Maryland 2023 Regular Session

Maryland House Bill HB83 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 273
2	1
3		-	– 1 –
4		-	Chapter 273
5		-	(House Bill 83)
6	2
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	+	hb0083
8	9
9		-	Property Tax – Tax Sales – Redemption
	10	+	HOUSE BILL 83
	11	+	Q2, Q1 3lr0864
	12	+	(PRE–FILED)
	13	+	By: Delegate Atterbeary
	14	+	Requested: November 17, 2022
	15	+	Introduced and read first time: January 11, 2023
	16	+	Assigned to: Ways and Means
	17	+	Committee Report: Favorable with amendments
	18	+	House action: Adopted
	19	+	Read second time: February 14, 2023
10	20
11		-	FOR the purpose of requiring a tax collector to make certain attempts to contact a certain
12		-	plaintiff or holder of a certificate of sale regarding certain expenses; authorizing a
13		-	collector to redeem certain property without a certain satisfaction letter if a plaintiff
14		-	or holder of a certificate of sale fails to respond within a certain number of days after
15		-	certain attempts by the collector to make contact; and generally relating to tax sales
16		-	of property.
	21	+	CHAPTER ______
17	22
18		-	BY repealing and reenacting, with amendments,
19		-	Article – Tax – Property
20		-	Section 14–843(a)
21		-	Annotated Code of Maryland
22		-	(2019 Replacement Volume and 2022 Supplement)
	23	+	AN ACT concerning 1
23	24
24		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
25		-	That the Laws of Maryland read as follows:
	25	+	Property Tax – Tax Sales – Redemption 2
26	26
27		-	Article – Tax – Property
	27	+	FOR the purpose of requiring a tax collector to make certain attempts to contact a certain 3
	28	+	plaintiff or holder of a certificate of sale regarding certain expenses; authorizing a 4
	29	+	collector to redeem certain property without a certain satisfaction letter if a plaintiff 5
	30	+	or holder of a certificate of sale fails to respond within a certain number of days after 6
	31	+	certain attempts by the collector to make contact; and generally relating to tax sales 7
	32	+	of property. 8
28	33
29		-	14–843.
	34	+	BY repealing and reenacting, with amendments, 9
	35	+	Article – Tax – Property 10
	36	+	Section 14–843(a) 11
	37	+	Annotated Code of Maryland 12
	38	+	(2019 Replacement Volume and 2022 Supplement) 13
30	39
31		-	(a) (1) Except as provided in subsection (b) of this section, on redemption, the
32		-	plaintiff or the holder of a certificate of sale may be reimbursed for expenses incurred in
33		-	any action or in preparation for any action to foreclose the right of redemption as provided
34		-	in this section.
	40	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
	41	+	That the Laws of Maryland read as follows: 15
35	42
36		-	(2) The plaintiff or holder of a certificate of sale is not entitled to be
37		-	reimbursed for any other expenses or attorney’s fees that are not included in this section.
	43	+	Article – Tax – Property 16
38	44
39		-	(3) (I) AFTER AN OWNER OF PRO PERTY SOLD AT TAX SA LE
40		-	INFORMS THE COLLECTOR THAT THE PLAINTIFF O R HOLDER OF A CERTIF ICATE OF
41		-	SALE HAS FAILED TO R ESPOND TO A REQUEST FOR THE AMOUNT OF EX PENSES
42		-	INCLUDED IN THE REDE MPTION AMOUNT AUTHOR IZED UNDER THIS SECT ION, THE
43		-	THE COLLECTOR SHALL MAKE AT LEAST ONE ATTEMPT BY PHONE AND E–MAIL TO
44		-	CONTACT THE A HOLDER OF THE A CERTIFICATE OF SALE AFTER THE COLLECTOR
45		-	IS INFORMED THAT THE PLAINTIFF OR THE HOL DER OF THE CERTIFICA TE OF SALE
46		-	HAS FAILED TO RESPON D TO A REQUEST FOR T HE AMOUNT OF EXPENSE S INCLUDED
47		-	IN THE REDEMPTION AM OUNT AUTHORIZED UNDER THI S SECTION THAT IS MA DE BY
48		-	THE: Ch. 273 2023 LAWS OF MARYLAND
	45	+	14–843. 17
49	46
50		-	– 2 –
	47	+	(a) (1) Except as provided in subsection (b) of this section, on redemption, the 18
	48	+	plaintiff or the holder of a certificate of sale may be reimbursed for expenses incurred in 19 2 HOUSE BILL 83
51	49
52		-	1. OWNER OF THE PROPERT Y;
53	50
54		-	2. ~~CURRENT MORTGAGEE~~ OF ~~THE PROPERTY , ASSIGNEE~~
55		-	~~OF A MORTGAGEE OF RE CORD, OR SERVICER OF THE C URRENT MORTGAGE ; OR~~
	51	+	any action or in preparation for any action to foreclose the right of redemption as provided 1
	52	+	in this section. 2
56	53
57		-	~~3. CURRENT~~ HOLDER OF A ~~BENEFICIAL INTEREST IN A~~
58		-	~~DEED OF TRUST RECORD ED AGAINST THE PROPE RTY~~.
