EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 518
Q2, Q1 3lr1301
CF 3lr1302
By: Senators Corderman and McKay
Introduced and read first time: February 3, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Tax Sales – Revisions 2
FOR the purpose of authorizing the governing body of a county or municipal corporation to 3
file a motion with a court to request that a certain certificate of sale be assigned to 4
the governing body of the county or municipal corporation in a certain foreclosure 5
action under certain circumstances; providing that, on a grant of the motion by the 6
court, the holder of the certificate of sale forfeits certain rights and the amount paid 7
to acquire the certificate of sale; authorizing a court, under certain circumstances, to 8
strike the final judgment in a tax sale action foreclosing the right of redemption in a 9
property and grant the governing body of a county or municipal corporation the right 10
to pay the balance of the purchase price due on the property; requiring a court to 11
direct a tax collector to execute a deed to the governing body of a county or municipal 12
corporation on payment by the governing body of the purchase price due on the 13
property; requiring the governing body of a county or municipal corporation to take 14
title to the property in a certain manner; authorizing a county or municipal 15
corporation to withhold a property from tax sale if the county or municipal 16
corporation intends to demolish a vacant and blighted building or structure on the 17
property; requiring the collector of taxes to deliver a certificate of sale to the 18
governing body of a county or municipal corporation for each property withheld from 19
sale by the county or municipal corporation under certain provisions of law; applying 20
certain provisions of this Act retroactively; and generally relating to tax sales. 21
BY adding to 22
Article – Tax – Property 23
Section 14–820.1 and 14–821(c) 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2022 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Tax – Property 28
Section 14–811(c) and 14–847 29 2 SENATE BILL 518
Annotated Code of Maryland 1
(2019 Replacement Volume and 2022 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Tax – Property 5
14–821. 6
(C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L 7
CORPORATION MAY FILE A MOTION WITH THE CO URT REQUESTING THAT A 8
CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR 9
MUNICIPAL CORPORATIO N IF: 10
(I) A FORECLOSURE ACTION HAS BEEN INITIATED BY THE 11
HOLDER OF THE CERTIF ICATE OF SALE IN ACC ORDANCE WITH THIS SU BTITLE; AND 12
(II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR 13
A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A MOTION FOR THE 14
ENTRY OF A FINAL ORD ER HAS NOT BEEN FILED IN THE FORECLO SURE ACTION 15
WITHIN 18 MONTHS AFTER THE FIL ING OF THE COMPLAINT , WHICHEVER IS 16
EARLIER. 17
(2) ON THE FILING OF A MO TION UNDER THIS SUBS ECTION, THE 18
COURT SHALL DIRECT T HE HOLDER OF THE CER TIFICATE OF SALE TO SHOW GOOD 19
CAUSE AS TO WHY THE COURT SHOULD NOT GRANT THE MOTION . 20
(3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND 21
TO THE MOTION IN ACC ORDANCE WITH THE MARYLAND RULES, THE COURT SHALL 22
GRANT THE MOTION . 23
(4) IF A COURT GRANTS A M OTION UNDER THIS SUB SECTION, THE 24
HOLDER OF THE CERTIFICA TE OF SALE SHALL FOR FEIT: 25
(I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND 26
(II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE. 27
14–847. 28
(a) (1) (I) Except as provided in paragraph (2) of this subsection, the 29
judgment of the court shall direct the collector to execute a deed to the holder of the 30
certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector 31 SENATE BILL 518 3
of the balance of the purchase price, due on account of the purchase price of the property, 1
together with all taxes and interest and penalties on the property that accrue after the date 2
of sale. 3
(II) The judgment shall direct the supervisor to enroll the holder of 4
the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the 5
property. 6
(2) In Frederick County, if the collector is absent, the deed may be executed 7
by a deputy collector designated by the collector. 8
(b) The deed shall be prepared by the holder of the certificate of sale or the 9
attorney for the holder of the certificate of sale and all expenses incident to the preparation 10
and execution of the deed shall be paid by the holder of the certificate of sale. 11
(c) The clerk of the court in which the suit is instituted shall issue a certified copy 12
