EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0867*
HOUSE BILL 867
Q2 3lr2090
CF SB 766
By: Baltimore City Delegation
Introduced and read first time: February 9, 2023
Assigned to: Ways and Means
Committee Report: Favorable
House action: Adopted
Read second time: March 9, 2023
CHAPTER ______
AN ACT concerning 1
Baltimore City – Collection of Unpaid Property Taxes 2
FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish 3
an installment payment program for taxes in arrears on residential property; 4
authorizing the Mayor of Baltimore City to cancel the annual tax sale; authorizing 5
the Mayor and City Council of Baltimore City to establish a program to divert 6
residential property from the private tax lien sale process into an alternative 7
program for the payment of taxes in arrears; authorizing the collector of taxes in 8
Baltimore City to withhold any residential property from tax sale; authorizing 9
Baltimore City to conduct a judicial in rem foreclosure and sale of residential 10
property on which the taxes are in arrears under certain circumstances; establishing 11
procedures for an in rem foreclosure and sale; and generally relating to the collection 12
of unpaid property taxes in Baltimore City. 13
BY adding to 14
Article – Tax – Property 15
Section 10–209 and 14–811(b)(4); and 14–894 to be under the new part “Part VIII. 16
Baltimore City Judicial In Rem Tax Foreclosure for Residential Property” 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2022 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Tax – Property 21
Section 14–801(d) 22
Annotated Code of Maryland 23 2 HOUSE BILL 867
(2019 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Tax – Property 3
Section 14–808(a) 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2022 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Tax – Property 9
10–209. 10
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, BY LAW, 11
ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN ARREARS ON ANY 12
RESIDENTIAL PROPERTY IN WHICH AN Y PERSON WITH AN INT EREST IN THE 13
PROPERTY MAY ENROLL , INCLUDING A LESSEE O R A PERSON WHO STAND S TO 14
INHERIT THE PROPERTY F ROM THE PERSON WHO L AST APPEARS AS OWNER OF THE 15
PROPERTY ON THE COLL ECTOR’S TAX ROLL. 16
(B) ANY FEE OR CHARGE OF ANY KIND THAT IS INCLUDED ON A BALTIMORE 17
CITY PROPERTY TAX BILL MAY BE PAID THROUGH THE INSTALLMENT PAYMENT 18
PROGRAM AUTHORIZED UNDER SUBSECTION (A) OF THIS SUBSECTION . 19
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY PROVIDE, BY 20
LAW, FOR: 21
(1) ANY ADDITIONAL ELIGI BILITY CRITERIA FOR AN INSTALLMENT 22
PAYMENT PROGRAM UNDER THIS SECTION ; 23
(2) THE PROCESS FOR ENROLLING IN AN INSTALLMENT PAYMENT 24
PROGRAM; 25
(3) THE FREQUENCY AND DUE DATES OF INSTALLMENT PAYMENTS ; 26
AND 27
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THIS SECTION. 28
(D) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY ESTABLISH AN 29
INSTALLMENT PAYMENT PROGRAM UNDE R SUBSECTION (A) OF THIS SECTION , 30
