21 | 15 | | |
---|
22 | 16 | | AN ACT concerning 1 |
---|
23 | 17 | | |
---|
24 | 18 | | Baltimore City – Collection of Unpaid Property Taxes 2 |
---|
25 | 19 | | |
---|
26 | 20 | | FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish 3 |
---|
27 | 21 | | an installment payment program for taxes in arrears on residential property; 4 |
---|
28 | 22 | | authorizing the Mayor of Baltimore City to cancel the annual tax sale; authorizing 5 |
---|
29 | 23 | | the Mayor and City Council of Baltimore City to establish a program to divert 6 |
---|
30 | 24 | | residential property from the private tax lien sale process into an alternative 7 |
---|
31 | 25 | | program for the payment of taxes in arrears; authorizing the collector of taxes in 8 |
---|
32 | 26 | | Baltimore City to withhold any residential property from tax sale; authorizing 9 |
---|
33 | 27 | | Baltimore City to conduct a judicial in rem foreclosure and sale of residential 10 |
---|
34 | 28 | | property on which the taxes are in arrears under certain circumstances; establishing 11 |
---|
35 | 29 | | procedures for an in rem foreclosure and sale; and generally relating to the collection 12 |
---|
36 | 30 | | of unpaid property taxes in Baltimore City. 13 |
---|
37 | 31 | | |
---|
38 | 32 | | BY adding to 14 |
---|
39 | 33 | | Article – Tax – Property 15 |
---|
40 | 34 | | Section 10–209 and 14–811(b)(4); and 14–894 to be under the new part “Part VIII. 16 |
---|
41 | 35 | | Baltimore City Judicial In Rem Tax Foreclosure for Residential Property” 17 |
---|
42 | 36 | | Annotated Code of Maryland 18 |
---|
43 | 37 | | (2019 Replacement Volume and 2022 Supplement) 19 |
---|
44 | 38 | | |
---|
45 | 39 | | BY repealing and reenacting, without amendments, 20 |
---|
46 | 40 | | Article – Tax – Property 21 |
---|
47 | 41 | | Section 14–801(d) 22 |
---|
66 | | - | (A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, BY LAW, 11 |
---|
67 | | - | ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN ARREARS ON ANY 12 |
---|
68 | | - | RESIDENTIAL PROPERTY IN WHICH AN Y PERSON WITH AN INT EREST IN THE 13 |
---|
69 | | - | PROPERTY MAY ENROLL , INCLUDING A LESSEE O R A PERSON WHO STAND S TO 14 |
---|
70 | | - | INHERIT THE PROPERTY F ROM THE PERSON WHO L AST APPEARS AS OWNER OF THE 15 |
---|
71 | | - | PROPERTY ON THE COLL ECTOR’S TAX ROLL. 16 |
---|
| 67 | + | (B) ANY FEE OR CHARGE OF ANY KIND THAT IS INCLUDED ON A BALTIMORE 12 |
---|
| 68 | + | CITY PROPERTY TAX BILL MAY BE PAID THROUGH THE INSTALLMENT PAYMENT 13 |
---|
| 69 | + | PROGRAM AUTHORIZED UNDER SUBSECTION (A) OF THIS SUBSECTION . 14 |
---|
91 | | - | (D) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY ESTABLISH AN 29 |
---|
92 | | - | INSTALLMENT PAYMENT PROGRAM UNDE R SUBSECTION (A) OF THIS SECTION , 30 |
---|
93 | | - | BALTIMORE CITY SHALL ARRANGE FO R THE PAYMENT TO THE STATE OF ANY STATE 31 |
---|
94 | | - | PROPERTY TAXES IN AR REARS ON A PROPERTY ENROLLED IN THE PROG RAM. 32 HOUSE BILL 867 3 |
---|
| 90 | + | 14–801. 28 |
---|
| 91 | + | |
---|
| 92 | + | (d) (1) “Tax” means any tax, or charge of any kind due to the State or any of 29 |
---|
| 93 | + | its political subdivisions, or to any other taxing agency, that by law is a lien against the 30 |
---|
| 94 | + | real property on which it is imposed or assessed. 31 HOUSE BILL 867 3 |
