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.
*sb0518*
SENATE BILL 518
Q2, Q1 3lr1301
CF HB 779
By: Senators Corderman and McKay, McKay, and Rosapepe
Introduced and read first time: February 3, 2023
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 8, 2023
CHAPTER ______
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 2 SENATE BILL 518
Annotated Code of Maryland 1
(2019 Replacement Volume and 2022 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Tax – Property 4
Section 14–811(c) and 14–847 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2022 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Tax – Property 10
14–821. 11
(C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L 12
CORPORATION MAY FILE A MOTION WITH THE CO URT REQUESTING THAT A 13
CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR 14
MUNICIPAL CORPORATIO N IF: 15
(I) A FORECLOSURE ACTION HAS BEEN INITIATED B Y THE 16
HOLDER OF THE CERTIF ICATE OF SALE IN ACC ORDANCE WITH THIS SU BTITLE; AND 17
(II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR 18
A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A MOTION FOR THE 19
ENTRY OF A FINAL ORDER HAS NO T BEEN FILED IN THE FORECLOSURE ACTION 20
WITHIN 18 MONTHS AFTER THE FIL ING OF THE COMPLAINT , WHICHEVER IS 21
EARLIER. 22
(2) ON THE FILING OF A MO TION UNDER THIS SUBS ECTION, THE 23
COURT SHALL DIRECT T HE HOLDER OF THE CER TIFICATE OF SALE TO SHOW GOOD 24
CAUSE AS TO WHY THE COURT SHOULD NOT GRA NT THE MOTION . 25
(3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND 26
TO THE MOTION IN ACC ORDANCE WITH THE MARYLAND RULES, THE COURT SHALL 27
GRANT THE MOTION . 28
(4) IF A COURT GRANTS A M OTION UNDER THIS SUBSECTION , THE 29
HOLDER OF THE CERTIF ICATE OF SALE SHALL FORFEIT: 30
(I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND 31
(II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE. 32
SENATE BILL 518 3
14–847. 1
(a) (1) (I) Except as provided in paragraph (2) of this subsection, the 2
judgment of the court shall direct the collector to execute a deed to the holder of the 3
certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector 4
of the balance of the purchase price, due on account of the purchase price of the property, 5
together with all taxes and interest and penalties on the property that accrue after the date 6
of sale. 7
(II) The judgment shall direct the supervisor to enroll the holder of 8
the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the 9
property. 10
(2) In Frederick County, if the collector is absent, the deed may be executed 11
by a deputy collector designated by the collector. 12
(b) The deed shall be prepared by the holder of the certificate of sale or the 13
attorney for the holder of the certificate of sale and all expenses incident to the preparation 14
and execution of the deed shall be paid by the holder of the certificate of sale. 15
(c) The clerk of the court in which the suit is instituted shall issue a certified copy 16
of the judgment of the court to the collector and supervisor and the collector is not obligated 17
to execute the deed provided for in this section until that certified copy of the judgment is 18
delivered to the collector. 19
(d) (1) If the holder of the certificate of sale does not comply with the terms of 20
the final judgment of the court within 90 days as to payments to the collector of the balance 21
of the purchase price due on account of the purchase price of the property and of all taxes, 22
interest, and penalties that accrue after the date of sale, that judgment may be stricken by 23
the court on the motion of an interested party for good cause shown. 24
(2) In Baltimore City, a certificate holder who has been enrolled as the 25
owner of the property under subsection (a) of this section is not an interested party within 26
