summary
Introduced
01/13/2026
01/13/2026
In Committee
02/03/2026
02/03/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Property Justice Act. Provides that no interest shall be paid on any sale-in-error refund arising from an error or omission of a county assessor, county treasurer, sheriff, or other county office. Provides that, if interest on a sale-in-error refund is permitted, then the interest shall not exceed 6% annually. Provides that a tax purchaser may not receive more than $2,000,000 in cumulative sale-in-error refunds in a year. Provides that a tax purchaser shall be responsible for not less than 10% of the purchase amount in any sale-in-error arising from conditions discoverable upon ordinary due diligence at the time of sale. Provides that, before an annual tax sale or scavenger sale is conducted, specified officials must each execute a presale certification stating that the parcels are legally eligible for sale, that notices have been properly served, and that assessed and delinquent amounts are accurate. Creates the Community Revitalization Property Trust. Provides that the Trust shall acquire parcels that (1) receive no bids in a scavenger sale or (2) are located in a distressed municipality. Provides that the Trust shall (1) clear title on any property acquired by the Trust; (2) extinguish liens on any property acquired by the Trust; (3) package parcels acquired by the Trust for redevelopment; (4) convey parcels owned by the Trust for $1 to qualified local purchasers, including residents, nonprofits, faith-based organizations, or small developers; and (5) prioritize community-driven redevelopment. Provides that, if the State and local delinquent taxes on a parcel exceed 125% of the assessed market value of a parcel, then all amounts in excess of 125% are extinguished. Provides that the State Treasurer shall publish quarterly reports containing: (1) all sale-in-error refunds issued because of an error or omission by a county assessor, county treasurer, sheriff, or other county office; (2) the county office that caused the error or omission; and (3) the payments made because of the error or omission. Limits home rule powers. Effective immediately.
AI Summary
This bill, the Property Justice Act, aims to reform the property tax sale process by limiting interest on refunds for sales that are later canceled due to errors by county officials, capping that interest at 6% annually, and preventing tax purchasers from receiving more than $2,000,000 in such refunds per year. It also introduces a risk-sharing requirement where tax purchasers must cover at least 10% of the purchase price for sales canceled due to issues discoverable through ordinary due diligence. Before tax sales, specified county officials must provide a "presale certification" confirming parcels are eligible, notices were properly served, and tax amounts are accurate, with sales proceeding without this certification being void. The bill establishes a Community Revitalization Property Trust to acquire properties that don't sell at scavenger sales or are in "distressed municipalities" (municipalities with a high percentage of tax-delinquent properties or properties where delinquent taxes exceed their assessed value), with the Trust responsible for clearing titles, extinguishing liens, preparing properties for redevelopment, and selling them for $1 to qualified local buyers, prioritizing community-led projects. Additionally, if delinquent taxes on a parcel exceed 125% of its assessed market value, the excess debt is extinguished, and the State Treasurer will publish quarterly reports detailing sale-in-error refunds, the responsible county office, and payments made, with the Act overriding conflicting laws and limiting home rule powers.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned to Revenue (on 02/03/2026)
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