---|
104 | | - | (2) “Tax” includes interest, penalties, and service charges. 5 |
---|
| 102 | + | (a) (1) Except for property that has been transferred by a municipality or 3 |
---|
| 103 | + | county to a land bank authority established under § 1–1403 of the Local Government 4 |
---|
| 104 | + | Article, and except as provided [under] IN PARAGRAPH (3) OF THIS SUBSECTION O R § 5 |
---|
| 105 | + | 14–811 of this subtitle, the collector shall proceed to sell and shall sell under this subtitle, 6 |
---|
| 106 | + | at the time required by local law but in no case, except in Baltimore City, later than 2 years 7 |
---|
| 107 | + | from the date the tax is in arrears, all property in the county in which the collector is elected 8 |
---|
| 108 | + | or appointed on which the tax is in arrears. 9 |
---|
108 | | - | (a) (1) Except for property that has been transferred by a municipality or 7 |
---|
109 | | - | county to a land bank authority established under § 1–1403 of the Local Government 8 |
---|
110 | | - | Article, and except as provided [under] IN PARAGRAPH (3) OF THIS SUBSECTION O R § 9 |
---|
111 | | - | 14–811 of this subtitle, the collector shall proceed to sell and shall sell under this subtitle, 10 |
---|
112 | | - | at the time required by local law but in no case, except in Baltimore City, later than 2 years 11 |
---|
113 | | - | from the date the tax is in arrears, all property in the county in which the collector is elected 12 |
---|
114 | | - | or appointed on which the tax is in arrears. 13 |
---|
| 114 | + | (3) (I) THE MAYOR OF BALTIMORE CITY MAY CANCEL THE 13 |
---|
| 115 | + | ANNUAL TAX SALE. 14 |
---|
116 | | - | (2) The collector is required to sell, but failure of the collector to sell within 14 |
---|
117 | | - | the 2–year period does not affect the validity or collectability of any tax, or the validity of 15 |
---|
118 | | - | any sale thereafter made. 16 |
---|
| 117 | + | (II) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, 15 |
---|
| 118 | + | BY LAW, ESTABLISH A PROGRAM TO DIVERT RESIDENTIA L PROPERTY FROM THE 16 |
---|
| 119 | + | PRIVATE TAX LIEN SAL E PROCESS INTO AN AL TERNATIVE PROGRAM FOR THE 17 |
---|
| 120 | + | COLLECTION OF TAXES IN ARREARS THAT MAY INCLUDE: 18 |
---|
143 | | - | |
---|
144 | | - | (b) (4) IN BALTIMORE CITY, THE COLLECTOR MAY WI THHOLD FROM 1 |
---|
145 | | - | SALE ANY RESIDENTIAL PROPERTY. 2 |
---|
146 | | - | |
---|
147 | | - | 14–892. RESERVED. 3 |
---|
148 | | - | |
---|
149 | | - | 14–893. RESERVED. 4 |
---|
150 | | - | |
---|
151 | | - | PART VIII. BALTIMORE CITY JUDICIAL IN REM TAX FORECLOSURE FOR 5 |
---|
152 | | - | RESIDENTIAL PROPERTY. 6 |
---|
153 | | - | |
---|
154 | | - | 14–894. 7 |
---|
155 | | - | |
---|
156 | | - | (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8 |
---|
157 | | - | INDICATED. 9 |
---|
158 | | - | |
---|
159 | | - | (2) “INTERESTED PARTY ” MEANS: 10 |
---|
160 | | - | |
---|
161 | | - | (I) THE PERSON WHO LAST APPEARS AS OWNER OF THE 11 |
---|
162 | | - | PROPERTY ON THE COLLECTOR ’S TAX ROLL; 12 |
---|
163 | | - | |
---|
164 | | - | (II) A MORTGAGEE OF THE PROPERTY OR ASSIGNEE OF A 13 |
---|
165 | | - | MORTGAGE OF RECORD ; 14 |
---|
166 | | - | |
---|
167 | | - | (III) A HOLDER OF A BENEFI CIAL INTEREST IN A D EED OF TRUST 15 |
---|
