FIRST REGULAR SESSION
SENATE BILL NO. 712
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NICOLA.
2766S.02I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 140.120, 140.250, 140.340, and 140.405, RSMo, and to enact in lieu thereof
four new sections relating to delinquent property taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 140.120, 140.250, 140.340, and 1
140.405, RSMo, are repealed and four new sections enacted in 2
lieu thereof, to be known as sections 140.120, 140.250, 140.340, 3
and 140.405, to read as follows:4
140.120. 1. If it appears to any county commissi on, 1
that any tract of land or town lot contained in the back tax 2
book is not worth the amount of taxes, interest and cost due 3
thereon, as charged in the back tax book or that the same 4
would not sell for the amount of the taxes, interest and 5
cost, the commission may compromise the taxes with the owner 6
of the tract or lot. Upon payment to the collector of the 7
amount agreed upon, a certificate of redemption shall be 8
issued under the seal of the commission, which shall release 9
the lands from the lien of the state and all taxes due 10
thereon, as charged on the back tax book. If the commission 11
compromises and accepts a less amount than appears to be due 12
on any tract of land or town lot, as charged on said back 13
tax book, the commission shall order the amount so paid to 14
be distributed to the various funds to which the taxes are 15
due, in proportion as the amount received bears to the whole 16
amount charged against the tract or lot. 17 SB 712 2
2. Prior to commencing the sale of any property to 18
satisfy delinquent taxes, interest, and penalties, the 19
collector shall, by registered mail, notify the property 20
owner of such property that the property owner may negotiate 21
a compromise on any delinquent taxes, interest, and 22
penalties. Notwithstanding any provision o f law to the 23
contrary, any such compromise shall not include a reduction 24
in the amount of property tax owed, but may include an 25
agreement to pay such amount in installments over a period 26
not to exceed three years, and may include, at the 27
collector's discretion, a waiver of all or part of interest 28
and penalties owned. If no such agreement is in place by 29
April first, the collector may proceed to sell the property 30
pursuant to this chapter. 31
140.250. 1. Whenever any lands have been or shall 1
hereafter be offered for sale for delinquent taxes, 2
interest, penalty and costs by the collector of the proper 3
county for any two successive years and no person shall have 4
bid therefor a sum equal to the delinquent taxes thereon, 5
interest, penalty and costs provided by law, then such 6
county collector shall at the next regular tax sale of lands 7
for delinquent taxes sell same to the highest bidder, except 8
the highest bid shall not be less than the sum equal to the 9
delinquent taxes, interest, penalties, and costs, and , 10
except as provided in subsection 6 of section 140.340, there 11
shall be a ninety-day period of redemption from such sales 12
as specified in section 140.405. 13
2. A certificate of purchase shall be issued as to 14
such sales, and the purchaser at such sales shall be 15
entitled to the issuance and delivery of a collector's deed 16
upon completion of title search action as specified in 17
section 140.405. 18 SB 712 3
3. If any lands or lots are not sold at such third 19
offering, then the colle ctor shall advertise or offer such 20
lands or lots for sale once every thirty days. 21
4. A purchaser at any sale subsequent to the third 22
offering of any land or lots, whether by the collector or a 23
trustee as provided in section 140.260, shall be entit led to 24
the immediate issuance and delivery of a collector's deed 25
and there shall be no period of redemption from such post - 26
third year sales; provided, however, before any purchaser at 27
a sale to which this section is applicable shall be entitled 28
to a collector's deed it shall be the duty of the collector 29
to demand, and the purchaser to pay, in addition to the 30
purchaser's bid, all taxes due and unpaid on such lands or 31
lots that become due and payable on such lands or lots 32
subsequent to the date of th e taxes included in such 33
advertisement and sale. The collector's deed or trustee's 34
deed shall have priority over all other liens or 35
encumbrances on the property sold except for real property 36
taxes. 37
5. A purchaser at any sale subsequent to the th ird 38
offering of any land or lots, whether by the collector or a 39
trustee as provided in section 140.260, may elect to proceed 40
under subsection 1 of this section and subsection 6 of 41
section 140.405 by giving notice to the collector prior to 42
the issuance of a collector's deed. 43
6. In the event the real purchaser at any sale to 44
which this section is applicable shall be the owner of the 45
lands or lots purchased, or shall be obligated to pay the 46
taxes for the nonpayment of which such lands or lots wer e 47
sold, then no collector's deed shall be issued to such 48
purchaser, or to anyone acting for or on behalf of such 49
purchaser, without payment to the collector of such 50 SB 712 4
additional amount as will discharge in full all delinquent 51
taxes, penalty, interest an d costs. 52
140.340. 1. Upon paying the reasonable and customary 1
costs of sale to the county collector for the use of the 2
