection (d) of this section, the governing body of a 23
176+county or municipal corporation may withhold from sale property that: 24
176177
177- [2.] B. unsafe or unfit for habitation;
178+ (1) HAS A VACANT BUILDIN G OR STRUCTURE THAT THE COUNTY OR 25
179+MUNICIPAL CORPORATIO N INTENDS TO DEMOLIS H BECAUSE THE BUILDI NG OR 26
180+STRUCTURE IS UNSAFE OR UNFIT FOR HABITAT ION; OR 27
178181
179- [(2)] (II) the governing body of the county or municipal corporation finds
180-that withholding the property from sale under this subsection is necessary:
182+ (2) has been designated for redevelopment purposes if: 28
181183
182- [(i)] 1. to eliminate a blighting influence; and
184+ [(1)] (I) the county or municipal corporation certifies that the property: 29
183185
184- [(ii)] 2. to prevent the tax abandonment of the property; and
185- WES MOORE, Governor Ch. 79
186+ [(i)] 1. is a vacant lot; or 30
186187
187-– 5 –
188- [(3)] (III) the property meets any additional objective criteria established
189-by the governing body of the county or municipal corporation for withholding property from
190-sale for redevelopment purposes.
188+ [(ii)] 2. has a building or structure that is: 31
191189
192-14–820.1.
190+ [1.] A. vacant; and 32 HOUSE BILL 779 5
193191
194- THE COLLECTOR SHALL D ELIVER A CERTIFICATE OF SALE TO THE
195-GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION FOR EACH PROPERTY
196-WITHHELD FROM SALE B Y THE GOVERNING BODY OF THE COUNTY OR MUN ICIPAL
197-CORPORATION UNDER § 14–811(C) OF THIS SUBTITLE.
198192
199- SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be
200-construed to apply retroactively and shall be applied to and interpreted to affect tax sale
201-actions foreclosing the right of redemption in properties that are pending on enactment of
202-this Act.
203193
204- SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June
205-1, 2023.
194+ [2.] B. unsafe or unfit for habitation; 1
206195
207-Approved by the Governor, April 11, 2023.
196+ [(2)] (II) the governing body of the county or municipal corporation finds 2
197+that withholding the property from sale under this subsection is necessary: 3
198+
199+ [(i)] 1. to eliminate a blighting influence; and 4
200+
201+ [(ii)] 2. to prevent the tax abandonment of the property; and 5
202+
203+ [(3)] (III) the property meets any additional objective criteria established 6
204+by the governing body of the county or municipal corporation for withholding property from 7
205+sale for redevelopment purposes. 8
206+
207+14–820.1. 9
208+
209+ THE COLLECTOR SHALL D ELIVER A CERTIFICATE OF SALE TO THE 10
210+GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION FOR EACH PROPERTY 11
211+WITHHELD FROM SALE B Y THE GOVERNING BODY OF THE COUNTY OR MUN ICIPAL 12
212+CORPORATION UNDER § 14–811(C) OF THIS SUBTITLE. 13
213+
214+ SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 14
215+construed to apply retroactively and shall be applied to and interpreted to affect tax sale 15
216+actions foreclosing the right of redemption in properties that are pending on enactment of 16
217+this Act. 17
218+
219+ SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
220+1, 2023. 19
221+
222+
223+
224+
225+Approved:
226+________________________________________________________________________________
227+ Governor.
228+________________________________________________________________________________
229+ Speaker of the House of Delegates.
230+________________________________________________________________________________
231+ President of the Senate.