Maryland 2025 Regular Session

Maryland House Bill HB59 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5	5		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		hb0059
10	9
11	10		HOUSE BILL 59
12		-	Q1 (5lr0140)
13		-	ENROLLED BILL
14		-	— Ways and Means/Budget and Taxation —
15		-	Introduced by Chair, Ways and Means Committee (By Request – Departmental –
16		-	Housing and Community Development)
17		-
18		-	Read and Examined by Proofreaders:
19		-
20		-	_______________________________________________
21		-	Proofreader.
22		-	_______________________________________________
23		-	Proofreader.
24		-
25		-	Sealed with the Great Seal and presented to the Governor, for his a pproval this
26		-
27		-	_______ day of _______________ at ________________________ o’clock, ________M.
28		-
29		-	______________________________________________
30		-	Speaker.
	11	+	Q1 5lr0140
	12	+	(PRE–FILED) CF SB 192
	13	+	By: Chair, Ways and Means Committee (By Request – Departmental – Housing and
	14	+	Community Development)
	15	+	Requested: October 6, 2024
	16	+	Introduced and read first time: January 8, 2025
	17	+	Assigned to: Ways and Means
	18	+	Committee Report: Favorable with amendments
	19	+	House action: Adopted
	20	+	Read second time: February 27, 2025
31	21
32	22		CHAPTER ______
33	23
34	24		AN ACT concerning 1
35	25
36	26		Property Tax – Tax Sales – Revisions 2
37	27
38		-	FOR the purpose of authorizing a tax collector to withhold from tax sale certain property 3
39		-	occupied by an heir of a deceased owner of the property; requiring that certain 4
40		-	owner–occupied property and certain property occupied by an heir of a deceased 5
41		-	owner of the property be withheld from tax sale; requiring each county to establish a 6
42		-	registry for interested parties or the Tax Sale Ombudsman to designate property to be 7
43		-	withheld from tax sale under certain provisions of law; requiring the State 8
44		-	Department of Assessments and Taxation to assist each county in creating and 9
45		-	maintaining the registry on request; requiring a county or municipal corporation to 10
46		-	withhold from tax sale certain property when the taxes consist only of a lien for 11
47		-	unpaid water and sewer service; authorizing a county or a municipal corporation to 12
48		-	withhold from tax sale certain property designated for redevelopment purposes; 13
49		-	altering the contents of certain statements required to be sent to an owner of 14 2 HOUSE BILL 59
	28	+	FOR the purpose of requiring that certain owner–occupied property be withheld from tax 3
	29	+	sale; requiring a county or municipal corporation to withhold from tax sale certain 4
	30	+	property when the taxes consist only of a lien for unpaid water and sewer service; 5
	31	+	authorizing a county or a municipal corporation to withhold from tax sale certain 6
	32	+	property designated for redevelopment purposes; altering the contents of certain 7
	33	+	statements required to be sent to an owner of property subject to tax sale; altering 8
	34	+	certain provisions of law concerning abandoned property that is sold for less than 9
	35	+	the lien amount; establishing a maximum rate of redemption for owner–occupied 10
	36	+	property sold at tax sale; prohibiting taxes, interest, and penalties accruing after the 11
	37	+	date of a tax sale from being included in the payment required to redeem 12
	38	+	owner–occupied residential property; extending the period of time during which a 13
	39	+	holder of a certificate of sale is prohibited from filing a complaint to foreclose the 14
	40	+	right of redemption for owner–occupied residential property after the date of sale; 15
	41	+	altering the contents of certain notices required to be sent to certain persons with an 16
	42	+	interest in property sold at tax sale; extending the period of time after a tax sale 17
	43	+	during which a certain notice may not be sent to certain persons with an interest in 18
	44	+	owner–occupied residential property sold at the tax sale; requiring the plaintiff in an 19
	45	+	action to foreclose the right of redemption for an owner–occupied property subject to 20
	46	+	tax sale to send written notice of the proceeding to the State Tax Sale Ombudsman; 21
	47	+	extending the period of time after issuance of a judgment foreclosing the right of 22
	48	+	redemption before a plaintiff may take possession of a property that has tenants; 23 2 HOUSE BILL 59
50	49
51	50
52		-	property subject to tax sale; altering certain provisions of law concerning abandoned 1
53		-	property that is sold for less than the lien amount; establishing a maximum rate of 2
54		-	redemption for owner–occupied property sold at tax sale; prohibiting taxes, interest, 3
55		-	and penalties accruing after the date of a tax sale from being included in the payment 4
56		-	required to redeem owner–occupied residential property; extending the period of 5
57		-	time during which a holder of a certificate of sale is prohibited from filing a complaint 6
58		-	to foreclose the right of redemption for owner–occupied residential property after the 7
59		-	date of sale; altering the contents of certain notices required to be sent to certain 8
60		-	persons with an interest in property sold at tax sale; extending the period of time 9
61		-	after a tax sale during which a certain notice may not be sent to certain persons with 10
62		-	an interest in owner–occupied residential property sold at the tax sale; requiring the 11
63		-	plaintiff in an action to foreclose the right of redemption for an owner–occupied 12
64		-	property subject to tax sale to send written notice of the proceeding to the State Tax 13
65		-	Sale Ombudsman; extending the period of time after issuance of a judgment 14
