HB1909: Real property tax; nonjudicial sale of tax delinquent property.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3975 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3975. Nonjudicial sale of tax delinquent real properties of minimal size and value.
A. Notwithstanding any other provision of this title,
the treasurer or other officer responsible for collecting taxes may sell, at
public auction, any unimproved parcel of real property that is assessed at less
than $10,000 $5,000, provided that the taxes on such parcel are
delinquent on December 31 following the third anniversary of the date on which
such taxes have become due.
B. The treasurer or other officer responsible for
collecting taxes may in addition sell, at public auction, any parcel of real
property that is assessed at no less than $5,000 but less than $20,000,
provided that the taxes on such parcel are delinquent on December 31 following
the third anniversary of the date on which such taxes have become due, it
is not subject to a recorded mortgage or deed of trust lien, and either
such parcel (i):
1. Is unimproved and measures less than 4,000 square
feet (.0918 acres acre), or (ii);
2. Is unimproved and is determined to be unsuitable for
building due to the size, shape, zoning or soils, floodway, or other
environmental designations of the parcel made by the locality's
zoning administrator or other official designated by the locality to administer
its zoning ordinance and carry out the duties set forth in subdivision A 4 of §
15.2-2286;
3. Has a structure on it that has been condemned by the local building official pursuant to applicable law or ordinance;
4. Has been declared by the locality a nuisance as that term is defined in § 15.2-900;
5. Contains a derelict building as that term is defined in § 15.2-907.1; or
6. Has been declared by the locality to be blighted as that term is defined in § 36-3.
For purposes of determining the area of any parcel, the area or acreage found in the locality's land book shall be determinative.
Prior C. At least 30 days prior to conducting
such a sale under this section, the treasurer or other
officer responsible for collecting taxes shall send:
1. Send notice by certified or registered mail to the
record owner or owners of such property and anyone appearing to have an
interest in the property at their last known address as contained in the
records of the treasurer or other officer responsible for collecting taxes;
and shall post
2. Post notice of such sale at the property location,
if such property has frontage on any public or private street, and at the
circuit courthouse of the locality at least 30 days prior to such sale.
D. The treasurer or other officer responsible for
collecting taxes shall also cause a notice of sale to be published in the legal
classified section of a newspaper of general circulation in the locality in
which the property is located at least seven days but no more than 21 days
prior to the sale; however, if the annual taxes assessed on the property are
less than $500, such notice may be placed, in lieu of publication, on the
treasurer's or local government's website beginning at least 21 days prior to
sale and through the date of sale. The pro rata costs of posting notice,
publication, and mailing shall become a part of the tax and shall be
collected if payment is made by the owner in redemption of such real
property.
E. The treasurer or other officer responsible for collecting taxes may advertise and sell multiple parcels at the same time and place pursuant to one notice of sale.
F. The treasurer or other officer responsible for
collecting taxes may enter into an agreement with the owner of such parcel for
payment over time, not to exceed 12 months.
G. The owner of any property listed, or other
interested party, may redeem it at any time prior to the date of the sale
by paying all accumulated taxes, penalties, interest, and costs thereon,
including the pro rata costs of publication and mailing reasonable
attorney fees. Partial payment of delinquent taxes, penalties, interest,
or costs shall be insufficient to redeem the property, and shall not
operate to suspend, invalidate, or nullify any sale brought pursuant to
this section.
H. At the time of sale, the treasurer or other officer responsible
for collecting taxes shall sell to the highest bidder at public auction each
parcel that has not been redeemed by the owner. Such sale shall be free and
clear of the locality's tax lien, but shall not affect easements or
other rights of record recorded prior to the date of sale or liens
recorded prior to the date of sale unless the treasurer has given the
lienholder written notice of the sale at least 30 days prior to the sale, at
the lienholder's address of record and through his registered agent, if any.
The treasurer or other officer responsible for collecting taxes shall tender a
treasurer's special warranty deed pursuant to this section to
effectuate the conveyance of the parcel to the highest bidder.