BALTIMORE CITY SHALL ARRANGE FO R THE PAYMENT TO THE STATE OF ANY STATE 31
PROPERTY TAXES IN AR REARS ON A PROPERTY ENROLLED IN THE PROG RAM. 32 HOUSE BILL 867 3
14–801. 1
(d) (1) “Tax” means any tax, or charge of any kind due to the State or any of 2
its political subdivisions, or to any other taxing agency, that by law is a lien against the 3
real property on which it is imposed or assessed. 4
(2) “Tax” includes interest, penalties, and service charges. 5
14–808. 6
(a) (1) Except for property that has been transferred by a municipality or 7
county to a land bank authority established under § 1–1403 of the Local Government 8
Article, and except as provided [under] IN PARAGRAPH (3) OF THIS SUBSECTION O R § 9
14–811 of this subtitle, the collector shall proceed to sell and shall sell under this subtitle, 10
at the time required by local law but in no case, except in Baltimore City, later than 2 years 11
from the date the tax is in arrears, all property in the county in which the collector is elected 12
or appointed on which the tax is in arrears. 13
(2) The collector is required to sell, but failure of the collector to sell within 14
the 2–year period does not affect the validity or collectability of any tax, or the validity of 15
any sale thereafter made. 16
(3) (I) THE MAYOR OF BALTIMORE CITY MAY CANCEL THE 17
ANNUAL TAX SALE. 18
(II) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, 19
BY LAW, ESTABLISH A PROGRAM TO DIVERT RESIDENTIA L PROPERTY FROM THE 20
PRIVATE TAX LIEN SAL E PROCESS INTO AN AL TERNATIVE PROGRAM FOR THE 21
COLLECTION OF TAXES IN ARREARS THAT MAY INCLUDE: 22
1. OUTREACH TO PROPERTY OWNERS TO ASSIST THE 23
PROPERTY OWNERS TO P AY THEIR TAXES; 24
2. INSTALLMENT PAYMENT PLANS FOR TAXES IN 25
ARREARS UNDER § 10–209 OF THIS ARTICLE; 26
3. JUDICIAL IN REM FORE CLOSURE AND SALE UND ER § 27
14–894 OF THIS SUBTITLE ; AND 28
4. ANY OTHER PROVISION NECESSARY TO CARRY O UT 29
THE PROGRAM . 30
14–811. 31
4 HOUSE BILL 867
(b) (4) IN BALTIMORE CITY, THE COLLECTOR MAY WI THHOLD FROM 1
SALE ANY RESIDENTIAL PROPERTY. 2
14–892. RESERVED. 3
14–893. RESERVED. 4
PART VIII. BALTIMORE CITY JUDICIAL IN REM TAX FORECLOSURE FOR 5
RESIDENTIAL PROPERTY. 6
14–894. 7
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9
(2) “INTERESTED PARTY ” MEANS: 10
(I) THE PERSON WHO LAST APPEARS AS OWNER OF THE 11
PROPERTY ON THE COLLECTOR ’S TAX ROLL; 12
(II) A MORTGAGEE OF THE PROPERTY OR ASSIGNEE OF A 13
MORTGAGE OF RECORD ; 14
(III) A HOLDER OF A BENEFI CIAL INTEREST IN A D EED OF TRUST 15
RECORDED AGAINST THE PROPERTY; 16
(IV) A TAXING AGENCY THAT HAS THE AUTHORITY TO COLLECT 17
TAX ON THE PROPERTY; OR 18
(V) ANY PERSON HAVING AN INTEREST IN THE PROPERTY 19
WHOSE IDENTITY AND A DDRESS ARE: 20
1. REASONABLY ASCERTAIN ABLE FROM THE COUNTY 21
LAND RECORDS ; OR 22
2. REVEALED BY A FULL TITLE SEARCH CONSIST ING OF 23
AT LEAST 50 YEARS. 24
(3) “TAX” HAS THE MEANING STAT ED IN § 14–801 OF THIS SUBTITLE . 25