168 | | - | RECORDED AGAINST THE PROPERTY; 16 |
---|
169 | | - | |
---|
170 | | - | (IV) A TAXING AGENCY THAT HAS THE AUTHORITY TO COLLECT 17 |
---|
171 | | - | TAX ON THE PROPERTY; OR 18 |
---|
172 | | - | |
---|
173 | | - | (V) ANY PERSON HAVING AN INTEREST IN THE PROPERTY 19 |
---|
174 | | - | WHOSE IDENTITY AND A DDRESS ARE: 20 |
---|
175 | | - | |
---|
176 | | - | 1. REASONABLY ASCERTAIN ABLE FROM THE COUNTY 21 |
---|
177 | | - | LAND RECORDS ; OR 22 |
---|
178 | | - | |
---|
179 | | - | 2. REVEALED BY A FULL TITLE SEARCH CONSIST ING OF 23 |
---|
180 | | - | AT LEAST 50 YEARS. 24 |
---|
181 | | - | |
---|
182 | | - | (3) “TAX” HAS THE MEANING STAT ED IN § 14–801 OF THIS SUBTITLE . 25 |
---|
183 | | - | |
---|
184 | | - | (B) BALTIMORE CITY MAY CONDUCT AN IN RE M FORECLOSURE AND SA LE 26 |
---|
185 | | - | OF RESIDENTIAL PROPERTY ON WHICH THE TAXES ARE IN ARREARS IN ACCORDANCE 27 |
---|
186 | | - | WITH THIS SECTION. 28 HOUSE BILL 867 5 |
---|
| 141 | + | 14–893. RESERVED. 31 4 HOUSE BILL 867 |
---|
231 | | - | (G) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE : 29 6 HOUSE BILL 867 |
---|
| 182 | + | (C) BALTIMORE CITY MAY FORECLOSE ON AND SELL A RESIDENTIAL 25 |
---|
| 183 | + | PROPERTY ON WHICH THE TAXES A RE IN ARREARS UNDER THIS SECTION ONLY IF: 26 |
---|
| 184 | + | |
---|
| 185 | + | (1) AT LEAST 3 YEARS HAVE ELAPSED S INCE BALTIMORE CITY FIRST 27 |
---|
| 186 | + | BEGAN MAKING DOCUMEN TED ATTEMPTS TO CONTACT TH E PROPERTY OWNER TO 28 HOUSE BILL 867 5 |
---|
| 187 | + | |
---|
| 188 | + | |
---|
| 189 | + | OFFER ASSISTANCE WIT H PAYING THE TAXES IN ARREARS ; 1 |
---|
| 190 | + | |
---|
| 191 | + | (2) BALTIMORE CITY HAS MADE AT LEAST TE N ATTEMPTS TO 2 |
---|
| 192 | + | CONTACT THE PROPERTY OWNER TO OFFER ASSISTANCE WITH PAYING THE TAXES 3 |
---|
| 193 | + | IN ARREARS; AND 4 |
---|
| 194 | + | |
---|
| 195 | + | (3) THERE HAS BEEN NO AC TIVE PAYMENT PLAN FOR THE PAYMENT 5 |
---|
| 196 | + | OF THE TAXES IN ARRE ARS ON THE PROPERTY FOR AT LEAST THE PRE CEDING 12 6 |
---|
| 197 | + | MONTHS. 7 |
---|
| 198 | + | |
---|
| 199 | + | (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH : 8 |
---|
| 200 | + | |
---|
| 201 | + | (1) OBJECTIVE CRITERIA FOR WITHHOLD ING RESIDENTIAL 9 |
---|
| 202 | + | PROPERTIES FROM FORE CLOSURE AND SALE UNDER THIS SECTION ; AND 10 |
---|
| 203 | + | |
---|
| 204 | + | (2) A PROCESS BY WHICH A PROPERTY OWNER MAY A PPEAL THE 11 |
---|
| 205 | + | INCLUSION OF THE PROPERTY OWNER’S PROPERTY IN A FORE CLOSURE AND SALE 12 |
---|
| 206 | + | UNDER THIS SECTION . 13 |
---|
| 207 | + | |
---|
| 208 | + | (E) TO INITIATE AN IN REM FORECLOSURE ACTION , BALTIMORE CITY 14 |
---|
| 209 | + | SHALL: 15 |
---|
| 210 | + | |
---|
| 211 | + | (1) FILE A COMPLAINT FOR AN IN R EM FORECLOSURE IN TH E CIRCUIT 16 |
---|
| 212 | + | COURT FOR BALTIMORE CITY; AND 17 |
---|
| 213 | + | |
---|
| 214 | + | (2) SERVE THE COMPLAINT TO EAC H INTERESTED PARTY IN 18 |
---|
| 215 | + | ACCORDANCE WITH THE MARYLAND RULES. 19 |
---|
| 216 | + | |
---|
| 217 | + | (F) ALL TAXES SHALL: 20 |
---|
| 218 | + | |
---|
| 219 | + | (1) BE INCLUDED IN THE F ORECLOSURE ACTION ; AND 21 |
---|
| 220 | + | |
---|
| 221 | + | (2) CEASE TO BE A LIEN A GAINST THE PROPERTY IF A JUDGMENT IS 22 |
---|
| 222 | + | ENTERED FORECLOSING THE EXISTING INTERES TS OF ALL INTERESTED PARTIES IN 23 |