66		-	foreclosing the right of redemption before a plaintiff may take possession of a 15
67		-	property that has tenants; altering certain notice requirements that apply before a 16
68		-	plaintiff may take possession of a property that has tenants; extending the amount 17
69		-	of time that has to pass after a tax sale before the plaintiff or the holder of a 18
70		-	certificate of sale for owner–occupied residential property may be reimbursed for 19
71		-	certain expenses when the property is redeemed; prohibiting the sale of property to 20
72		-	enforce a lien for unpaid charges for water and sewer service except under certain 21
73		-	circumstances; requiring a county to maintain a record of the information the county 22
74		-	provides for the Annual Tax Sale Survey for a certain minimum number of years; 23
75		-	altering certain requirements concerning eligibility for participation in the 24
76		-	Homeowner Protection Program; and generally relating to tax sales. 25
	51	+	altering certain notice requirements that apply before a plaintiff may take 1
	52	+	possession of a property that has tenants; extending the amount of time that has to 2
	53	+	pass after a tax sale before the plaintiff or the holder of a certificate of sale for 3
	54	+	owner–occupied residential property may be reimbursed for certain expenses when 4
	55	+	the property is redeemed; prohibiting the sale of property to enforce a lien for unpaid 5
	56	+	charges for water and sewer service except under certain circumstances; requiring a 6
	57	+	county to maintain a record of the information the county provides for the Annual 7
	58	+	Tax Sale Survey for a certain minimum number of years; altering certain 8
	59	+	requirements concerning eligibility for participation in the Homeowner Protection 9
	60	+	Program; and generally relating to tax sales. 10
77	61
78		-	BY repealing and reenacting, with amendments, 26
	62	+	BY repealing and reenacting, with amendments, 11
	63	+	Article – Tax – Property 12
	64	+	Section 14–811(b) and (e), 14–817.1(a), 14–820, 14–828(a), 14–833(a)(2), (a–1)(3)(v)3. 13
	65	+	14–833(a–1)(3)(v)3. and (vi)3. and (4)(i)2., (c)(2), and (d)(2), 14–836(b)(4)(i) and 14
	66	+	(7), 14–843(a)(4)(ii) and (b)(1)(ii), 14–844(e), 14–845(c), 14–849.1, 14–879(a), 15
	67	+	and 14–883(d) 16
	68	+	Annotated Code of Maryland 17
	69	+	(2019 Replacement Volume and 2024 Supplement) 18
	70	+
	71	+	BY repealing and reenacting, without amendments, 19
	72	+	Article – Tax – Property 20
	73	+	Section 14–811(a)(2), 14–817(c), 14–833(a)(2) and (a–14)(4)(i)2., 14–843(a)(4)(ii) and 21
	74	+	(b)(1)(ii), 14–849.1, 14–883(a), and 14–884 22
	75	+	Annotated Code of Maryland 23
	76	+	(2019 Replacement Volume and 2024 Supplement) 24
	77	+
	78	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
	79	+	That the Laws of Maryland read as follows: 26
	80	+
79	81		Article – Tax – Property 27
80		-	Section 14–811(b) and (e) 14–811(a)(2), (b), (e), and (h), 14–817.1(a), 14–820, 28
81		-	14–828(a), 14–833(a)(2), (a–1)(3)(v)3. 14–833(a–1)(3)(v)3. and (vi)3. and 29
82		-	(4)(i)2., (c)(2), and (d)(2), 14–836(b)(4)(i) and (7), 14–843(a)(4)(ii) and (b)(1)(ii), 30
83		-	14–844(e), 14–845(c), 14–849.1, 14–879(a), and 14–883(d) 31
84		-	Annotated Code of Maryland 32
85		-	(2019 Replacement Volume and 2024 Supplement) 33
86	82
87		-	BY adding to 34
88		-	Article – Tax – Property 35
89		-	Section 14–811(j) 36
90		-	Annotated Code of Maryland 37
91		-	(2019 Replacement Volume and 2024 Supplement) 38
	83	+	14–811. 28
92	84
93		-	BY repealing and reenacting, without amendments, 39
94		-	Article – Tax – Property 40
95		-	Section 14–811(a)(2), 14–817(c), 14–833(a)(2) and (a–14)(4)(i)2., (a–1)(4)(i)2., 41
96		-	14–843(a)(4)(ii) and (b)(1)(ii), 14–849.1, 14–883(a), and 14–884 42
97		-	Annotated Code of Maryland 43
98		-	(2019 Replacement Volume and 2024 Supplement) 44 HOUSE BILL 59 3
	85	+	(a) (2) The governing body of a county or municipal corporation may withhold 29
	86	+	from sale owner–occupied residential property that meets objective criteria established by 30
	87	+	the governing body of the county or municipal corporation. 31
	88	+
	89	+	(b) (1) The collector may withhold from sale any NON–OWNER–OCCUPIED 32
	90	+	residential property, when the total taxes on the property, including interest and penalties, 33
	91	+	amount to less than $750. 34
	92	+
	93	+	(2) [In Baltimore City, the] THE collector shall withhold from sale 35
	94	+	owner–occupied residential property, when the total taxes on the property, including 36
	95	+	interest and penalties, amount to less than [$750] $1,000. 37
	96	+	HOUSE BILL 59 3
	97	+
	98	+
	99	+	(3) [In Baltimore City, the] THE collector shall withhold from sale 1
	100	+	residential property or property that is exempt from taxation under § 7–204(1) or (2) of this 2
	101	+	article, if the taxes on the property consist only of a lien for unpaid charges for water and 3
	102	+	sewer service. 4
	103	+
	104	+	(e) [Baltimore City] THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY 5
	105	+	OR THE GOVERNING BOD Y OF A COUNTY OR MUN ICIPAL CORPORATION may withhold 6
	106	+	from sale property that has been designated for redevelopment purposes if the property 7
	107	+	meets objective criteria established by the Mayor and City Council of Baltimore City OR 8
	108	+	THE GOVERNING BODY . 9
	109	+
	110	+	14–817. 10
	111	+
	112	+	(c) (1) Abandoned property consisting of either a vacant lot or improved 11
	113	+	property cited as vacant and unfit for habitation on a housing or building violation notice 12
	114	+	may be sold for a sum less than the total amount of: 13
	115	+
	116	+	(i) all taxes on the property that are certified to the collector under 14