of the judgment of the court to the collector and supervisor and the collector is not obligated 13
to execute the deed provided for in this section until that certified copy of the judgment is 14
delivered to the collector. 15
(d) (1) If the holder of the certificate of sale does not comply with the terms of 16
the final judgment of the court within 90 days as to payments to the collector of the balance 17
of the purchase price due on account of the purchase price of the property and of all taxes, 18
interest, and penalties that accrue after the date of sale, that judgment may be stricken by 19
the court on the motion of an interested party for good cause shown. 20
(2) In Baltimore City, a certificate holder who has been enrolled as the 21
owner of the property under subsection (a) of this section is not an interested party within 22
the meaning of this subsection. 23
(3) IF THE HOLDER OF THE CERTIFICATE OF SALE DOES NOT COMPLY 24
WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 90 DAYS AS TO 25
PAYMENTS TO THE COLL ECTOR OF THE BALAN CE OF THE PURCHASE P RICE DUE ON 26
ACCOUNT OF THE PURCH ASE PRICE OF THE PRO PERTY AND OF ALL TAX ES, 27
INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, AND NO 28
MOTION HAS BEEN FILE D UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COURT 29
MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR MUNICIPAL 30
CORPORATION IN WHICH THE PROPERTY IS LOCA TED, FOR GOOD CAUSE SHOWN , 31
ENTER A JUDGMENT: 32
(I) STRIKING THE FINAL JUDGMENT O F THE COURT; 33
(II) DIRECTING THE COLLECTOR TO EXE CUTE A DEED 34
PREPARED BY THE GOVERNING BODY OF TH E COUNTY OR MUNICIPA L CORPORATION 35
IN FEE SIMPLE , ON PAYMENT TO THE CO LLECTOR OF THE BALANCE OF THE 36
PURCHASE PRICE DUE O N ACCOUNT OF THE PUR CHASE PRICE OF THE P ROPERTY 37 4 SENATE BILL 518
AND OF ALL TAXES , INTEREST, AND PENALTIES THAT ACCRUE AFTER THE DAT E OF 1
SALE; AND 2
(III) VESTING TITLE TO THE PROPERTY IN THE GOVERNING BODY 3
OF THE COUNTY OR MUN ICIPAL CORPORATION I N FEE SIMPLE, FREE AND CLEAR OF 4
ALL ALIENATIONS AND DESCENTS OF THE PROP ERTY OCCURRING BEFOR E THE 5
DATE OF THE FINAL JUDGMENT AND ENCUMBR ANCES ON THE PROPERT Y, EXCEPT 6
ANY TAXES THAT ACCRUE AF TER THE DATE OF SALE AND EASEMENTS OF RECORD 7
AND ANY OTHER EASEMENT THAT MAY BE OBSERVED BY A N INSPECTION OF THE 8
PROPERTY TO WHICH TH E PROPERTY IS SUBJEC T. 9
(4) IF A HOLDER OF A CE RTIFICATE OF SALE SUBMITS A DEED UNDER 10
SUBSECTION (B) OF THIS SECTION FOR THE PROPERTY TO THE GOVERNING BODY O F 11
THE COUNTY OR MUNICIPAL CORPORATION BEFORE A JUDGMENT UNDER 12
PARAGRAPH (1) OR (3) OF THIS SUBSECTION I S ENTERED, THE MOTION UNDER 13
PARAGRAPH (1) OR (3) OF THIS SUBSECTION SHALL BE DENIED AS M OOT. 14
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 15
as follows: 16
Article – Tax – Property 17
14–811. 18
(c) Except as provided in subsection (d) of this section, the governing body of a 19
county or municipal corporation may withhold from sale property that: 20
(1) HAS A VACANT BUILDIN G OR STRUCTURE THAT THE COUNTY OR 21
MUNICIPAL CORPORATIO N INTENDS TO DEMOLIS H BECAUSE THE BUILDI NG OR 22
STRUCTURE IS UNSAFE OR UNFIT FOR HABITAT ION; OR 23
(2) has been designated for redevelopment purposes if: 24
[(1)] (I) the county or municipal corporation certifies that the property: 25
[(i)] 1. is a vacant lot; or 26
[(ii)] 2. has a building or structure that is: 27
[1.] A. vacant; and 28
[2.] B. unsafe or unfit for habitation; 29
[(2)] (II) the governing body of the county or municipal corporation finds 30
that withholding the property from sale under this subsection is necessary: 31 SENATE BILL 518 5
[(i)] 1. to eliminate a blighting influence; and 1
[(ii)] 2. to prevent the tax abandonment of the property; and 2
[(3)] (III) the property meets any additional objective criteria established 3
by the governing body of the county or municipal corporation for withholding property from 4
sale for redevelopment purposes. 5
14–820.1. 6
THE COLLECTOR SHALL D ELIVER A CERTIFICATE OF SALE TO THE 7
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION FOR EACH PROPERTY 8
WITHHELD FROM SALE B Y THE GOVERNING BODY OF THE COUNTY OR MUN ICIPAL 9
CORPORATION UNDER § 14–811(C) OF THIS SUBTITLE. 10
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 11
construed to apply retroactively and shall be applied to and interpreted to affect tax sale 12
actions foreclosing the right of redemption in properties that are pending on enactment of 13
this Act. 14
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15
1, 2023. 16