WES MOORE, Governor Ch. 79
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Chapter 79
(House Bill 779)
AN ACT concerning
Tax Sales – Revisions
FOR the purpose of authorizing the governing body of a county or municipal corporation to
file a motion with a court to request that a certain certificate of sale be assigned to
the governing body of the county or municipal corporation in a certain foreclosure
action under certain circumstances; providing that, on a grant of the motion by the
court, the holder of the certificate of sale forfeits certain rights and the amount paid
to acquire the certificate of sale; authorizing a court, under certain circumstances, to
strike the final judgment in a tax sale action foreclosing the right of redemption in a
property and grant the governing body of a county or municipal corporation the right
to pay the balance of the purchase price due on the property; requiring a court to
direct a tax collector to execute a deed to the governing body of a county or municipal
corporation on payment by the governing body of the purchase price due on the
property; requiring the governing body of a county or municipal corporation to take
title to the property in a certain manner; authorizing a county or municipal
corporation to withhold a property from tax sale if the county or municipal
corporation intends to demolish a vacant and blighted building or structure on the
property; requiring the collector of taxes to deliver a certificate of sale to the
governing body of a county or municipal corporation for each property withheld from
sale by the county or municipal corporation under certain provisions of law; applying
certain provisions of this Act retroactively; and generally relating to tax sales.
BY adding to
Article – Tax – Property
Section 14–820.1 and 14–821(c)
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 14–811(c) and 14–847
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – Property
14–821.
Ch. 79 2023 LAWS OF MARYLAND
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(C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L
CORPORATION MAY FILE A MOTION WI TH THE COURT REQUEST ING THAT A
CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR
MUNICIPAL CORPORATIO N IF:
(I) A FORECLOSURE ACTION HAS BEEN INITIATED B Y THE
HOLDER OF THE CERTIF ICATE OF SALE IN ACC ORDANCE WITH THIS SU BTITLE; AND
(II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR
A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A MOTION FOR THE
ENTRY OF A FINAL ORD ER HAS NOT BEEN FILE D IN THE FORECLOSURE ACTION
WITHIN 18 MONTHS AFTER THE FIL ING OF THE COMPLAINT , WHICHEVER IS
EARLIER.
(2) ON THE FILING OF A MO TION UNDER THIS SUBS ECTION, THE
COURT SHALL DIRECT T HE HOLDER OF THE CER TIFICATE OF SALE TO SHOW GOOD
CAUSE AS TO WHY THE COURT SHOULD NOT GRA NT THE MOTION .
(3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND
TO THE MOTION IN ACC ORDANCE WITH THE MARYLAND RULES, THE COURT SHALL
GRANT THE MOTION .
(4) IF A COURT GRANTS A M OTION UNDER THIS SUB SECTION, THE
HOLDER OF THE CERTIF ICATE OF SALE SHALL FORFEIT:
(I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND
(II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE.
14–847.
(a) (1) (I) Except as provided in paragraph (2) of this subsection, the
judgment of the court shall direct the collector to execute a deed to the holder of the
certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector
of the balance of the purchase price, due on account of the purchase price of the property,
together with all taxes and interest and penalties on the property that accrue after the date
of sale.
(II) The judgment shall direct the supervisor to enroll the holder of
the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the
property.
(2) In Frederick County, if the collector is absent, the deed may be executed
by a deputy collector designated by the collector. WES MOORE, Governor Ch. 79
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(b) The deed shall be prepared by the holder of the certificate of sale or the
attorney for the holder of the certificate of sale and all expenses incident to the preparation
and execution of the deed shall be paid by the holder of the certificate of sale.
(c) The clerk of the court in which the suit is instituted shall issue a certified copy
of the judgment of the court to the collector and supervisor and the collector is not obligated
to execute the deed provided for in this section until that certified copy of the judgment is
delivered to the collector.
(d) (1) If the holder of the certificate of sale does not comply with the terms of
the final judgment of the court within 90 days as to payments to the collector of the balance
of the purchase price due on account of the purchase price of the property and of all taxes,
interest, and penalties that accrue after the date of sale, that judgment may be stricken by
the court on the motion of an interested party for good cause shown.
(2) In Baltimore City, a certificate holder who has been enrolled as the
owner of the property under subsection (a) of this section is not an interested party within
the meaning of this subsection.