	117	+	§ 14–810 of this subtitle; 15
	118	+
	119	+	(ii) interest and penalties on the taxes; and 16
	120	+
	121	+	(iii) expenses incurred in making the sale. 17
	122	+
	123	+	(2) The collector shall establish a minimum bid for abandoned property 18
	124	+	sold under this subsection. 19
	125	+
	126	+	(3) The person responsible for the taxes prior to the sale shall remain liable 20
	127	+	to the collector for the difference between the amount received in the tax sale under this 21
	128	+	section and the taxes, interest, penalties, and expenses remaining after the sale. 22
	129	+
	130	+	(4) The balance remaining after the tax sale shall be included in the 23
	131	+	amount necessary to redeem the property under § 14–828 of this subtitle. 24
	132	+
	133	+	(5) In a proceeding brought by the governing body of a county or municipal 25
	134	+	corporation to foreclose the right of redemption under this subtitle, the complaint may 26
	135	+	request a judgment for the county or municipal corporation in the amount of the balance. 27
	136	+
	137	+	(6) The balance remaining after the tax sale is no longer a lien on the 28
	138	+	property when: 29
	139	+
	140	+	(i) a judgment is entered foreclosing the owner’s right of 30
	141	+	redemption; 31
	142	+
	143	+	(ii) the deed is recorded; and 32
	144	+
	145	+	(iii) all liens accruing subsequent to the date of sale are paid in full. 33 4 HOUSE BILL 59
99	146
100	147
101	148
102		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
103		-	That the Laws of Maryland read as follows: 2
	149	+	(7) The governing body of a county or municipal corporation may institute 1
	150	+	a separate action to collect the balance at any time within 7 years after the tax sale if the 2
	151	+	plaintiff is a private purchaser. 3
104	152
105		-	~~Article – Tax – Property 3~~
	153	+	14–817.1. 4
106	154
107		-	14–811. 4
	155	+	(a) Within 60 days after a property is sold at a tax sale, the collector shall send to 5
	156	+	the person who last appears as owner of the property on the collector’s tax roll, at the last 6
	157	+	address shown on the tax roll, a notice that includes: 7
108	158
109		-	(a) (2) The governing body of a county or municipal corporation may withhold 5
110		-	from sale owner–occupied residential property OR RESIDENTIAL PROPE RTY OCCUPIED 6
111		-	BY AN HEIR OF A DECE ASED OWNER that meets objective criteria established by the 7
112		-	governing body of the county or municipal corporation. 8
	159	+	(1) a statement that the property has been sold to satisfy unpaid taxes; 8
113	160
114		-	(b) (1) The collector may withhold from sale any NON–OWNER–OCCUPIED 9
115		-	residential property, when the total taxes on the property, including interest and penalties, 10
116		-	amount to less than $750. 11
	161	+	(2) the date of the tax sale; 9
117	162
118		-	(2) [In Baltimore City, the] THE collector shall withhold from sale 12
119		-	owner–occupied residential property, when WHEN the total taxes on the property, 13
120		-	including interest and penalties, amount to less than [$750] $1,000, THE COLLECTOR 14
121		-	SHALL WITHHOLD FROM SALE: 15
	163	+	(3) the amount of the highest bid; 10
122	164
123		-	(I) ~~OWNER–OCCUPIED RESIDEN TIAL~~ PROPERTY; ~~AND 16~~
	165	+	(4) the lien amount on the property at the time of sale; 11
124	166
125		-	(II) ~~RESIDENTIAL~~ PROPERTY ~~OCCUPIED BY AN HEIR OF A 17~~
126		-	~~DECEASED OWNER . 18~~
	167	+	(5) a statement that the owner has the right to redeem the property until 12
	168	+	a court forecloses that right; 13
127	169
128		-	(3) [In Baltimore City, the] THE collector shall withhold from sale 19
129		-	residential property or property that is exempt from taxation under § 7–204(1) or (2) of this 20
130		-	article, if the taxes on the property consist only of a lien for unpaid charges for water and 21
131		-	sewer service. 22
	170	+	(6) a statement that the purchaser of the property may institute an action 14
	171	+	to foreclose the property: 15
132	172
133		-	(e) [Baltimore City] THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY 23
134		-	OR THE GOVERNING BOD Y OF A COUNTY OR MUN ICIPAL CORPORATION may withhold 24
135		-	from sale property that has been designated for redevelopment purposes if the property 25
136		-	meets objective criteria established by the Mayor and City Council of Baltimore City OR 26
137		-	THE GOVERNING BODY . 27
	173	+	(i) as early as 6 months from the date of the sale; or 16
138	174
139		-	(h) (1) In this subsection, “dwelling” and “homeowner” have the meanings 28
140		-	stated in § 9–105 of this article. 29
	175	+	(ii) if a government agency certifies that the property requires, or 17
	176	+	shall require, substantial repair to comply with applicable business codes, as early as 60 18
	177	+	days from the date of the sale; 19
141	178
142		-	(2) The ~~MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 30~~
143		-	~~governing body~~ of ~~a county or municipal corporation may withhold from sale a dwelling 31~~
144		-	~~owned by a homeowner OR OCCUPIED BY AN HE IR OF A DECEASED HOM EOWNER who~~ is ~~32 4 HOUSE BILL 59~~
	179	+	(7) a statement that if the property is redeemed before an action to 20
	180	+	foreclose the right of redemption is filed, the amount that shall be paid to redeem the 21
	181	+	property is: 22
145	182
	183	+	(i) the total lien amount on the property at the time of sale, with 23
	184	+	interest; 24
146	185
147		-	~~low–income~~, ~~at least 65 years old~~, ~~or disabled if~~ the ~~homeowner OR HEIR meets eligibility 1~~
148		-	~~criteria established by the county or municipal corporation. 2~~
	186	+	(ii) any taxes, interest, and penalties paid by the holder of the 25
