Modifies provisions relating to deteriorated or abandoned property
The impact of SB388 is notably centered around the operations of land bank agencies, which are empowered to acquire real property through sales stemming from unpaid taxes. The bill provides that land bank agencies will be exempt from taxation on the income generated from properties they own, mirroring the treatment of publicly owned real estate. These provisions are crucial as they determine how acquired properties will be managed and disposed of, alongside ensuring that tax obligations are met when properties are sold. Furthermore, the land bank agency is mandated to keep detailed records of real estate transactions which are accessible for public scrutiny, promoting transparency in dealings related to tax-delinquent properties.
Senate Bill 388 introduces significant modifications to the process surrounding the collection of delinquent property taxes within the state of Missouri. This legislation repeals certain sections of existing law and enacts new provisions outlining how county collectors should handle tax sales. Notably, the bill specifies that property sales for taxes will commence as scheduled and continue until all lands are either sold or deemed unsellable. Moreover, it introduces specific eligibility criteria for prospective bidders, strengthening accountability measures among those participating in tax sales by requiring bidders to affirm they are not delinquent on any tax payments, except for those pertaining to the property being auctioned.
One point of contention noted in discussions surrounding SB388 stemmed from concerns about the implications of granting land bank agencies extensive powers over delinquent properties. Critics argue that the bill could lead to potential abuses or mismanagement since it limits competing bids from those indebted to the state. Additionally, the requirement that only residents can participate in bidding may inadvertently exclude non-resident investors who could contribute positively to local property revival efforts. This aspect, while intended to curb delinquency, has raised questions about equity and fairness in the bidding process, sparking debates among lawmakers and stakeholders.