I. If the sale proceeds are insufficient to pay the
taxes amounts owed in full, the remaining delinquent tax amount
shall remain the personal liability of the former owner treasurer or
other officer responsible for collecting taxes may remove the unpaid taxes from
the books and mark the same as satisfied. The sale proceeds shall be
applied first to the costs of sale, then to the taxes, penalty, and
interest, and fees due on the parcel, and thereafter to any other taxes
or other charges owed by the former owner to the jurisdiction.
J. Any excess proceeds shall remain the property of the
former owner, subject to claims of creditors, and shall be kept by the
treasurer or other officer responsible for collecting taxes in an
interest-bearing escrow account. If any petition for excess proceeds is made
to the treasurer or other officer responsible for collecting taxes under this
section, the treasurer or officer holding the funds shall forward the funds to
the locality's circuit court clerk to be impleaded along with a copy of the
claim for excess proceeds. A copy of such transmission shall be forwarded to
the claimant. The burden of scheduling a hearing with the circuit court on the
claim shall be that of the claimant and shall be made within two years of the
date of the sale of the property that generated the excess funds. In the event
that funds remain with the court two years after the date of the sale, the
locality may petition to have the funds distributed to the locality's general
fund. If no claim for payment of excess proceeds is made by the former
owner within two years after the date of sale, the treasurer or other
responsible officer shall deposit the excess proceeds in the jurisdiction's
general fund.
K. If the sale does not produce a successful bidder, the treasurer or other responsible officer shall add the costs of sale incurred by the jurisdiction to the delinquent real estate account.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3975 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3975. Nonjudicial sale of tax delinquent real properties of minimal size and value.
A. Notwithstanding any other provision of this title,
the treasurer or other officer responsible for collecting taxes may sell, at
public auction, any unimproved parcel of real property that is assessed at less
than $10,000 $5,000, provided that the taxes on such parcel are
delinquent on December 31 following the third anniversary of the date on which
such taxes have become due.
B. The treasurer or other officer responsible for
collecting taxes may in addition sell, at public auction, any parcel of real
property that is assessed at no less than $5,000 but less than $20,000,
provided that the taxes on such parcel are delinquent on December 31 following
the third anniversary of the date on which such taxes have become due, [ it
is not subject to a recorded mortgage or deed of trust lien, ] and
either such parcel (i):
1. Is unimproved and measures less than 4,000 square
feet (.0918 acres acre), or (ii);
2. Is unimproved and is determined to be unsuitable for
building due to the size, shape, zoning or soils, floodway, or other
environmental designations of the parcel made by the locality's
zoning administrator or other official designated by the locality to administer
its zoning ordinance and carry out the duties set forth in subdivision A 4 of §
15.2-2286;
3. Has a structure on it that has been condemned by the local building official pursuant to applicable law or ordinance;
4. Has been declared by the locality a nuisance as that term is defined in § 15.2-900;
5. Contains a derelict building as that term is defined in § 15.2-907.1; or
6. Has been declared by the locality to be blighted as that term is defined in § 36-3.
For purposes of determining the area of any parcel, the area
or acreage found in the locality's land book shall be determinative. [ The
governing body of any county, city, or town may, by ordinance, increase the
maximum assessed value as provided in this subsection no less than $5,000 but
less than $50,000. ]
Prior C. At least 30 days prior to conducting
such a sale under this section, the treasurer or other
officer responsible for collecting taxes shall send:
1. Send notice by certified or registered mail to the
record owner or owners of such property and anyone appearing to have an
interest in the property at their last known address as contained in the
records of the treasurer or other officer responsible for collecting taxes;
and shall post
2. Post notice of such sale at the property location,
if such property has frontage on any public or private street, and at the
circuit courthouse of the locality at least 30 days prior to such sale.
D. The treasurer or other officer responsible for
collecting taxes shall also cause a notice of sale to be published in the legal
classified section of a newspaper of general circulation in the locality in
which the property is located at least seven days but no more than 21 days
prior to the sale; however, if the annual taxes assessed on the property are
less than $500, such notice may be placed, in lieu of publication, on the
treasurer's or local government's website beginning at least 21 days prior to
sale and through the date of sale. The pro rata costs of posting notice,
publication, and mailing shall become a part of the tax and shall be
collected if payment is made by the owner in redemption of such real
property.
E. The treasurer or other officer responsible for collecting taxes may advertise and sell multiple parcels at the same time and place pursuant to one notice of sale.