	187	+	certificate of sale; and 26
149	188
150		-	(J) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 3
151		-	GOVERNING BODY OF A COUNTY SHALL ESTABLI SH A REGISTRY FOR IN TERESTED 4
152		-	PARTIES OR THE TAX SALE OMBUDSMAN TO DESIGNAT E A PROPERTY TO BE 5
153		-	WITHHELD FROM TAX SALE IN ACCORDANCE WITH THIS SECTION. 6
154		-
155		-	(2) ON REQUEST OF THE MAYOR AND CITY COUNCIL OF BALTIMORE 7
156		-	CITY OR THE GOVERNING BODY OF A COUNTY , THE DEPARTMENT SHALL PROV IDE 8
157		-	ASSISTANCE IN CREATI NG AND MAINTAINING T HE REGISTRY REQUIRED UNDER 9
158		-	PARAGRAP H (1) OF THIS SUBSECTION . 10
159		-
160		-	14–817. 11
161		-
162		-	(c) (1) Abandoned property consisting of either a vacant lot or improved 12
163		-	property cited as vacant and unfit for habitation on a housing or building violation notice 13
164		-	may be sold for a sum less than the total amount of: 14
165		-
166		-	(i) all taxes on the property that are certified to the collector under 15
167		-	§ 14–810 of this subtitle; 16
168		-
169		-	(ii) interest and penalties on the taxes; and 17
170		-
171		-	(iii) expenses incurred in making the sale. 18
172		-
173		-	(2) The collector shall establish a minimum bid for abandoned property 19
174		-	sold under this subsection. 20
175		-
176		-	(3) The person responsible for the taxes prior to the sale shall remain liable 21
177		-	to the collector for the difference between the amount received in the tax sale under this 22
178		-	section and the taxes, interest, penalties, and expenses remaining after the sale. 23
179		-
180		-	(4) The balance remaining after the tax sale shall be included in the 24
181		-	amount necessary to redeem the property under § 14–828 of this subtitle. 25
182		-
183		-	(5) In a proceeding brought by the governing body of a county or municipal 26
184		-	corporation to foreclose the right of redemption under this subtitle, the complaint may 27
185		-	request a judgment for the county or municipal corporation in the amount of the balance. 28
186		-
187		-	(6) The balance remaining after the tax sale is no longer a lien on the 29
188		-	property when: 30
189		-
190		-	(i) a judgment is entered foreclosing the owner’s right of 31
191		-	redemption; 32
	189	+	(iii) FOR PROPERTY THAT IS NOT OWNER –OCCUPIED 27
	190	+	RESIDENTIAL PROPERTY , any DELINQUENT taxes, interest, and penalties accruing after 28
	191	+	the date of the tax sale; 29
192	192		HOUSE BILL 59 5
193		-
194		-
195		-	(ii) the deed is recorded; and 1
196		-
197		-	(iii) all liens accruing subsequent to the date of sale are paid in full. 2
198		-
199		-	(7) The governing body of a county or municipal corporation may institute 3
200		-	a separate action to collect the balance at any time within 7 years after the tax sale if the 4
201		-	plaintiff is a private purchaser. 5
202		-
203		-	14–817.1. 6
204		-
205		-	(a) Within 60 days after a property is sold at a tax sale, the collector shall send to 7
206		-	the person who last appears as owner of the property on the collector’s tax roll, at the last 8
207		-	address shown on the tax roll, a notice that includes: 9
208		-
209		-	(1) a statement that the property has been sold to satisfy unpaid taxes; 10
210		-
211		-	(2) the date of the tax sale; 11
212		-
213		-	(3) the amount of the highest bid; 12
214		-
215		-	(4) the lien amount on the property at the time of sale; 13
216		-
217		-	(5) a statement that the owner has the right to redeem the property until 14
218		-	a court forecloses that right; 15
219		-
220		-	(6) a statement that the purchaser of the property may institute an action 16
221		-	to foreclose the property: 17
222		-
223		-	(i) as early as 6 months from the date of the sale; or 18
224		-
225		-	(ii) if a government agency certifies that the property requires, or 19
226		-	shall require, substantial repair to comply with applicable business codes, as early as 60 20
227		-	days from the date of the sale; 21
228		-
229		-	(7) a statement that if the property is redeemed before an action to 22
230		-	foreclose the right of redemption is filed, the amount that shall be paid to redeem the 23
231		-	property is: 24
232		-
233		-	(i) the total lien amount on the property at the time of sale, with 25
234		-	interest; 26
235		-
236		-	(ii) any taxes, interest, and penalties paid by the holder of the 27
237		-	certificate of sale; and 28
238		-
239		-	(iii) FOR PROPERTY THAT IS NOT OWNER –OCCUPIED 29
240		-	RESIDENTIAL PROPERTY , any DELINQUENT taxes, interest, and penalties accruing after 30
241		-	the date of the tax sale; 31 6 HOUSE BILL 59
242		-
243	193
244	194
245	195		(8) a statement that, if the property is redeemed more than 4 months after 1
246	196		the date of the tax sale, and before an action to foreclose the right of redemption is filed, 2
247	197		the holder of the certificate of sale may be reimbursed for: 3
248	198
249	199		(i) attorney’s fees for recording the certificate of sale; 4
250	200
251	201		(ii) a title search fee, not to exceed $250; and 5
252	202
253	203		(iii) reasonable attorney’s fees, not to exceed $500; 6
254	204
255	205		(9) a statement that, if the property is redeemed after an action to foreclose 7
256	206		the right of redemption has been filed, the amount that shall be paid to redeem the property 8
257	207		is the sum of: 9
258	208
259	209		(i) the total lien amount on the property at the time of sale, with 10
260	210		interest; 11
261	211
262	212		(ii) any taxes, interest, and penalties paid by the holder of the 12
263	213		certificate of sale; 13
264	214
265	215		(iii) FOR PROPERTY THAT IS NOT OWNE R–OCCUPIED 14
266	216		RESIDENTIAL PROPERTY , any DELINQUENT taxes, interest, and penalties accruing after 15
