Tax sale procedure changes passed

Senators passed a bill May 23 that alters 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, changes the bidding process used in the annual tax sale process.

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

LB341 makes 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.

The bill passed on a 42-0 vote.