Tax sale; county to retain any overbid amount and landowner prohibited from requesting recovery of.
The passage of SB2020 is poised to have significant implications for landowners whose properties are sold due to tax delinquency. As it stands, landowners could previously claim any overbid amounts following a tax sale, which provided them with recourse should the land be sold for more than what was owed. The new amendment would eliminate this possibility, leading to the retention of more funds within the county system. Proponents of the bill argue that this keeps local governments financially stable and enhances funding for community services, whereas opponents may contend that it undermines rights of landowners, especially those who find themselves in financial distress.
Senate Bill 2020 proposes an amendment to Section 27-41-77 of the Mississippi Code of 1972, specifically concerning the sale of land for tax purposes. The bill mandates that any excess amount received from the sale of the land beyond the owed taxes and costs be retained in the county general fund. This change is intended to streamline the handling of excess funds from tax sales and to ensure that these funds are directed toward local government finances rather than returned to the landowner. Under the new provisions, landowners would also be prohibited from requesting payment for this excess amount, effectively limiting their rights regarding overbids on tax sales.
Notable points of contention surrounding SB2020 include the balance of authority between county governments and landowner rights. While supporters assert that the policy promotes fiscal responsibility for local authorities, critics argue that it could lead to a loss of trust in the tax sale process. The prohibition for landowners to request excess funds may be viewed as disproportionately punitive, particularly in cases where the property was not redeemed and the owner may have expected a return of any excess bid amounts. These dynamics may foster further debate about equity and fairness in tax collection practices.