Senate committee approves land bank tax foreclosure bill
The Senate Local Government and Elections Committee favorably reported Senate Bill 112 (Sen. Dolan), a bill that makes numerous changes to procedures that affect county land banks and tax foreclosures.
One of the notable features of the bill is that it allows county commissioners to direct up to 50 percent of taxes collected on certain real property conveyed by a county land bank to be paid to the land bank for up to five years, rather than to the applicable taxing districts. Also, the bill allows tax foreclosure notices to be published electronically rather than in newspapers, creating a potential savings for counties.
The bill changes the current law split of sale proceeds to the county treasurer and prosecutor’s DTAC funds. Under the bill, the county prosecutor and treasurer each receive 10% of the sale proceeds, and an additional 10% is deposited into the county land reutilization fund if one exists. The county auditor’s fee for deeds of land sold for taxes is increased from $5 to $45. The committee removed a provision that would have exempted land banks from the prevailing wage law.
The next step for the bill is consideration by the full Senate.
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