HOUSE BILL NO. 2898 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE OWEN.
5518H.02I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 140.010, 140.190, 140.250, 140.420, 140.980, 140.981, 140.982, 140.983, 140.984, 140.985, 140.986, 140.987, 140.988, 140.991, 140.994, 140.995, 140.1000, 140.1009, 140.1012, 141.220, 141.230, 141.250, 141.270, 141.290, 141.300, 141.320, 141.330, 141.360, 141.410, 141.440, 141.500, 141.520, 141.535, 141.540, 141.550, 141.560, 141.570, 141.580, 141.610, 141.620, 141.680, 141.700, 141.819, 141.980, 141.984, 141.1009, 141.1020, and 249.255, RSMo, and to enact in lieu thereof forty- eight new sections relating to unpaid taxes and fees.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 140.010, 140.190, 140.250, 140.420, 140.980, 140.981, 140.982, 2 140.983, 140.984, 140.985, 140.986, 140.987, 140.988, 140.991, 140.994, 140.995, 3 140.1000, 140.1009, 140.1012, 141.220, 141.230, 141.250, 141.270, 141.290, 141.300, 4 141.320, 141.330, 141.360, 141.410, 141.440, 141.500, 141.520, 141.535, 141.540, 141.550, 5 141.560, 141.570, 141.580, 141.610, 141.620, 141.680, 141.700, 141.819, 141.980, 141.984, 6 141.1009, 141.1020, and 249.255, RSMo, are repealed and forty-eight new sections enacted 7 in lieu thereof, to be known as sections 140.010, 140.190, 140.250, 140.420, 140.980, 8 140.981, 140.982, 140.983, 140.984, 140.985, 140.986, 140.987, 140.988, 140.991, 140.994, 9 140.995, 140.1000, 140.1009, 140.1012, 141.220, 141.230, 141.250, 141.270, 141.290, 10 141.300, 141.320, 141.330, 141.360, 141.410, 141.440, 141.500, 141.520, 141.535, 141.540, 11 141.550, 141.560, 141.570, 141.580, 141.610, 141.620, 141.680, 141.700, 141.819, 141.980, 12 141.984, 141.1009, 141.1020, and 249.255, to read as follows: 140.010. 1. All real estate upon which the taxes remain unpaid on the first day of 2 January, annually, are delinquent, and the county collector shall enforce the lien of the state
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2898 2
3 thereon, as required by this chapter. Any failure to properly return the delinquent list, as 4 required by this chapter, in no way affects the validity of the assessment and levy of taxes, nor 5 of the foreclosure and sale by which the collection of the taxes is enforced, nor in any manner 6 affects the lien of the state on the delinquent real estate for the taxes unpaid thereon. 7 2. Alternatively, any county may, by adoption of a resolution or order of the county 8 commission of such county, elect to operate under the provisions of sections 141.210 to 9 141.810 for any parcel [for which there is an unpaid tax bill for a period of at least two years 10 after the date on which it became delinquent]. Any county electing to operate as such shall be 11 called a "partial opt-in county". No county eligible to establish a land bank agency under 12 subsection 1 of section 140.981 shall elect to operate as a partial opt-in county unless the 13 county first elects to establish a land bank agency as provided in subsection 1 of section 14 140.981. In accordance with section 141.290, after the adoption of such resolution or order 15 by a county commission, the collector of the county shall decide which tax delinquent parcels 16 shall proceed according to the provisions of sections 141.210 to 141.810. Such parcels shall 17 be exempt from the provisions of sections 140.030 to 140.722. The collector shall remove 18 such parcels from any list of parcels advertised for first, second, third, or post-third sales. 140.190. 1. On the day mentioned in the notice, the county collector shall commence 2 the sale of such lands, and shall continue the same from day to day until each parcel assessed 3 or belonging to each person assessed shall be sold as will pay the taxes, interest, and charges 4 thereon, or chargeable to such person in said county. 5 2. (1) The person or land bank agency offering at said sale to pay the required sum 6 for a tract shall be considered the purchaser of such land; provided, no sale shall be made to 7 any person or designated agent who: 8 (a) Is currently delinquent on any tax payments on any property, other than a 9 delinquency on the property being offered for sale, and who does not sign an affidavit stating 10 such at the time of sale. Failure to sign such affidavit as well as signing a false affidavit may 11 invalidate such sale; 12 (b) Is a member of the governing body of a land bank agency; 13 (c) Is an employee of a land bank agency; 14 (d) Is an elected or appointed official of the governing body, or an employee of such 15 official, of the political subdivision in which a land bank agency is located; or 16 (e) Is related within the second degree of consanguinity to a person described in 17 paragraphs (b) to (d) of this subdivision. 18 (2) No bid shall be received from any person not a resident of the state of Missouri or 19 a foreign corporation or entity all deemed nonresidents. A nonresident shall file with said 20 collector an agreement in writing consenting to the jurisdiction of the circuit court of the 21 county in which such sale shall be made, and also filing with such collector an appointment of HB 2898 3