F. The treasurer or other officer responsible for
collecting taxes may enter into an agreement with the owner of such parcel for
payment over time, not to exceed 12 months.
G. The owner of any property listed, or other
interested party, may redeem it at any time prior to the date of the sale
by paying all accumulated taxes, penalties, interest, and costs thereon,
including the pro rata costs of publication and mailing reasonable
attorney fees. Partial payment of delinquent taxes, penalties, interest,
or costs shall be insufficient to redeem the property, and shall not
operate to suspend, invalidate, or nullify any sale brought pursuant to
this section.
H. At the time of sale, the treasurer or other officer
responsible for collecting taxes shall sell to the highest bidder at public
auction each parcel that has not been redeemed by the owner. Such sale shall be
free and clear of the locality's tax lien, but shall not affect
easements or other rights of record recorded prior to the date of sale
or liens recorded prior to the date of sale unless the treasurer has given the
lienholder written notice of the sale at least 30 days prior to the sale, at
the lienholder's address of record and through his registered agent, if any.
The treasurer or other officer responsible for collecting taxes shall tender a
treasurer's special warranty deed pursuant to this section to
effectuate the conveyance of the parcel to the highest bidder.
I. If the sale proceeds are insufficient to pay the
taxes amounts owed in full, the remaining delinquent tax amount
shall remain the personal liability of the former owner treasurer or
other officer responsible for collecting taxes may remove the unpaid taxes from
the books and mark the same as satisfied. The sale proceeds shall be
applied first to the costs of sale, then to the taxes, penalty, and
interest, and fees due on the parcel, and thereafter to any other taxes
or other charges owed by the former owner to the jurisdiction.
J. Any excess proceeds shall remain the property of the
former owner, subject to claims of creditors, and shall be kept by the
treasurer or other officer responsible for collecting taxes in an
interest-bearing escrow account. If any petition for excess proceeds is made
to the treasurer or other officer responsible for collecting taxes under this
section, the treasurer or officer holding the funds shall forward the funds to
the locality's circuit court clerk to be impleaded along with a copy of the
claim for excess proceeds. A copy of such transmission shall be forwarded to
the claimant. The burden of scheduling a hearing with the circuit court on the
claim shall be that of the claimant and shall be made within two years of the
date of the sale of the property that generated the excess funds. In the event
that funds remain with the court two years after the date of the sale, the
locality may petition to have the funds distributed to the locality's general
fund. If no claim for payment of excess proceeds is made by the former
owner within two years after the date of sale, the treasurer or other
responsible officer shall deposit the excess proceeds in the jurisdiction's
general fund.
K. If the sale does not produce a successful bidder, the treasurer or other responsible officer shall add the costs of sale incurred by the jurisdiction to the delinquent real estate account.
HOUSE BILL NO. 1909
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3975 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3975. Nonjudicial sale of tax delinquent real properties of minimal size and value.
A. Notwithstanding
any other provision of this title, the treasurer or other officer responsible
for collecting taxes may sell, at public auction, any unimproved parcel of real
property that is assessed at less than $10,000 $5,000,
provided that the taxes on such parcel are delinquent on December 31 following
the third anniversary of the date on which such taxes have become due.
B. The treasurer or
other officer responsible for collecting taxes
may in addition sell, at public auction,
any parcel of real property that is assessed at no less than $5,000 but less
than $20,000, provided that the taxes on such parcel are delinquent on December
31 following the third anniversary of the date on which such taxes have become
due, and either
such parcel (i):
1. Is
unimproved and measures less than 4,000 square feet (.0918 acres acre), or (ii);
2. Is
unimproved and is determined to be unsuitable for building
due to the size, shape, zoning or soils, floodway, or other environmental designations
of the parcel made by
the locality's zoning administrator or other official designated by the
locality to administer its zoning ordinance and carry out the duties set forth
in subdivision A 4 of § 15.2-2286;
3. Has a structure on it that has been condemned by the local building official pursuant to applicable law or ordinance;
4. Has been declared by the locality a nuisance as that term is defined in § 15.2-900;
5. Contains a derelict building as that term is defined in § 15.2-907.1; or
6. Has been declared by the locality to be blighted as that term is defined in § 36-3.
For purposes of determining the area of any parcel, the area
or acreage found in the locality's land book shall be determinative. The governing body of any county, city,
or town may, by ordinance, increase the maximum assessed value
as provided in this subsection no less
than $5,000 but less than $50,000.