267	217		the date of the tax sale; and 16
268	218
269	219		(iv) attorney’s fees and expenses to which the holder of the certificate 17
270	220		of sale may be entitled under § 14–843(a)(4) and (5) of this subtitle; and 18
271	221
272	222		(10) the provisions of § 14–843(a) of this subtitle, reproduced as they appear 19
273	223		in the Code. 20
274	224
275	225		14–820. 21
276	226
277	227		(a) The collector shall deliver to the purchaser a certificate of sale under the 22
278	228		collector’s hand and seal, or by the collector’s authorized facsimile signature, acknowledged 23
279	229		by the collector as a conveyance of land, which certificate shall set forth: 24
280	230
281	231		(1) that the property described in it was sold by the collector to the 25
282	232		purchaser; 26
283	233
284	234		(2) the date of the sale; 27
285	235
286	236		(3) the amount for which the property was sold; 28
287	237
288	238		(4) the total amount of taxes due on the property at the time of sale 29
289	239		together with interest, penalties and expenses incurred in making the sale; 30
290		-	HOUSE BILL 59 7
	240	+	6 HOUSE BILL 59
291	241
292	242
293	243		(5) a description of the property in substantially the same form as the 1
294	244		description appearing on the collector’s tax roll. If the property is unimproved or has no 2
295	245		street number, and the collector has procured a description of the property from the county 3
296	246		or municipal corporation surveyor, this description shall be included in the certificate of 4
297	247		sale. In Garrett County a copy of the description as required by § 14–813(f) of this subtitle, 5
298	248		as that section relates specifically to Garrett County, shall be included in the certificate of 6
299	249		sale; 7
300	250
301	251		(6) a statement that the rate of redemption is 6% a year, except as provided 8
302	252		in subsection (b) of this section; 9
303	253
304	254		(7) the time when an action to foreclose the right of redemption may be 10
305	255		instituted; and 11
306	256
307	257		(8) (i) that the certificate will be void unless foreclosure proceedings are 12
308	258		brought within 2 years from the date of the certificate; or 13
309	259
310	260		(ii) that, unless foreclosure proceedings are brought within 3 months 14
311	261		from the date of the certificate to any abandoned property [in Baltimore City] sold under § 15
312	262		14–817(c)(1) of this subtitle with a minimum bid less than the lien amount, the certificate: 16
313	263
314	264		1. is void as to a private purchaser; and 17
315	265
316	266		2. reverts to the Mayor and City Council OF BALTIMORE 18
317	267		CITY OR THE GOVERNING BODY OF A COUNTY , OR IF THE PROPERTY I S LOCATED IN 19
318	268		A MUNICIPAL CORPORAT ION, THE GOVERNING BODY O F THE MUNICIPAL 20
319	269		CORPORATION for a period of 2 years from the date of the tax sale. 21
320	270
321	271		(b) [The] SUBJECT TO SUBSECTION (C) OF THIS SECTION , THE rate of 22
322	272		redemption is 6% a year except: 23
323	273
324	274		(1) in Allegany County the rate is 6% a year or as fixed by the County 24
325	275		Commissioners; 25
326	276
327	277		(2) in Anne Arundel County the rate is 6% a year or as fixed by a law of the 26
328	278		County Council; 27
329	279
330	280		(3) in Baltimore City the rate is 6% a year or as fixed by a law of the City 28
331	281		Council; 29
332	282
333	283		(4) in Baltimore County the rate is 6% a year or as fixed by a law of the 30
334	284		County Council; 31
335	285
336	286		(5) in Cecil County the rate is 6% a year or as fixed by the County 32
337	287		Commissioners; 33
338		-	8 HOUSE BILL 59
	288	+	HOUSE BILL 59 7
339	289
340	290
341	291		(6) in Calvert County the rate is 10% a year or as fixed by the County 1
342	292		Commissioners; 2
343	293
344	294		(7) in Caroline County the rate is 10% a year or as fixed by the County 3
345	295		Commissioners; 4
346	296
347	297		(8) in Carroll County the rate is 14% a year or as fixed by the County 5
348	298		Commissioners; 6
349	299
350	300		(9) in Dorchester County the rate is 10% a year or as fixed by the County 7
351	301		Commissioners; 8
352	302
353	303		(10) in Frederick County the rate is 6% a year or as fixed by the governing 9
354	304		body of Frederick County; 10
355	305
356	306		(11) in Garrett County the rate is 10% a year or as fixed by the County 11
357	307		Commissioners; 12
358	308
359	309		(12) in Harford County the rate is 6% a year or as fixed by a law of the 13
360	310		County Council; 14
361	311
362	312		(13) in Howard County the rate is 6% a year or as fixed by a law of the 15
363	313		County Council; 16
364	314
365	315		(14) in Kent County the rate is 6% a year or as fixed by the County 17
366	316		Commissioners; 18
367	317
368	318		(15) in Montgomery County the rate is 6% a year or as fixed by a law of the 19
369	319		County Council; 20
370	320
371	321		(16) in Prince George’s County the rate is 6% a year or as fixed by a law of 21
372	322		the County Council; 22
373	323
374	324		(17) in Queen Anne’s County the rate is 6% a year or as fixed by the County 23
375	325		Commissioners; 24
376	326
377	327		(18) in Somerset County, Charles County, Wicomico County, and Worcester 25
378	328		County the rate is 6% a year or as fixed by the County Commissioners or by a law of the 26
379	329		County Council; 27
380	330
381	331		(19) in Talbot County the rate is 6% a year or as fixed by a law of the County 28
382	332		Council; and 29
383	333
384	334		(20) in Washington County the rate is 6% a year or as fixed by the County 30
385	335		Commissioners. 31
386		-	HOUSE BILL 59 9
	336	+	8 HOUSE BILL 59
387	337
388	338
389	339		(C) FOR OWNER –OCCUPIED RESIDENTIAL PROPERTY, THE RATE OF 1