22 some citizen of said county as agent of said nonresident, and consenting that service of 23 process on such agent shall give such court jurisdiction to try and determine any suit growing 24 out of or connected with such sale for taxes. After the delinquent auction sale, any certificate 25 of purchase shall be issued to the agent. After meeting the requirements of section 140.405, 26 the property shall be conveyed to the agent on behalf of the nonresident, and the agent shall 27 thereafter convey the property to the nonresident. A collector may preclude a prospective 28 bidder from participating in a sale for failure to comply with any of the provisions of this 29 section. 30 3. All such written consents to jurisdiction and selective appointments shall be 31 preserved by the county collector and shall be binding upon any person or corporation 32 claiming under the person consenting to jurisdiction and making the appointment herein 33 referred to; provided further, that in the event of the death, disability or refusal to act of the 34 person appointed as agent of said nonresident the county clerk shall become the appointee as 35 agent of said nonresident. 36 4. No person residing in any home rule city with more than seventy-one thousand but 37 fewer than seventy-nine thousand inhabitants shall be eligible to offer to purchase lands under 38 this section unless such person has, no later than ten days before the sale date, demonstrated 39 to the satisfaction of the official charged by law with conducting the sale that the person is not 40 the owner of any parcel of real property that has two or more violations of the municipality's 41 building or housing codes. A prospective bidder may make such a demonstration by 42 presenting statements from the appropriate collection and code enforcement officials of the 43 municipality. This subsection shall not apply to any taxing authority or land bank agency, and 44 entities shall be eligible to bid at any sale conducted under this section without making such a 45 demonstration. 140.250. 1. Whenever any lands have been or shall hereafter be offered for sale for 2 delinquent taxes, interest, penalty, and costs by the collector of the proper county for any two 3 successive years and no person shall have bid therefor a sum equal to the delinquent taxes 4 thereon, interest, penalty and costs provided by law, then such county collector shall at the 5 next regular tax sale of lands for delinquent taxes sell same to the highest bidder, except the 6 highest bid shall not be less than the sum equal to the delinquent taxes, interest, penalties, and 7 costs, and there shall be a ninety-day period of redemption from such sales as specified in 8 section 140.405. 9 2. A certificate of purchase shall be issued as to such sales, and the purchaser at such 10 sales shall be entitled to the issuance and delivery of a collector's deed upon completion of 11 title search action as specified in section 140.405. 12 3. If any lands or lots are not sold at such third offering, then the collector shall 13 advertise or offer such lands or lots for sale once every thirty days. HB 2898 4
14 4. A purchaser at any sale subsequent to the third offering of any land or lots, whether 15 by the collector or a trustee as provided in section 140.260, shall be entitled to the immediate 16 issuance and delivery of a collector's deed and there shall be no period of redemption from 17 such post-third year sales; provided, however, before any purchaser at a sale to which this 18 section is applicable shall be entitled to a collector's deed it shall be the duty of the collector 19 to demand, and the purchaser to pay, in addition to the purchaser's bid, all taxes due and 20 unpaid on such lands or lots that become due and payable on such lands or lots subsequent to 21 the date of the taxes included in such advertisement and sale. The collector's deed or trustee's 22 deed shall have priority over all other liens or encumbrances on the property sold except for 23 real property taxes. 