the meaning of this subsection. 27
(3) IF THE HOLDER OF THE CERTIFICATE OF SALE DOES NOT COMPLY 28
WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 90 105 DAYS AS 29
TO PAYMENTS TO THE COLLECTOR OF THE BALANCE OF TH E PURCHASE PRICE DUE 30
ON ACCOUNT OF THE PU RCHASE PRICE OF THE PROPERTY AND OF ALL TAXES, 31
INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, AND NO 32
MOTION HAS BEEN FILE D UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COURT 33
MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR MUNICIPAL 34
CORPORATION IN WHICH THE PROPERTY IS LOCA TED, FOR GOOD CAUSE SHOWN , 35
ENTER A JUDGMENT : 36
(I) STRIKING THE FINAL J UDGMENT OF THE COURT ; 37 4 SENATE BILL 518
(II) DIRECTING THE COLLEC TOR TO EXECUTE A DEED 1
PREPARED BY THE GOVE RNING BODY OF THE CO UNTY OR MUNICIPAL CO RPORATION 2
IN FEE SIMPLE , ON PAYMENT TO THE CO LLECTOR OF THE BALAN CE OF THE 3
PURCHASE PRICE DUE O N ACCOUNT OF THE PUR CHASE PRICE OF THE P ROPERTY 4
AND OF ALL TAXES , INTEREST, AND PENALTIES THAT ACCRUE AFTER THE DAT E OF 5
SALE; AND 6
(III) VESTING TITLE TO THE PROPERTY IN THE GOVE RNING BODY 7
OF THE COUNTY OR MUN ICIPAL CORPORATION I N FEE SIMPLE, FREE AND CLEAR OF 8
ALL ALIENATIONS AND DESCENTS OF THE PROP ERTY OCCURRING BEFOR E THE 9
DATE OF THE FINAL JU DGMENT AND ENCUMBRAN CES ON THE PROPERTY , EXCEPT 10
ANY TAXES THAT ACCRU E AFTER THE DATE OF SALE AND EASEMENTS O F RECORD 11
AND ANY OTHER EASEME NT THAT MAY BE OBSER VED BY AN INSPECTION OF THE 12
PROPERTY TO WHICH TH E PROPERTY IS SUBJEC T. 13
(4) IF A HOLDER OF A CERT IFICATE OF SALE SUBM ITS A DEED UNDER 14
SUBSECTION (B) OF THIS SECTION FOR THE PROPERTY TO THE GOVERNING BODY OF 15
THE COUNTY OR MUNICI PAL CORPORATION BEFO RE A JUDGMENT UNDER 16
PARAGRAPH (1) OR (3) OF THIS SUBSECTION I S ENTERED, THE MOTION UNDER 17
PARAGRAPH (1) OR (3) OF THIS SUBSECTION S HALL BE DENIED AS MO OT. 18
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
as follows: 20
Article – Tax – Property 21
14–811. 22
(c) Except as provided in subsection (d) of this section, the governing body of a 23
county or municipal corporation may withhold from sale property that: 24
(1) HAS A VACANT BUILDIN G OR STRUCTURE THAT THE COUNTY OR 25
MUNICIPAL CORPORATIO N INTENDS TO DEMOLIS H BECAUSE THE BUILDI NG OR 26
STRUCTURE IS UNSAFE OR UNFIT FOR HABITAT ION; OR 27
(2) has been designated for redevelopment purposes if: 28
[(1)] (I) the county or municipal corporation certifies that the property: 29
[(i)] 1. is a vacant lot; or 30
[(ii)] 2. has a building or structure that is: 31
[1.] A. vacant; and 32 SENATE BILL 518 5
[2.] B. unsafe or unfit for habitation; 1
[(2)] (II) the governing body of the county or municipal corporation finds 2
that withholding the property from sale under this subsection is necessary: 3
[(i)] 1. to eliminate a blighting influence; and 4
[(ii)] 2. to prevent the tax abandonment of the property; and 5
[(3)] (III) the property meets any additional objective criteria established 6
by the governing body of the county or municipal corporation for withholding property from 7
sale for redevelopment purposes. 8
14–820.1. 9
THE COLLECTOR SHALL DELI VER A CERTIFICATE OF SALE TO THE 10
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION FOR EACH PROPERTY 11
WITHHELD FROM SALE B Y THE GOVERNING BODY OF THE COUNTY OR MUN ICIPAL 12
CORPORATION UNDER § 14–811(C) OF THIS SUBTITLE. 13
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 14
construed to apply retroactively and shall be applied to and interpreted to affect tax sale 15
actions foreclosing the right of redemption in properties that are pending on enactment of 16
this Act. 17
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
1, 2023. 19
Approved:
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Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.