---|
| 223 | + | THE PROPERTY. 24 |
---|
| 224 | + | |
---|
| 225 | + | (G) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE : 25 |
---|
| 226 | + | |
---|
| 227 | + | (1) THE NAME AND ADDRESS OF THE APPROPRIATE AGENC Y OF 26 |
---|
| 228 | + | BALTIMORE CITY; 27 |
---|
| 229 | + | |
---|
| 230 | + | (2) A DESCRIPTION OF THE PROPERTY AS IT APPEARS IN THE COUNTY 28 |
---|
| 231 | + | LAND RECORDS ; 29 6 HOUSE BILL 867 |
---|
273 | | - | (K) AT THE HEARING , ANY INTERESTED PARTY SHALL HAVE THE RIGHT TO 28 |
---|
274 | | - | BE HEARD AND TO CONT EST THE DELINQUENCY OF THE TAXES AND THE ADEQUACY 29 |
---|
275 | | - | OF THE PROCEEDINGS . 30 |
---|
276 | | - | HOUSE BILL 867 7 |
---|
277 | | - | |
---|
278 | | - | |
---|
279 | | - | (L) IF THE CIRCUIT COURT FINDS THAT THE COMPLAINT WAS SERVED ON 1 |
---|
280 | | - | EACH INTERESTED PART Y AND THAT THE INFOR MATION SET FORTH IN THE 2 |
---|
281 | | - | COMPLAINT IS ACCURAT E, THE COURT SHALL : 3 |
---|
282 | | - | |
---|
283 | | - | (1) ENTER A JUDGMENT THA T PROPER NOTICE HAS BEEN PROVIDED 4 |
---|
284 | | - | TO ALL INTERESTED PA RTIES; AND 5 |
---|
285 | | - | |
---|
286 | | - | (2) ORDER THAT THE PROPERTY BE SOLD AT PUBLIC AU CTION. 6 |
---|
287 | | - | |
---|
288 | | - | (M) (1) AFTER ENTRY OF JUDGME NT UNDER SUBSECTION (L) OF THIS 7 |
---|
289 | | - | SECTION, BALTIMORE CITY SHALL SELL THE PROPERTY AT PUBLIC AUCTION IN 8 |
---|
290 | | - | ACCORDANCE WITH THE MARYLAND RULES. 9 |
---|
291 | | - | |
---|
292 | | - | (2) THE PROPERTY MAY NOT BE SOLD UNTI L AT LEAST 45 DAYS AFTER 10 |
---|
293 | | - | THE ENTRY OF JUDGMEN T. 11 |
---|
294 | | - | |
---|
295 | | - | (N) THE MINIMUM BID FOR T HE SALE OF THE PROPERTY SHALL BE BASED 12 |
---|
296 | | - | ON THE FAIR MARKET V ALUE OF THE PROPERTY, AS DETERMINED BY BALTIMORE 13 |
---|
297 | | - | CITY. 14 |
---|
298 | | - | |
---|
299 | | - | (O) (1) THE PROPERTY SHALL BE SOLD TO THE PERSON MAKING THE 15 |
---|
300 | | - | HIGHEST BID. 16 |
---|
301 | | - | |
---|
302 | | - | (2) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID 17 |
---|
303 | | - | AMOUNT TO BALTIMORE CITY. 18 |
---|
304 | | - | |
---|
305 | | - | (3) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE 19 |
---|
306 | | - | CITY MAY BID THE MINIMUM BID PRICE AND PURCHA SE THE PROPERTY . 20 |
---|
307 | | - | |
---|
308 | | - | (P) (1) BALTIMORE CITY SHALL DEPOSIT ANY AM OUNT BY WHICH THE 21 |
---|
309 | | - | HIGHEST BID EXCEEDS THE AMOUNT OF TAXES DUE ON THE PROPERTY IN AN 22 |
---|
310 | | - | ESCROW ACCOUNT . 23 |
---|
311 | | - | |
---|
312 | | - | (2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 24 |
---|
313 | | - | INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 25 |
---|
314 | | - | PRIORITY OF THE INTERESTS O F THE INTERESTED PAR TIES. 26 |
---|
315 | | - | |
---|
316 | | - | (Q) AFTER A SALE, BALTIMORE CITY SHALL FILE A NOTICE INFORMING THE 27 |
---|
317 | | - | CIRCUIT COURT OF THE SALE AND STATING THE DATE OF THE SALE , THE SALE 28 |
---|
318 | | - | PRICE, AND THE IDENTITY OF THE PURCHASER . 29 |
---|
319 | | - | |
---|
320 | | - | (R) A SALE OF A PROPERTY UNDER THIS SECTION IS F INAL AND BINDING ON 30 |
---|
321 | | - | THE MAKER OF THE HIG HEST BID. 31 8 HOUSE BILL 867 |
---|