390	340		REDEMPTION MAY NOT E XCEED 10% A YEAR. 2
391	341
392	342		[(c)] (D) The certificate of sale shall be in substantially the following form: 3
393	343
394	344		“I, .........., Collector of Taxes for the State of Maryland and the .......... of ........, certify that 4
395	345		on ......., 20...., I sold to ........, at public auction for the sum of .......... Dollars and ......... Cents, 5
396	346		of which ...... Dollars has been paid, the property in ......... described as ........ and assessed 6
397	347		to ......... The property described in this certificate is subject to redemption. On redemption 7
398	348		the holder of the certificate will be refunded the sums paid on account of the purchase price 8
399	349		together with interest at the rate of 6% a year from the date of payment to the date of 9
400	350		redemption (except as stated in [subsection (b) of] § 14–820 of the Tax – Property Article 10
401	351		of the Annotated Code of Maryland), together with all other amounts specified by Chapter 11
402	352		761 of the Acts of 1943, and acts that amend that chapter. The balance due on account of 12
403	353		the purchase price and all taxes, together with interest and penalties on the taxes, accruing 13
404	354		after the date of sale, must be paid to the Collector before a deed can be delivered to the 14
405	355		purchaser. After .........., 20...., a proceeding can be brought to foreclose all rights of 15
406	356		redemption in the property. This certificate will be void unless such a proceeding is brought 16
407	357		within 2 years from the date of this certificate, except that [in Baltimore City,] with respect 17
408	358		to any abandoned property sold under § 14–817(c) of the Tax – Property Article of the 18
409	359		Annotated Code of Maryland with a minimum bid less than the lien amount, the certificate 19
410	360		will revert to the Mayor and City Council OF BALTIMORE CITY OR THE GOVERNING 20
411	361		BODY OF THE COUNTY , OR IF THE PROPERTY I S LOCATED IN A MUNIC IPAL 21
412	362		CORPORATION , THE GOVERNING BODY O F THE MUNICIPAL CORP ORATION, and will 22
413	363		be void as to the private purchaser at tax sale unless such a proceeding is brought within 3 23
414	364		months from the date of the certificate. 24
415	365
416	366		Witness my hand and seal, this ....... day of ......, 20............... 25
417	367		............................... 26
418	368		Collector” 27
419	369
420	370		(To be followed by acknowledgment). 28
421	371
422	372		14–828. 29
423	373
424	374		(a) (1) If the property is redeemed, the person redeeming shall pay the 30
425	375		collector: 31
426	376
427	377		(i) the total lien amount paid at the tax sale for the property 32
428	378		together with interest; 33
429	379
430	380		(ii) any taxes, interest, and penalties paid by any holder of the 34
431	381		certificate of sale; 35
432	382
433	383		(iii) except as provided under paragraph (2) of this subsection, any 36
434		-	delinquent taxes, interest, and penalties accruing after the date of the tax sale; 37 10 HOUSE BILL 59
	384	+	delinquent taxes, interest, and penalties accruing after the date of the tax sale; 37 HOUSE BILL 59 9
435	385
436	386
437	387
438	388		(iv) in the manner and by the terms required by the collector, any 1
439	389		expenses or fees for which the plaintiff or the holder of a certificate of sale is entitled to 2
440	390		reimbursement under § 14–843 of this subtitle; and 3
441	391
442	392		(v) for vacant and abandoned property sold under § 14–817 of this 4
443	393		subtitle for a sum less than the amount due, the difference between the price paid and the 5
444	394		unpaid taxes, interest, penalties, and expenses. 6
445	395
446	396		(2) For owner–occupied residential property [in Baltimore City], any taxes, 7
447	397		interest, and penalties accruing after the date of the tax sale may not be included in the 8
448	398		redemption payment required under paragraph (1) of this subsection. 9
449	399
450	400		14–833. 10
451	401
452	402		(a) (2) Except as provided in subsections (a–1), (e), (f), and (g) of this section, 11
453	403		at any time after [9] 12 months from the date of sale of owner–occupied residential 12
454	404		property, a holder of any certificate of sale may file a complaint to foreclose all rights of 13
455	405		redemption of the property to which the certificate relates. 14
456	406
457	407		(a–1) (3) The notices required under this subsection shall include at least the 15
458	408		following: 16
459	409
460	410		(v) a statement that if the property is redeemed before an action to 17
461	411		foreclose the right of redemption is filed, the amount that shall be paid to redeem the 18
462	412		property is: 19
463	413
464	414		3. FOR PROPERTY THAT IS NOT OWNER –OCCUPIED 20
465	415		RESIDENTIAL PROPERTY , any delinquent taxes, interest, and penalties accruing after the 21
466	416		date of the tax sale; and 22
467	417
468	418		(vi) a statement that if the property is redeemed after an action to 23
469	419		foreclose the right of redemption has been filed, the amount that shall be paid to redeem 24
470	420		the property is the sum of: 25
471	421
472	422		3. FOR PROPERTY THAT IS NOT OWNER –OCCUPIED 26
473	423		RESIDENTIAL PROPERTY , any delinquent taxes, interest, and penalties accruing after the 27
474	424		date of the tax sale; and 28
475	425
476	426		(4) (i) 2. For owner–occupied residential property, the first of the 29
477	427		two notices required under this subsection may not be sent until [7] 10 months after the 30
478	428		date of sale. 31
479	429
480	430		(c) (2) A certificate for abandoned property sold under § 14–817(c) of this 32
481	431		subtitle with a minimum bid less than the lien amount reverts to the MAYOR AND CITY 33