Prior C. At least 30 days prior to
conducting such a sale under this section, the treasurer or other officer responsible for
collecting taxes shall send:
1. Send
notice by certified or registered mail to the record owner or owners of such
property and anyone appearing to have an interest in the property at their last
known address as contained in the records of the treasurer or other officer
responsible for collecting taxes; and shall post
2. Post
notice of such sale at the property location, if such property has frontage on
any public or private street, and at the circuit courthouse of the locality at least 30 days prior to such sale.
D. The
treasurer or other officer responsible for collecting taxes shall also cause a
notice of sale to be published in the legal classified section of a newspaper
of general circulation in the locality in
which the property is located at least seven days but no
more than 21 days prior to the sale; however, if the
annual taxes assessed on the property are
less than $500, such notice may be placed, in lieu of publication,
on the treasurer's or local government's website beginning
at least 21 days prior to sale and through the date
of sale. The pro rata costs of posting
notice, publication, and
mailing shall become a part of the tax and shall be collected if payment is
made by the owner in redemption of
such real property.
E. The treasurer or other officer responsible for collecting taxes may advertise and sell multiple parcels at the same time and place pursuant to one notice of sale.
F. The
treasurer or other officer responsible for collecting taxes may enter into an
agreement with the owner of such parcel for payment over time, not to exceed 12 months.
G. The
owner of any property listed, or other interested party,
may redeem it at any time prior to the date of the sale by paying all
accumulated taxes, penalties, interest, and costs
thereon, including
the pro rata costs of publication and mailing reasonable attorney fees. Partial payment of delinquent taxes, penalties,
interest, or costs shall be
insufficient to redeem the property, and
shall not operate to suspend, invalidate, or
nullify any sale brought pursuant to this section.
H. At
the time of sale, the treasurer or other officer responsible for collecting
taxes shall sell to the highest bidder at public auction each parcel that has
not been redeemed by the owner. Such sale shall be free and clear of the locality's tax lien, but shall
not affect easements or other rights of
record recorded prior to the date of sale or liens recorded prior to the date of sale unless
the treasurer has given the lienholder
written notice of the sale at least 30 days
prior to the sale, at the
lienholder's address of record and through his
registered agent, if any.
The treasurer or other officer responsible for collecting taxes shall tender a treasurer's special warranty
deed pursuant to this section to
effectuate the conveyance of the parcel to the highest bidder.
I. If
the sale proceeds are insufficient to pay the taxes amounts owed
in full, the remaining delinquent
tax amount shall remain the personal liability of the former owner treasurer or other
officer responsible for collecting taxes may remove the unpaid taxes from the
books and mark the same as satisfied.
The sale proceeds shall be applied first to the costs of sale, then to the
taxes, penalty, and interest, and
fees due on the parcel, and
thereafter to any other taxes or other charges owed by the former owner to the
jurisdiction.
J. Any
excess proceeds shall remain the property of the former owner, subject to claims of creditors,
and shall be kept by the treasurer or other officer
responsible for collecting taxes in an interest-bearing
escrow account. If any petition for excess
proceeds is made to the treasurer or other officer responsible for collecting
taxes under this section, the treasurer or officer holding the funds shall
forward the funds to the locality's circuit court clerk to be impleaded along
with a copy of the claim for excess proceeds. A copy of such transmission shall
be forwarded to the claimant. The burden of scheduling a hearing with the
circuit court on the claim shall be that of the claimant and shall be made
within two years of the date of the sale of the property that generated the
excess funds. In the event that funds
remain with the court two years after the date of the sale, the locality may
petition to have the funds distributed to the locality's general fund. If
no claim for payment of excess proceeds is made by
the former owner within two years after the date of sale,
the treasurer or other responsible
officer shall deposit the excess proceeds in the
jurisdiction's general fund.
K. If the sale does not produce a successful bidder, the treasurer or other responsible officer shall add the costs of sale incurred by the jurisdiction to the delinquent real estate account.