Property taxation: tax-defaulted property sales: excess proceeds claims.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill changes the rules for how excess property tax proceeds are handled when a property is sold due to unpaid taxes. Currently, anyone with an interest in the property can claim these proceeds. The bill requires agreements between parties assisting in claiming these proceeds to be in writing, signed by the property owner after receiving specific disclosures, and limits the fees that can be charged. It also exempts certain financial institutions and bankruptcy estates from these new requirements and delays the implementation of the changes until January 1, 2027.
Key provisions
- Requires written agreements between parties assisting in claiming excess proceeds.
- Mandates specific disclosures to the property owner regarding the excess proceeds and their right to file a claim directly with the county.
- Limits fees that can be charged for assistance in claiming excess proceeds to a maximum of 20% of the awarded amount.
- Exempts certain financial institutions and bankruptcy estates from the new requirements.
- Delays the implementation of these changes until January 1, 2027.
- Allows the county to correct minor deficiencies in excess proceeds claims.
- Specifies the order of priority for distributing excess proceeds.
- Addresses the distribution of excess proceeds in cases of tax sale rescissions.
Who is affected
- Property owners
- Taxpayers
- County tax collectors
- Financial institutions (specifically exempted)
Bill text
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