482		-	COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF THE county or, IF THE 34 HOUSE BILL 59 11
	432	+	COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF THE county or, IF THE 34 10 HOUSE BILL 59
483	433
484	434
485	435		PROPERTY IS LOCATED IN A MUNICIPAL CORPO RATION, THE GOVERNING BODY O F 1
486	436		THE municipal corporation and is void as to the private purchaser at tax sale unless: 2
487	437
488	438		(i) a proceeding to foreclose the right of redemption is filed within 3 3
489	439		months of the date of the certificate of sale; and 4
490	440
491	441		(ii) unless the holder is granted an extension by the court due to a 5
492	442		showing of extraordinary circumstances beyond the certificate holder’s control, the holder 6
493	443		secures a decree from the circuit court in which the foreclosure proceeding was filed within 7
494	444		18 months from the date of the filing of the foreclosure proceeding. 8
495	445
496	446		(d) (2) If a certificate for abandoned property reverts to the Mayor and City 9
497	447		Council of Baltimore City OR THE GOVERNING BOD Y OF A COUNTY OR , IF THE 10
498	448		PROPERTY IS LOCATED IN A MUNICIPAL CORPO RATION, THE GOVERNING BODY O F 11
499	449		THE MUNICIPAL CORPOR ATION under this section, the Mayor and City Council OR THE 12
500	450		GOVERNING BODY may: 13
501	451
502	452		(i) file a foreclosure proceeding in its own name; or 14
503	453
504	454		(ii) 1. resell the certificate; and 15
505	455
506	456		2. apply all money received on account of the sale to any 16
507	457		outstanding balance remaining after the sale on the tax debt owed by the previous owner 17
508	458		of the abandoned property. 18
509	459
510	460		14–836. 19
511	461
512	462		(b) (4) (i) Notwithstanding the provision of paragraph (3) of this 20
513	463		subsection, the plaintiff shall send written notice of the proceeding to: 21
514	464
515	465		1. all persons having a recorded interest, claim, or lien, 22
516	466		including a judgment, who have not been made a defendant in the proceeding, and, if the 23
517	467		subject property is part of a homeowners association or condominium association, to the 24
518	468		homeowners association or condominium association governing the property, at the last 25
519	469		reasonably ascertainable address; [and] 26
520	470
521	471		2. each tenant of the subject property whose identity is 27
522	472		known to the plaintiff, at the tenant’s last reasonably ascertainable address; AND 28
523	473
524	474		3. IF THE SUBJECT PROPE RTY IS OWNER –OCCUPIED, 29
525	475		THE STATE TAX SALE OMBUDSMAN . 30
526	476
527	477		(7) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, after 31
528	478		issuance of the judgment foreclosing right of redemption and at least [30] 90 days before 32
529		-	taking possession of the property, the plaintiff shall give any tenant of the property written 33 12 HOUSE BILL 59
	479	+	taking possession of the property, the plaintiff shall give any tenant of the property written 33 HOUSE BILL 59 11
530	480
531	481
532	482		notice of the plaintiff’s intention to obtain possession of the property and that the tenant 1
533	483		must vacate the property within [30] 90 days after the notice. 2
534	484
535	485		(ii) During the [30–day] 90–DAY period immediately following 3
536	486		issuance of the judgment foreclosing the right of redemption, the plaintiff may apply for, 4
537	487		process, and obtain, but not execute upon, a writ for possession of the property. 5
538	488
539	489		(iii) The notice shall be sent: 6
540	490
541	491		1. by first–class mail, postage prepaid, CERTIFICATE OF 7
542	492		MAILING, bearing a postmark from the United States Postal Service addressed to the 8
543	493		tenant by name if the identity of the tenant is known to the plaintiff, and addressed to 9
544	494		“occupant” if the identity of the tenant is not known; 10
545	495
546	496		2. to each separately leased area of the property that the 11
547	497		plaintiff can reasonably ascertain is occupied; and 12
548	498
549	499		3. in an envelope prominently marked on the outside with 13
550	500		the following phrase “Notice of Taking Possession of Property”. 14
551	501
552	502		(IV) THE NOTICE REQUIRED U NDER THIS PARAGRAPH SHALL 15
553		-	ALSO BE POSTED ON TH E PROPERTY WITHIN 1 DAY 10 5 DAYS OF FIRST BEING SENT 16
	503	+	ALSO BE POSTED ON TH E PROPERTY WITHIN 1 DAY 10 DAYS OF FIRST BEING SENT 16
554	504		UNDER SUBPARAGRAPH (III) OF THIS PARAGRAPH . 17
555	505
556	506		14–843. 18
557	507
558	508		(a) (4) (ii) For owner–occupied residential property, if an action to foreclose 19
559	509		the right of redemption has not been filed, and the property is redeemed more than [7] 10 20
560	510		months after the date of the tax sale, the holder of a certificate of sale may be reimbursed 21
561	511		for the following expenses actually incurred: 22
562	512
563	513		1. costs for recording the certificate of sale; 23
564	514
565	515		2. a title search fee, not to exceed $250; 24
566	516
567	517		3. the postage and certified mailing costs for the notices 25
568	518		required under § 14–833(a–1) of this subtitle; and 26
569	519
570	520		4. reasonable attorney’s fees, not to exceed $500. 27
571	521
572	522		(b) (1) (ii) For owner–occupied residential property, the plaintiff or holder 28
573	523		of a certificate of sale may not be reimbursed for expenses incurred within [7] 10 months 29
574	524		after the date of sale. 30
575	525
576	526		14–844. 31
577		-	HOUSE BILL 59 13
	527	+	12 HOUSE BILL 59
578	528
579	529
580	530		(e) [In Baltimore City where] WHERE abandoned property has been sold for a 1
581	531		sum less than the amount due under § 14–817 of this subtitle, in a foreclosure proceeding 2