	54	+	(2) The plaintiff or holder of a certificate of sale is not entitled to be 3
	55	+	reimbursed for any other expenses or attorney’s fees that are not included in this section. 4
59	56
60		-	(II) IF THE PLAINTIFF OR H OLDER OF THE CERTIFI CATE OF
61		-	SALE FAILS TO RESPON D WITHIN 5 BUSINESS DAYS AFTER THE COLLECTOR ’S
62		-	ATTEMPTS TO MAKE CON TACT IN ACCORDANCE W ITH SUBPARAGRAPH (I) OF THIS
63		-	PARAGRAPH , THE CO LLECTOR MAY REDEEM T HE PROPERTY WITHOUT A
64		-	SATISFACTION LETTER STATING THAT THE EXP ENSES OF THE PLAINTI FF OR THE
65		-	HOLDER OF A CERTIFIC ATE OF SALE HAVE BEE N PAID.
	57	+	(3) (I) AFTER AN OWNER OF PRO PERTY SOLD AT TAX SA LE 5
	58	+	INFORMS THE COLLECTO R THAT THE PLAINTIFF OR HOLDER OF A CERTI FICATE OF 6
	59	+	SALE HAS FAILED TO R ESPOND TO A REQUEST FOR THE AMOUNT OF EX PENSES 7
	60	+	INCLUDED IN THE REDE MPTION AMOUNT AUTHOR IZED UNDER THIS SECT ION, THE 8
	61	+	THE COLLECTOR SHALL MAKE AT LEAST ONE ATTEMPT BY PHONE AND E–MAIL TO 9
	62	+	CONTACT THE A HOLDER OF THE A CERTIFICATE OF SALE AFTER THE COLLECTOR 10
	63	+	IS INFORMED THAT THE PLAINTIFF OR THE HOL DER OF THE CERTIFICA TE OF SALE 11
	64	+	HAS FAILED TO RESPON D TO A REQUEST FOR T HE AMOUNT OF EXPENSE S INCLUDED 12
	65	+	IN THE REDEMPTION AM OUNT AUTHORIZED UNDER T HIS SECTION THAT IS MADE BY 13
	66	+	THE: 14
66	67
67		-	(4) (i) Except as provided in subparagraph (ii) of this paragraph, if an
68		-	action to foreclose the right of redemption has not been filed, and the property is redeemed
69		-	more than 4 months after the date of the tax sale, the holder of a certificate of sale may be
70		-	reimbursed for the following expenses actually incurred:
	68	+	1. OWNER OF THE PROPERT Y; 15
71	69
72		-	1. costs for recording the certificate of sale;
	70	+	2. CURRENT MORTGAGEE OF THE PROPERTY , ASSIGNEE 16
	71	+	OF A MORTGAGEE OF RE CORD, OR SERVICER OF THE C URRENT MORTGAGE ; OR 17
73	72
74		-	2. a title search fee, not to exceed $250;
	73	+	3. CURRENT HOLDER OF A BENEFICIAL INTEREST IN A 18
	74	+	DEED OF TRUST RECORD ED AGAINST THE PROPE RTY. 19
75	75
76		-	3. the postage and certified mailing costs for the notices
77		-	required under § 14–833(a–1) of this subtitle; and
	76	+	(II) IF THE PLAINTIFF OR H OLDER OF THE CERTIFI CATE OF 20
	77	+	SALE FAILS TO RESPON D WITHIN 5 BUSINESS DAYS AFTER THE COLLECTOR ’S 21
	78	+	ATTEMPTS TO MAKE CON TACT IN ACCORDANCE W ITH SUBPARAGRAPH (I) OF THIS 22
	79	+	PARAGRAPH , THE CO LLECTOR MAY REDEEM T HE PROPERTY WITHOUT A 23
	80	+	SATISFACTION LETTER STATING THAT THE EXP ENSES OF THE PLAINTI FF OR THE 24
	81	+	HOLDER OF A CERTIFIC ATE OF SALE HAVE BEE N PAID. 25
78	82
79		-	4. reasonable attorney’s fees, not to exceed $500.