(3) IF THE HOLDER OF THE CERTIF ICATE OF SALE DOES N OT COMPLY
WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 90 105 DAYS AS
TO PAYMENTS TO THE C OLLECTOR OF THE BALA NCE OF THE PURCHASE PRICE DUE
ON ACCOUNT OF THE PU RCHASE PRICE OF THE PROPERTY AND OF ALL TAXES,
INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, AND NO
MOTION HAS BEEN FILE D UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COURT
MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR MUNICIPAL
CORPORATION IN WHICH THE PROPERTY IS LOCA TED, FOR GOOD CAUSE SHOWN ,
ENTER A JUDGMENT :
(I) STRIKING THE FINAL J UDGMENT OF THE COURT ;
(II) DIRECTING THE COLLEC TOR TO EXECUTE A DEE D
PREPARED BY THE GOVE RNING BODY OF THE CO UNTY OR MUNICIPAL CO RPORATION
IN FEE SIMPLE , ON PAYMENT TO THE CO LLECTOR OF THE BALANCE OF THE
PURCHASE PRICE DUE O N ACCOUNT OF THE PUR CHASE PRICE OF THE P ROPERTY
AND OF ALL TAXES , INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF
SALE; AND
(III) VESTING TITLE TO THE PROPERTY IN THE GOVE RNING BODY
OF THE COUNTY OR MUN ICIPAL CORPORATION IN FE E SIMPLE, FREE AND CLEAR OF
ALL ALIENATIONS AND DESCENTS OF THE PROP ERTY OCCURRING BEFOR E THE
DATE OF THE FINAL JU DGMENT AND ENCUMBRAN CES ON THE PROPERTY , EXCEPT
ANY TAXES THAT ACCRU E AFTER THE DATE OF SALE AND EASEMENTS O F RECORD Ch. 79 2023 LAWS OF MARYLAND
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AND ANY OTHER EASEMENT TH AT MAY BE OBSERVED B Y AN INSPECTION OF T HE
PROPERTY TO WHICH TH E PROPERTY IS SUBJEC T.
(4) IF A HOLDER OF A CERT IFICATE OF SALE SUBM ITS A DEED UNDER
SUBSECTION (B) OF THIS SECTION FOR THE PROPERTY TO THE GOVERNING BODY OF
THE COUNTY O R MUNICIPAL CORPORAT ION BEFORE A JUDGMEN T UNDER
PARAGRAPH (1) OR (3) OF THIS SUBSECTION I S ENTERED, THE MOTION UNDER
PARAGRAPH (1) OR (3) OF THIS SUBSECTION S HALL BE DENIED AS MO OT.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – Property
14–811.
(c) Except as provided in subsection (d) of this section, the governing body of a
county or municipal corporation may withhold from sale property that:
(1) HAS A VACANT BUILDIN G OR STRUCTURE THAT THE COUNTY OR
MUNICIPAL CORPORATIO N INTENDS TO DEMOLIS H BECAUSE THE BUILDI NG OR
STRUCTURE IS UNSAFE OR UNFIT FOR HABITAT ION; OR
(2) has been designated for redevelopment purposes if:
[(1)] (I) the county or municipal corporation certifies that the property:
[(i)] 1. is a vacant lot; or
[(ii)] 2. has a building or structure that is:
[1.] A. vacant; and
[2.] B. unsafe or unfit for habitation;
[(2)] (II) the governing body of the county or municipal corporation finds
that withholding the property from sale under this subsection is necessary:
[(i)] 1. to eliminate a blighting influence; and
[(ii)] 2. to prevent the tax abandonment of the property; and
WES MOORE, Governor Ch. 79
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[(3)] (III) the property meets any additional objective criteria established
by the governing body of the county or municipal corporation for withholding property from
sale for redevelopment purposes.
14–820.1.
THE COLLECTOR SHALL D ELIVER A CERTIFICATE OF SALE TO THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION FOR EACH PROPERTY
WITHHELD FROM SALE B Y THE GOVERNING BODY OF THE COUNTY OR MUN ICIPAL
CORPORATION UNDER § 14–811(C) OF THIS SUBTITLE.
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be
construed to apply retroactively and shall be applied to and interpreted to affect tax sale
actions foreclosing the right of redemption in properties that are pending on enactment of
this Act.
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2023.
Approved by the Governor, April 11, 2023.