purchaser, his or her heirs, successors, or assigns; the 3
owner; lienholder; or occupant of any land or lot sold f or 4
taxes, or any other persons having an interest therein, 5
shall, except as provided in subsection 6 of this section, 6
have the absolute right to redeem the same at any time 7
during the one year next ensuing and shall continue to have 8
a defeasible right to redeem the same until such time as the 9
tax sale purchaser acquires the deed, at which time the 10
right to redeem shall expire, provided upon the expiration 11
of the lien evidenced by a certificate of purchase under 12
section 140.410 no redemption shall b e required. 13
2. The reasonable and customary costs of sale include 14
all costs incurred in selling and foreclosing tax liens 15
under this chapter, and such reasonable and customary costs 16
shall include the following: the full sum of the purchase 17
money named in the certificate of purchase and all the costs 18
of the sale, including the cost to record the certificate of 19
purchase as required in section 140.290, the fee necessary 20
for the collector to record the release of such certificate 21
of purchase, and the reasonable and customary cost of the 22
title search and postage costs of notification required in 23
sections 140.150 to 140.405, together with interest at the 24
rate specified in such certificate, not to exceed ten 25
percent annually, except on a sum paid by a purchaser in 26
excess of the delinquent taxes due plus costs of the sale 27
incurred by the collector, no interest shall be owing on the 28
excess amount, with all subsequent taxes which have been 29
paid thereon by the purchaser, his or her heirs or assign s 30 SB 712 5
with interest at the rate of eight percent per annum on such 31
taxes subsequently paid, and in addition thereto the person 32
redeeming any land shall pay the costs incident to entry of 33
recital of such redemption; provided, however, that no costs 34
incurred by tax sale purchasers in providing notice of tax 35
sale redemption rights required by law shall be reimbursable 36
as a reasonable and customary cost of sale unless such costs 37
are incurred after March first following the date of 38
purchase of the tax sale certificate by said tax sale 39
purchaser at a first or second offering delinquent tax sale. 40
3. Upon deposit with the county collector of the 41
amount necessary to redeem as herein provided, it shall be 42
the duty of the county collector to mail to the p urchaser, 43
his or her heirs or assigns, at the last post office address 44
if known, and if not known, then to the address of the 45
purchaser as shown in the record of the certificate of 46
purchase, notice of such deposit for redemption. 47
4. Such notice, given as herein provided, shall stop 48
payment to the purchaser, his or her heirs or assigns of any 49
further interest or penalty. 50
5. The reasonable and customary costs of sale needed 51
to redeem any land or lot sold for taxes under this section 52
shall be determined by the collector. 53
6. Notwithstanding any provision of law to the 54
contrary, and in the absence of a compromise entered into 55
pursuant to subsection 2 of section 140.120, for all 56
property actually occupied by the owner of record as the 57
primary residence and that is sold for delinquent taxes on 58
or after January 1, 2026, the purchaser of such delinquent 59
property at auction shall not acquire the deed to or take 60
possession of the delinquent property unless the owner of 61
record has transferred ownership pursuant to subsection 3 of 62 SB 712 6
section 140.405 or has otherwise vacated the property for a 63
period of thirty days or more. 64
140.405. 1. Any person purchasing property at a 1
delinquent land tax auction shall not acquire the deed to 2
the real estate, as provided for in section 140.250 or 3
140.420, until the person meets the requirements of this 4
section, except that such requirements shall not apply to 5
post-third-year sales, which shall be conducted under 6
subsection 4 of section 140.250. The purchaser shall obtain 7
a title search report from a licensed attorney or licensed 8
title company detailing the ownership and encumbrances on 9
the property. 10
2. At least ninety days prior to the date when a 11
purchaser is authorized to acquire the deed, the purchaser 12
shall notify the owner of record and any person who holds a 13
publicly recorded unreleased deed of trust, mortgage, lease, 14
lien, judgment, or any other publicly recorded claim upon 15
that real estate of such person's rig ht to redeem the 16
property. Notice shall be sent by both first class mail and 17
certified mail return receipt requested to such person's 18
last known available address. If the certified mail return 19
receipt is returned signed, the first class mail notice i s 20
not returned, the first class mail notice is refused where 21
noted by the United States Postal Service, or any 22
combination thereof, notice shall be presumed received by 23
the recipient. At the conclusion of the applicable 24
redemption period, the purchas er shall make an affidavit in 25
accordance with subsection 5 of this section. 26
3. If the owner of record or the holder of any other 27
publicly recorded claim on the property intends to transfer 28
ownership or execute any additional liens or encumbrances on 29
the property, such owner shall first redeem such property 30 SB 712 7
under section 140.340. The failure to comply with redeeming 31