24 5. A purchaser at any sale subsequent to the third offering of any land or lots, whether 25 by the collector or a trustee as provided in section 140.260, may elect to proceed under 26 subsection 1 of this section and subsection 6 of section 140.405 by giving notice to the 27 collector prior to the issuance of a collector's deed. 28 6. In the event the real purchaser at any sale to which this section is applicable shall 29 be the owner of the lands or lots purchased, or shall be obligated to pay the taxes for the 30 nonpayment of which such lands or lots were sold, then no collector's deed shall be issued to 31 such purchaser, or to anyone acting for or on behalf of such purchaser, without payment to the 32 collector of such additional amount as will discharge in full all delinquent taxes, penalty, 33 interest and costs. 140.420. If no person shall redeem the lands sold for taxes prior to the expiration of 2 the right to redeem, at the expiration thereof, and on production of the certificate of purchase 3 and upon proof satisfactory to the collector that a purchaser or the purchaser's heirs, 4 successors, or assigns are authorized to acquire the deed: 5 (1) The collector of the county in which the sale of such lands took place shall 6 execute to the purchaser or the purchaser's heirs or assigns, in the name of the state, a 7 conveyance of the real estate so sold, which shall vest in the grantee an absolute estate in fee 8 simple, subject, however, to all claims thereon for unpaid taxes except such unpaid taxes, 9 existing at time of the purchase of said lands and the lien for which taxes was inferior to the 10 lien for taxes for which said tract or lot of land was sold; and 11 (2) The state of Missouri or any person, taxing authority, tax district, judgment 12 creditor, or lienholder that had a right, title, interest, claim, or equity of redemption on or to 13 the lands or that had a lien upon the lands shall be barred and forever foreclosed of such 14 unclaimed right, title, interest, claim, or equity of redemption in or to the lands and of any lien 15 upon the lands. 140.980. 1. Sections 140.980 to 140.1015 shall be known [and may be cited] as the 2 "Chapter 140 Land Bank Act". HB 2898 5
3 2. As used in sections 140.980 to 140.1015, the following terms mean: 4 (1) "Land bank agency", an agency established by a county or municipality under the 5 authority of section 140.981; 6 (2) "Land taxes", taxes on real property or real estate, including the taxes both on the 7 land and the improvements thereon; 8 (3) "Municipality", any incorporated city, town, or village in this state; 9 (4) "Political subdivision", any county, city, town, village, school district, library 10 district, or any other public subdivision or public corporation that has the power to tax; 11 (5) "Reserve period taxes", land taxes assessed against any parcel of real estate sold 12 or otherwise disposed of by a land bank agency for the first three tax years following such 13 sale or disposition; 14 (6) "Tax bill", real estate taxes and the lien thereof, whether general or special, levied 15 and assessed by any taxing authority; 16 (7) "Taxing authority", any governmental, managing, administering, or other lawful 17 authority, now or hereafter empowered by law to issue tax bills. 140.981. 1. Any county with more than one million inhabitants may establish a land 2 bank agency for the management, sale, transfer, and other disposition of interests in real estate 3 owned by such land bank agency. Any such county may establish a land bank agency by 4 ordinance, resolution, or rule, as applicable. Such ordinance, resolution, or rule shall specify 5 the name of the land bank agency. No county in which a land bank agency has been 6 established under the provisions of sections 141.980 to 141.1015 shall elect to establish a land 7 bank agency under this section. 8 2. Any municipality with more than one thousand five hundred inhabitants not 9 located within a county with more than one million inhabitants may establish a land bank 10 agency for the management, sale, transfer, and other disposition of interests in real estate 11 owned by such land bank agency. A municipality may establish a land bank agency by 12 ordinance, resolution, or rule, as applicable. 