	83	+	(4) (i) Except as provided in subparagraph (ii) of this paragraph, if an 26
	84	+	action to foreclose the right of redemption has not been filed, and the property is redeemed 27
	85	+	more than 4 months after the date of the tax sale, the holder of a certificate of sale may be 28
	86	+	reimbursed for the following expenses actually incurred: 29
80	87
81		-	(ii) In Baltimore City, for owner–occupied residential property, if an
82		-	action to foreclose the right of redemption has not been filed, and the property is redeemed
83		-	more than 7 months after the date of the tax sale, the holder of a certificate of sale may be
84		-	reimbursed for the following expenses actually incurred:
	88	+	1. costs for recording the certificate of sale; 30
85	89
86		-	1. ~~costs for recording the certificate of sale~~;
	90	+	2. a title search fee, not to exceed $250; 31
87	91
88		-	2. a title search fee, not to exceed $250;
	92	+	3. the postage and certified mailing costs for the notices 32
	93	+	required under § 14–833(a–1) of this subtitle; and 33
89	94
90		-	3. the postage and certified mailing costs for the notices
91		-	required under § 14–833(a–1) of this subtitle; and
	95	+	4. reasonable attorney’s fees, not to exceed $500. 34 HOUSE BILL 83 3
92	96
93		-	4. reasonable attorney’s fees, not to exceed $500.
94		-	WES MOORE, Governor Ch. 273
95	97
96		-	– 3 –
97		-	[(4)] (5) If an action to foreclose the right of redemption has been filed,
98		-	the plaintiff or holder of a certificate of sale may be reimbursed for:
99	98
100		-	(i) attorney’s fees in the amount of:
	99	+	(ii) In Baltimore City, for owner–occupied residential property, if an 1
	100	+	action to foreclose the right of redemption has not been filed, and the property is redeemed 2
	101	+	more than 7 months after the date of the tax sale, the holder of a certificate of sale may be 3
	102	+	reimbursed for the following expenses actually incurred: 4
101	103
102		-	1. $1,300 if an affidavit of compliance has not been filed,
103		-	which amount shall be deemed reasonable for both the preparation and filing of the action
104		-	to foreclose the right of redemption; or
	104	+	1. costs for recording the certificate of sale; 5
105	105
106		-	2. $1,500 if an affidavit of compliance has been filed, which
107		-	amount shall be deemed reasonable for both the preparation and filing of the action to
108		-	foreclose the right of redemption;
	106	+	2. a title search fee, not to exceed $250; 6
109	107
110		-	(ii) reasonable attorney’s fees, not to exceed $1,200, incurred by the
111		-	plaintiff or holder of a certificate of sale for opening an estate for purposes of service of
112		-	process and notice on a defendant’s estate;
	108	+	3. the postage and certified mailing costs for the notices 7
	109	+	required under § 14–833(a–1) of this subtitle; and 8
113	110
114		-	(iii) in exceptional circumstances, other reasonable attorney’s fees
115		-	incurred and specifically requested by the plaintiff or holder of a certificate of sale and
116		-	approved by the court, on a case by case basis; and
	111	+	4. reasonable attorney’s fees, not to exceed $500. 9
117	112
118		-	(iv) if the plaintiff or holder of a certificate of sale provides a signed
119		-	affidavit attesting to the fact that the expenses were actually incurred, the following
120		-	expenses actually incurred by the plaintiff or holder of a certificate of sale:
	113	+	[(4)] (5) If an action to foreclose the right of redemption has been filed, 10
	114	+	the plaintiff or holder of a certificate of sale may be reimbursed for: 11
121	115
122		-	1. filing fee charged by the circuit court for the county in
123		-	which the property is located;
	116	+	(i) attorney’s fees in the amount of: 12
124	117
125		-	2. service of process fee, including fees incurred attempting
126		-	to serve process;
	118	+	1. $1,300 if an affidavit of compliance has not been filed, 13
	119	+	which amount shall be deemed reasonable for both the preparation and filing of the action 14
	120	+	to foreclose the right of redemption; or 15
127	121
128		-	3. a title search fee, not to exceed $250;
	122	+	2. $1,500 if an affidavit of compliance has been filed, which 16
	123	+	amount shall be deemed reasonable for both the preparation and filing of the action to 17
	124	+	foreclose the right of redemption; 18
129	125
130		-	4. if a second title search is conducted more than 6 months
131		-	after the initial title search, a title search update fee, not to exceed $75;
	126	+	(ii) reasonable attorney’s fees, not to exceed $1,200, incurred by the 19
