Tax sale procedure changes advanced

Senators gave first-round approval April 9 to a bill that would alter the procedure for purchasing tax sales certificates.

Currently, property owners who become delinquent on their taxes are subject to a tax sales process. Individuals can pay the delinquent property taxes and receive a lien on the property in return. Investors can purchase the certificates at an annual tax sale.

LB341, introduced by Lexington Sen. John Wightman, would change the bidding process used in the annual tax sale process. Wightman said the bill would set forth a more uniform procedure.

“This is the product of an interim study which called for a comprehensive review of laws governing real property sales,” he said. “This would update and streamline the process for collecting delinquent taxes.”

The bill would eliminate the current bid down process used in selling tax certificates and instead implement a round robin format. Bidders would be required to register and pay a $25 fee to participate in the sale.

LB341 would make several additional changes, some of which include:
• an increase from $10 to $20 for the issuance of a tax certificate;
• a requirement of a property deed certificate for each property, rather than a certificate for multiple properties; and
• elimination of a redundant notice sent by certified mail regarding owner occupied property.

Following the adoption of a technical amendment, senators advanced the bill on a 32-0 vote.