582	532		brought by the Mayor and City Council OF BALTIMORE CITY OR THE GOVERNING BODY 3
583	533		OF A COUNTY OR MUNICIPAL COR PORATION, the final order may include a judgment in 4
584	534		favor of the city, COUNTY, OR MUNICIPAL CORPORA TION and against the person liable 5
585	535		for taxes prior to the sale, in the amount of the unpaid taxes, interest, penalties, and 6
586	536		expenses otherwise due in a tax sale. 7
587	537
588	538		14–845. 8
589	539
590	540		(c) [In Baltimore City, with] WITH respect to abandoned property that is subject 9
591	541		to § 14–817(c) of this subtitle: 10
592	542
593	543		(1) a defendant or any person described in § 14–836(b)(1) or (4)(i) of this 11
594	544		subtitle may file an action to recover damages on the ground of inadequate notice within 3 12
595	545		years after the date of judgment foreclosing rights of redemption; 13
596	546
597	547		(2) damages in an action under item (1) of this subsection may not exceed 14
598	548		the fair market value of that person’s interest in the property at the time of the sale; and 15
599	549
600	550		(3) a person may not file to reopen a judgment foreclosing rights of 16
601	551		redemption based on inadequate notice. 17
602	552
603	553		14–849.1. 18
604	554
605	555		(a) [In Baltimore City, the Mayor and City Council] THE MAYOR AND CITY 19
606	556		COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF A COUNTY OR 20
607	557		MUNICIPAL CORPORATIO N may not sell a property to enforce a lien for unpaid charges 21
608	558		for water and sewer service unless: 22
609	559
610	560		(1) the lien is for at least $350; 23
611	561
612	562		(2) the property is not: 24
613	563
614	564		(i) a residential property; or 25
615	565
616	566		(ii) real property that is exempt from taxation under § 7–204(1) or 26
617	567		(2) of this article; and 27
618	568
619	569		(3) the unpaid charges for water and sewer service are at least 3 quarters 28
620	570		in arrears. 29
621	571
622	572		(b) Notwithstanding subsection (a) of this section, the Mayor and City Council OF 30
623	573		BALTIMORE CITY OR THE GOVERNING BODY OF A COUNTY OR MUNICIPAL 31
624		-	CORPORATION may enforce a lien on a property other than residential property or real 32 14 HOUSE BILL 59
	574	+	CORPORATION may enforce a lien on a property other than residential property or real 32 HOUSE BILL 59 13
625	575
626	576
627	577		property that is exempt from taxation under § 7–204(1) or (2) of this article for unpaid water 1
628	578		and sewer service that is less than $350 if the property is being sold to enforce another lien. 2
629	579
630	580		(c) This section does not affect any other right or remedy of Baltimore City, A 3
631	581		COUNTY, OR A MUNICIPAL CORPO RATION for the collection of a water and sewer service 4
632	582		charge. 5
633	583
634	584		14–879. 6
635	585
636	586		(a) (1) The Department shall conduct an annual survey of each county that 7
637	587		conducts a tax sale under Part III of this subtitle to obtain the information specified in this 8
638	588		section. 9
639	589
640	590		(2) Each county shall provide the Department all the information specified 10
641	591		in this section on the form that the Department provides. 11
642	592
643	593		(3) The Department may not disburse or authorize the disbursement of any 12
644	594		funds to a county under this article if the county has not provided all the information 13
645	595		specified in this section. 14
646	596
647	597		(4) EACH COUNTY SHALL MAI NTAIN A RECORD OF TH E INFORMATION 15
648	598		SPECIFIED IN THIS SE CTION FOR AT LEAST 3 YEARS AFTER THE DATE OF A TAX SALE. 16
649	599
650	600		14–883. 17
651	601
652	602		(a) In this part the following words have the meanings indicated. 18
653	603
654	604		(d) “Homeowner” [has the meaning stated] MEANS: 19
655	605
656	606		(1) A HOMEOWNER AS DEFIN ED in § 9–105 of this article; OR 20
657	607
658	608		(2) IF A HOMEOWNER AS DE FINED IN § 9–105 OF THIS ARTICLE IS 21
659	609		DECEASED: 22
660	610
661	611		(I) THE ESTATE OF THE HO MEOWNER; 23
662	612
663	613		(II) THE PERSONAL REPRESE NTATIVE OF THE HOMEOWNER ; OR 24
664	614
665	615		(III) AN HEIR OR LEGATEE O F THE HOMEOWNER WHO IS 25
666	616		ENTITLED TO INHERIT THE HOMEOWNER ’S DWELLING. 26
667	617
668	618		14–884. 27
669	619
670	620		(a) There is a Homeowner Protection Program administered by the Ombudsman 28
671	621		in the Department. 29
672		-	HOUSE BILL 59 15
	622	+	14 HOUSE BILL 59
673	623
674	624
675	625		(b) The purpose of the Program is to divert vulnerable homeowners from the 1
676	626		private tax lien sale process under Part III of this subtitle into an alternative program with 2
677	627		the primary purpose of: 3
678	628
679	629		(1) minimizing tax collection costs to homeowners; 4
680	630
681	631		(2) assisting homeowners to pay their taxes; and 5
682	632
683	633		(3) allowing homeowners to remain in their homes. 6
684	634
685	635		SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 7
686	636		apply only prospectively and may not be applied or interpreted to have any effect on or 8
687	637		application to any tax sale certificate issued before the effective date of this Act. 9
688	638
689	639		SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
690	640		January 1, 2026. 11
691	641
692	642
693	643
694	644
	645	+
	646	+
695	647		Approved:
696	648		________________________________________________________________________________
697	649		Governor.
698	650		________________________________________________________________________________
699	651		Speaker of the House of Delegates.
700	652		________________________________________________________________________________
701	653		President of the Senate.