	127	+	plaintiff or holder of a certificate of sale for opening an estate for purposes of service of 20
	128	+	process and notice on a defendant’s estate; 21
132	129
133		-	5. publication fee charged by a newspaper of general
134		-	circulation in the county in which the property is located;
	130	+	(iii) in exceptional circumstances, other reasonable attorney’s fees 22
	131	+	incurred and specifically requested by the plaintiff or holder of a certificate of sale and 23
	132	+	approved by the court, on a case by case basis; and 24
135	133
136		-	6. posting fee;
	134	+	(iv) if the plaintiff or holder of a certificate of sale provides a signed 25
	135	+	affidavit attesting to the fact that the expenses were actually incurred, the following 26
	136	+	expenses actually incurred by the plaintiff or holder of a certificate of sale: 27
137	137
138		-	7. postage and certified mail;
	138	+	1. filing fee charged by the circuit court for the county in 28
	139	+	which the property is located; 29
139	140
140		-	8. substantial repair order fee, not to exceed the fee charged
141		-	by the government agency issuing the certificate of substantial repair;
142		-	Ch. 273 2023 LAWS OF MARYLAND
	141	+	2. service of process fee, including fees incurred attempting 30
	142	+	to serve process; 31
143	143
144		-	– 4 –
145		-	9. expenses and costs incurred for opening an estate of a
146		-	deceased defendant for purposes of service of process and notice, not to exceed $1,200; and
	144	+	3. a title search fee, not to exceed $250; 32 4 HOUSE BILL 83
147	145
148		-	10. any court approved expense for stabilization or conversion
149		-	of the property under § 14–830 of this subtitle or in accordance with an action taken against
150		-	the property by the county in which the property is located in accordance with the
151		-	applicable building, fire, health, or safety codes.
152	146
153		-	[(5)] (6) In addition to the expenses and attorney’s fees under paragraph
154		-	[(3) or] (4) OR (5) of this subsection, the plaintiff or holder of a certificate of sale may be
155		-	reimbursed for:
156	147
157		-	~~(i) taxes paid at the tax sale,~~ ~~together with redemption interest,~~
158		-	~~arising~~ after the ~~date of sale~~ to ~~the date of redemption~~;
	148	+	4. if a second title search is conducted more than 6 months 1
	149	+	after the initial title search, a title search update fee, not to exceed $75; 2
159	150
160		-	(ii) the high bid premium paid at the tax sale, if applicable; and
	151	+	5. publication fee charged by a newspaper of general 3
	152	+	circulation in the county in which the property is located; 4
161	153
162		-	(iii) in Baltimore City only, taxes, interest, and penalties paid in
163		-	accordance with subsection (c) of this section and interest at the rate of redemption
164		-	provided in § 14–820 of this subtitle from the date of payment to the date of redemption.
	154	+	6. posting fee; 5
165	155
166		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
167		-	October 1, 2023.
	156	+	7. postage and certified mail; 6
168	157
169		-	Approved by the Governor, May 3, 2023.
	158	+	8. substantial repair order fee, not to exceed the fee charged 7
	159	+	by the government agency issuing the certificate of substantial repair; 8
	160	+
	161	+	9. expenses and costs incurred for opening an estate of a 9
	162	+	deceased defendant for purposes of service of process and notice, not to exceed $1,200; and 10
	163	+
	164	+	10. any court approved expense for stabilization or conversion 11
	165	+	of the property under § 14–830 of this subtitle or in accordance with an action taken against 12
	166	+	the property by the county in which the property is located in accordance with the 13
	167	+	applicable building, fire, health, or safety codes. 14
	168	+
	169	+	[(5)] (6) In addition to the expenses and attorney’s fees under paragraph 15
	170	+	[(3) or] (4) OR (5) of this subsection, the plaintiff or holder of a certificate of sale may be 16
	171	+	reimbursed for: 17
	172	+
	173	+	(i) taxes paid at the tax sale, together with redemption interest, 18
	174	+	arising after the date of sale to the date of redemption; 19
	175	+
	176	+	(ii) the high bid premium paid at the tax sale, if applicable; and 20
	177	+
	178	+	(iii) in Baltimore City only, taxes, interest, and penalties paid in 21
	179	+	accordance with subsection (c) of this section and interest at the rate of redemption 22
	180	+	provided in § 14–820 of this subtitle from the date of payment to the date of redemption. 23
	181	+
	182	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
	183	+	October 1, 2023. 25
	184	+