(B) BALTIMORE CITY MAY CONDUCT AN IN RE M FORECLOSURE AND SA LE 26
OF RESIDENTIAL PROPERTY ON WHICH THE TAXES ARE IN ARREARS IN ACCORDANCE 27
WITH THIS SECTION. 28 HOUSE BILL 867 5
(C) BALTIMORE CITY MAY FORECLOSE ON AND SELL A RESIDENTIAL 1
PROPERTY ON WHICH THE TAXES A RE IN ARREARS UNDER THIS SECTION ONLY IF: 2
(1) AT LEAST 3 YEARS HAVE ELAPSED S INCE BALTIMORE CITY FIRST 3
BEGAN MAKING DOCUMEN TED ATTEMPTS TO CONTACT THE PROPE RTY OWNER TO 4
OFFER ASSISTANCE WIT H PAYING THE TAXES IN ARREARS ; 5
(2) BALTIMORE CITY HAS MADE AT LEAST TE N ATTEMPTS TO 6
CONTACT THE PROPERTY OWNER TO OFFER ASSISTANCE WITH PAYING THE TAXES 7
IN ARREARS; AND 8
(3) THERE HAS BEEN NO AC TIVE PAYMENT PLAN FOR T HE PAYMENT 9
OF THE TAXES IN ARRE ARS ON THE PROPERTY FOR AT LEAST THE PRE CEDING 12 10
MONTHS. 11
(D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH : 12
(1) OBJECTIVE CRITERIA FOR WITHHOLD ING RESIDENTIAL 13
PROPERTIES FROM FORE CLOSURE AND SALE UNDER THIS SECTION; AND 14
(2) A PROCESS BY WHICH A PROPERTY OWNER MAY A PPEAL THE 15
INCLUSION OF THE PROPERTY OWNER’S PROPERTY IN A FORE CLOSURE AND SALE 16
UNDER THIS SECTION . 17
(E) TO INITIATE AN IN REM FORECLOSURE ACTION , BALTIMORE CITY 18
SHALL: 19
(1) FILE A COMPLAINT FOR AN IN REM FORECLOSUR E IN THE CIRCUIT 20
COURT FOR BALTIMORE CITY; AND 21
(2) SERVE THE COMPLAINT TO EAC H INTERESTED PARTY IN 22
ACCORDANCE WITH THE MARYLAND RULES. 23
(F) ALL TAXES SHALL: 24
(1) BE INCLUDED IN THE F ORECLOSURE ACTION ; AND 25
(2) CEASE TO BE A LIEN A GAINST THE PROPERTY IF A JUDGMENT IS 26
ENTERED FORECLOSING THE EXISTING INTERES TS OF ALL INTERESTED PARTIES IN 27
THE PROPERTY. 28
(G) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE : 29 6 HOUSE BILL 867
(1) THE NAME AND ADDRESS OF THE APPROPRIAT E AGENCY OF 1
BALTIMORE CITY; 2
(2) A DESCRIPTION OF THE PROPERTY AS IT APPEARS IN THE COUNTY 3
LAND RECORDS ; 4
(3) THE TAX IDENTIFICATI ON NUMBER OF THE PROPERTY; 5
(4) A STATEMENT THAT THE TAXES ARE DELINQUENT AT THE TIME OF 6
THE FILING; 7
(5) THE AMOUNT O F TAXES THAT ARE DEL INQUENT AS OF THE DA TE 8
OF THE FILING; 9
(6) THE NAMES AND LAST K NOWN ADDRESSES OF AL L INTERESTED 10
PARTIES IN THE PROPERTY AND, IF APPLICABLE, A STATEMENT THAT THE ADDRESS 11
OF A PARTICULAR INTE RESTED PARTY IN THE PROPERTY IS UNKNOWN; AND 12
(7) A REQUEST THAT THE C IRCUIT COURT ENTER A JUDGMENT THAT 13
FORECLOSES THE EXIST ING INTERESTS OF ALL INTERESTED PARTIES I N THE 14
PROPERTY AND ORDERS THE PROPERTY TO BE SOLD AT PUBLIC AUCTION. 15
(H) A COMPLAINT FOR AN IN REM FORECLOSURE MAY BE AMENDED TO 16
INCLUDE ALL TAXES TH AT BECOME DELINQUENT AFTER THE COMMENCEME NT OF 17
THE IN REM FORECLOSU RE ACTION. 18
(I) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 19
INTERESTED PARTY HAS THE RIGHT TO CURE TH E DELINQUENT TAXES O N THE 20
PROPERTY BY PAYING ALL PAST D UE TAXES AT ANY TIME BEF ORE THE ENTRY OF 21
THE FORECLOSURE JUDG MENT. 22
(2) THE RIGHT TO CURE THE DELINQUENT TAXES ON THE PROPERTY 23
