CCS#2/HCS/SB 778 - This act changes certain procedures for the collection of property taxes. The act reduces the amount of time county collectors have to collect personal property taxes from the current 5 years to 3 years.

Under current law, sales of real property for delinquent taxes must occur within three years of the delinquency, but the delinquent taxpayer has a right to redeem the property within two years of the tax sale by paying the purchase price, the costs of the sale, and all subsequent taxes plus interest. No redemption right exists for third sales (where the property has not been sold at the previous two tax sales.) This act specifies that a person who holds a publicly recorded deed of trust, mortgage, lease, lien or claim on property purchased at a third tax sale and who has received proper notice has a redemption period of ninety days prior to the date the purchaser is authorized to acquire the deed or is forever barred from redeeming the property.

The act clarifies that, during the period before a sheriff's foreclosure sale for delinquent property in first class charter counties, a collector can enter into a written redemption contract for any parcel of real estate other than a residential property which has been vacant for at least six months. No person who has a tax delinquency on other real property in the county is eligible to bid on any parcel at a foreclosure sale.

The act also clarifies that a motor vehicle or trailer license application must be accompanied by a tax receipt for the tax year immediately preceding the year in which the registration is due.

Certain provisions of this act are the same as those contained in HB 1531 (1998).
RUSS HEMBREE