| 275 | + | (1) ENTER A JUDGMENT THA T PROPER NOTICE HAS BEEN PROVIDED 30 |
---|
| 276 | + | TO ALL INTERESTED PA RTIES; AND 31 HOUSE BILL 867 7 |
---|
343 | | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15 |
---|
344 | | - | 1, 2023. 16 |
---|
| 293 | + | (O) (1) THE PROPERTY SHALL BE SOLD TO THE PERSON MAKING THE 10 |
---|
| 294 | + | HIGHEST BID. 11 |
---|
| 295 | + | |
---|
| 296 | + | (2) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID 12 |
---|
| 297 | + | AMOUNT TO BALTIMORE CITY. 13 |
---|
| 298 | + | |
---|
| 299 | + | (3) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE 14 |
---|
| 300 | + | CITY MAY BID THE MINIMUM BID PRICE AND PURCHA SE THE PROPERTY . 15 |
---|
| 301 | + | |
---|
| 302 | + | (P) (1) BALTIMORE CITY SHALL DEPOSIT ANY AM OUNT BY WHICH THE 16 |
---|
| 303 | + | HIGHEST BID EXCEEDS THE AMOUNT OF TAXES DUE ON THE PROPERTY IN AN 17 |
---|
| 304 | + | ESCROW ACCOUNT . 18 |
---|
| 305 | + | |
---|
| 306 | + | (2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 19 |
---|
| 307 | + | INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE OR DER OF 20 |
---|
| 308 | + | PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES. 21 |
---|
| 309 | + | |
---|
| 310 | + | (Q) AFTER A SALE, BALTIMORE CITY SHALL FILE A NOTICE INFORMING THE 22 |
---|
| 311 | + | CIRCUIT COURT OF THE SALE AND STATING THE DATE OF THE SALE , THE SALE 23 |
---|
| 312 | + | PRICE, AND THE IDENTITY OF THE PURCHASER . 24 |
---|
| 313 | + | |
---|
| 314 | + | (R) A SALE OF A PROPERTY UNDER THIS SECTION I S FINAL AND BINDING ON 25 |
---|
| 315 | + | THE MAKER OF THE HIG HEST BID. 26 |
---|
| 316 | + | |
---|
| 317 | + | (S) (1) THE TITLE ACQUIRED IN AN IN REM FORECLOSUR E PROCEEDING 27 |
---|
| 318 | + | SHALL BE AN ABSOLUTE OR FEE SIMPLE TITLE INCLUDING THE RIGHT , TITLE, AND 28 |
---|
| 319 | + | INTEREST OF EACH OF THE DEFENDANTS IN THE PROCEEDING WH OSE PROPERTY 29 |
---|
| 320 | + | HAS BEEN FORECLOSED UNLESS A DIFFERENT T ITLE IS SPECIFIED IN THE 30 |
---|
| 321 | + | JUDGMENT ENTERED . 31 8 HOUSE BILL 867 |
---|
348 | | - | Approved: |
---|
349 | | - | ________________________________________________________________________________ |
---|
350 | | - | Governor. |
---|
351 | | - | ________________________________________________________________________________ |
---|
352 | | - | Speaker of the House of Delegates. |
---|
353 | | - | ________________________________________________________________________________ |
---|
354 | | - | President of the Senate. |
---|
| 325 | + | (2) A JUDGMENT IN AN ACTIO N UNDER THIS SECTION IS BINDING AND 1 |
---|
| 326 | + | CONCLUSIVE, REGARDLESS OF LEGAL DISABILITY, ON: 2 |
---|
| 327 | + | |
---|
| 328 | + | (I) ALL PERSONS, KNOWN AND UNKNOWN , WHO WERE PARTIES 3 |
---|
| 329 | + | TO THE ACTION AND WH O HAD A CLAIM TO THE PROPERTY, WHETHER PRESENT OR 4 |
---|
| 330 | + | FUTURE, VESTED OR CONTINGENT , LEGAL OR EQUITABLE , OR SEVERAL OR 5 |
---|
| 331 | + | UNDIVIDED; AND 6 |
---|
| 332 | + | |
---|
| 333 | + | (II) ALL PERSONS WHO WERE NOT PARTIES TO THE A CTION AND 7 |
---|
| 334 | + | HAD A CLAIM TO T HE PROPERTY THAT WAS NOT RECORDED AT THE TIME THAT THE 8 |
---|
| 335 | + | ACTION WAS COMMENCED . 9 |
---|
| 336 | + | |
---|
| 337 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10 |
---|
| 338 | + | 1, 2023. 11 |
---|