IS EXTINGUISHED ONCE THE FORECLOSURE JUDG MENT IS ENTERED . 24
(J) A CIRCUIT COURT MAY NO T SET A HEARING FOR AN IN REM 25
FORECLOSURE UNT IL 30 DAYS AFTER THE COMPL AINT FOR AN IN REM 26
FORECLOSURE IS FILED . 27
(K) AT THE HEARING , ANY INTERESTED PARTY SHALL HAVE THE RIGHT TO 28
BE HEARD AND TO CONT EST THE DELINQUENCY OF THE TAXES AND THE ADEQUACY 29
OF THE PROCEEDINGS . 30
HOUSE BILL 867 7
(L) IF THE CIRCUIT COURT FINDS THAT THE COMPLAINT WAS SERVED ON 1
EACH INTERESTED PART Y AND THAT THE INFOR MATION SET FORTH IN THE 2
COMPLAINT IS ACCURAT E, THE COURT SHALL : 3
(1) ENTER A JUDGMENT THA T PROPER NOTICE HAS BEEN PROVIDED 4
TO ALL INTERESTED PA RTIES; AND 5
(2) ORDER THAT THE PROPERTY BE SOLD AT PUBLIC AU CTION. 6
(M) (1) AFTER ENTRY OF JUDGME NT UNDER SUBSECTION (L) OF THIS 7
SECTION, BALTIMORE CITY SHALL SELL THE PROPERTY AT PUBLIC AUCTION IN 8
ACCORDANCE WITH THE MARYLAND RULES. 9
(2) THE PROPERTY MAY NOT BE SOLD UNTI L AT LEAST 45 DAYS AFTER 10
THE ENTRY OF JUDGMEN T. 11
(N) THE MINIMUM BID FOR T HE SALE OF THE PROPERTY SHALL BE BASED 12
ON THE FAIR MARKET V ALUE OF THE PROPERTY, AS DETERMINED BY BALTIMORE 13
CITY. 14
(O) (1) THE PROPERTY SHALL BE SOLD TO THE PERSON MAKING THE 15
HIGHEST BID. 16
(2) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID 17
AMOUNT TO BALTIMORE CITY. 18
(3) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE 19
CITY MAY BID THE MINIMUM BID PRICE AND PURCHA SE THE PROPERTY . 20
(P) (1) BALTIMORE CITY SHALL DEPOSIT ANY AM OUNT BY WHICH THE 21
HIGHEST BID EXCEEDS THE AMOUNT OF TAXES DUE ON THE PROPERTY IN AN 22
ESCROW ACCOUNT . 23
(2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 24
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 25
PRIORITY OF THE INTERESTS O F THE INTERESTED PAR TIES. 26
(Q) AFTER A SALE, BALTIMORE CITY SHALL FILE A NOTICE INFORMING THE 27
CIRCUIT COURT OF THE SALE AND STATING THE DATE OF THE SALE , THE SALE 28
PRICE, AND THE IDENTITY OF THE PURCHASER . 29
(R) A SALE OF A PROPERTY UNDER THIS SECTION IS F INAL AND BINDING ON 30
THE MAKER OF THE HIG HEST BID. 31 8 HOUSE BILL 867
(S) (1) THE TITLE ACQUIRED IN AN IN REM FORECLOSUR E PROCEEDING 1
SHALL BE AN ABSOLUTE OR FEE SIMPLE TITLE INCLUDING THE RIGHT , TITLE, AND 2
INTEREST OF EACH OF THE DEFENDANTS IN TH E PROCEEDING WHOSE PROPERTY 3
HAS BEEN FORECLOSED UNLESS A DIFFERENT T ITLE IS SPECIFIED IN THE 4
JUDGMENT ENTERED . 5
(2) A JUDGMENT IN AN ACTIO N UNDER THIS SECTION IS BINDING AND 6
CONCLUSIVE, REGARDLESS OF LEGAL DISABILITY, ON: 7
(I) ALL PERSONS, KNOWN AND UNKNOWN , WHO WERE PARTIES 8
TO THE ACTION AND WH O HAD A CLAIM TO THE PROPERTY, WHETHER PRESENT OR 9
FUTURE, VESTED OR CONTINGENT , LEGAL OR EQUITABLE , OR SEVERAL OR 10
UNDIVIDED; AND 11
(II) ALL PERSONS WHO WERE NOT PARTIES TO THE A CTION AND 12
HAD A CLAIM TO THE P ROPERTY TH AT WAS NOT RECORDED AT THE TIME THAT THE 13
ACTION WAS COMMENCED . 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
1, 2023. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.