the property first before executing any of such actions or 32
agreements on the property shall require the owner of record 33
or any other publicly recorded claim on the property to 34
reimburse the purchaser for the total bid as recorded on the 35
certificate of purchase and all the costs of the sale 36
required in sections 140.150 to 140.405. 37
4. In the case that both the certified notic e return 38
receipt card is returned unsigned and the first class mail 39
is returned for any reason except refusal, where the notice 40
is returned undeliverable, then the purchaser shall attempt 41
additional notice and certify in the purchaser's affidavit 42
to the collector that such additional notice was attempted 43
and by what means. 44
5. The purchaser shall notify the county collector by 45
affidavit of the date that every required notice was sent to 46
the owner of record and, if applicable, any other publicly 47
recorded claim on the property. To the affidavit, the 48
purchaser shall attach a copy of a valid title search report 49
as described in subsection 1 of this section as well as 50
completed copies of the following for each recipient: 51
(1) Notices of right to redeem sent by first class 52
mail; 53
(2) Notices of right to redeem sent by certified mail; 54
(3) Addressed envelopes for all notices, as they 55
appeared immediately before mailing; 56
(4) Certified mail receipt as it appeared upon its 57
return; and 58
(5) Any returned regular mailed envelopes. 59
As provided in this section, at such time the purchaser 60
notifies the collector by affidavit that all the ninety 61 SB 712 8
days' notice requirements of this section have been met, the 62
purchaser is authorize d to acquire the deed, provided that a 63
collector's deed shall not be acquired before the expiration 64
date of the redemption period as provided in section 140.340. 65
6. If any real estate is purchased at a third -offering 66
tax auction and has a publicly recorded unreleased deed of 67
trust, mortgage, lease, lien, judgment, or any other 68
publicly recorded claim upon the real estate under this 69
section, the purchaser of said property shall within forty - 70
five days after the purchase at the sale notify such pe rson 71
of the person's right to redeem the property within ninety 72
days from the postmark date on the notice , unless otherwise 73
exempted pursuant to subsection 6 of section 140.340 . 74
Notice shall be sent by both first class mail and certified 75
mail return receipt requested to such person's last known 76
available address. The purchaser shall notify the county 77
collector by affidavit of the date the required notice was 78
sent to the owner of record and, if applicable, the holder 79
of any other publicly recorded claim on the property, that 80
such person shall, except as provided in subsection 6 of 81
section 140.340, have ninety days to redeem said property or 82
be forever barred from redeeming said property. 83
7. If the county collector chooses to have the title 84
search done then the county collector may charge the 85
purchaser the cost of the title search before giving the 86
purchaser a deed pursuant to section 140.420. 87
8. Failure of the purchaser to comply with this 88
section shall result in such purchaser's loss of all 89
interest in the real estate except as otherwise provided in 90
sections 140.550 and 140.570. 91
9. The phrase "authorized to acquire the deed" as used 92
in this chapter shall mean the date chosen by the tax sale 93 SB 712 9
purchaser that is more than th e minimum redemption period 94
set forth in section 140.340 if the tax sale purchaser has 95
complied with the following requirements entitling the 96
purchaser to the issuance of a collector's deed: 97
(1) Compliance with the requirements of this section 98
to the satisfaction of the collector; 99
(2) Payment of the recording fee for the collector's 100
deed as required under section 140.410; 101
(3) Production of the original of the certificate of 102
purchase as required under section 140.420, or production of 103
an original affidavit of lost or destroyed certificate 104
approved by the collector as to form and substance; and 105
(4) Payment of all subsequent taxes required to be 106
paid under section 140.440. 107
10. Notwithstanding any provision of law to the 108
contrary, any person except a minor or an incapacitated or 109
disabled person may receive notice under this section in a 110
foreign country or outside the United States: 111
(1) By any internationally agreed -upon means of 112
service that is reasonably calculate d to give notice, such 113
as the Hague Convention on the Service Abroad of Judicial 114
and Extrajudicial Documents; 115
(2) If there is no internationally agreed -upon means 116
of service, or if an international agreement allows service 117
but does not specify th e means, by a method that is 118
reasonably calculated to give notice; 119
(3) As set forth for the foreign country's acceptable 120
method of service in actions in courts of general 121
jurisdiction; 122
(4) As the foreign country directs in response to a 123
letter of request; 124 SB 712 10
(5) Unless prohibited by a foreign country's law, by 125
delivering a copy of the notice to the person personally or 126
using a form of mail that requires a signed receipt; or 127
(6) By any other means not prohibited by international 128
agreement as approved by the collector. 129