13 3. A land bank agency shall not own any interest in real estate located wholly or 14 partially outside the [city] municipality or county that established the land bank. 15 4. A land bank agency shall be established for the purpose of returning land, 16 including land that is in a non-revenue-generating, non-tax-producing status, to use in private 17 ownership, or for public use. 18 5. A land bank agency created under the chapter 140 land bank act shall be a public 19 body corporate and politic and shall have permanent and perpetual duration until terminated 20 and dissolved in accordance with the provisions of section 140.1012. 140.982. 1. If a county establishes a land bank agency under subsection 1 of section 2 140.981, the members of the first board of directors of a land bank agency shall be appointed HB 2898 6
3 within ninety days after the effective date of the ordinance, resolution, or rule passed 4 establishing such land bank agency. [If any appointing authority fails to make any 5 appointment of a board member within the time the first appointments are required, the 6 appointment shall be made by the county council.] The following requirements shall apply to 7 the board of directors: 8 (1) The board of directors shall consist of seven members appointed by the county 9 executive under the authority vested in that office by the county charter: 10 (a) Two of whom shall [be appointed by the county executive, one of whom shall] 11 have professional expertise relevant to the land bank agency; 12 (b) One of whom shall [be appointed by the member of the county council 13 representing the] represent the county council of the district with the highest number of tax 14 delinquent parcels. Such board member shall maintain a primary residence within such 15 district; 16 (c) One of whom shall [be appointed by the member of the county council 17 representing the] represent the county council of the district with the second highest 18 number of tax delinquent parcels. Such board member shall maintain a primary residence 19 within such district; 20 (d) One of whom shall [be appointed by consensus of the county executive and the 21 president of] represent the municipal league of the county; and 22 (e) Two of whom shall be resident representatives. Resident representatives shall be 23 appointed by a majority vote of the other board members, and each resident representative 24 shall maintain a primary residence within one of the twenty municipalities containing the 25 highest percentage of tax delinquent parcels; 26 (2) The term of office of a member shall be four years. Each member's primary 27 residence shall be in the county that has established the land bank agency. Each member 28 serves at the pleasure of the member's appointing authority, may be an employee of the 29 appointing authority, and shall serve without compensation; 30 (3) No public officer shall be eligible to serve as a board member. For purposes of 31 this subdivision, "public officer" means a person who is holding an elected public office. Any 32 public employee shall be eligible to serve as a board member; 33 (4) The members of the board shall select annually from among themselves a chair, a 34 vice chair, a treasurer, and such other officers as the board may determine and shall establish 35 the officers' duties, as may be regulated by rules adopted by the board; 36 (5) The board shall establish rules and requirements relative to the attendance and 37 participation of members in its meetings, regular or special. Such rules and regulations may 38 prescribe a procedure whereby, if any member fails to comply with such rules and 39 regulations, such member may be disqualified and removed automatically from office by no HB 2898 7
40 less than a majority vote of the remaining members of the board, and that member's position 41 shall be vacant as of the first day of the next calendar month. Any person removed under the 42 provisions of this subdivision shall be ineligible for reappointment to the board unless such 43 reappointment is confirmed unanimously by the board; 44 (6) A vacancy on the board shall be filled in the same manner as the original 45 appointment[. If any appointing authority fails to make any appointment of a board member 46 within sixty days after any term expires, the appointment shall be made by the county 47 council] within sixty days and shall be done in compliance with the county charter; 48 (7) Board members shall serve without compensation. The board may reimburse any 49 member for expenses actually incurred in the performance of duties on behalf of the land 50 bank agency; 51 (8) The board shall ha