HB 981
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 981 (Prince George's County Delegation)
Ways and Means Budget and Taxation
Prince George's County - Tax Sales - Limited Auction
PG 413-21
This bill limits the properties for which the tax collector in Prince George’s County must
conduct a tax sale by limited auction (prior to conducting a public auction) to abandoned
property consisting of either a vacant lot or improved property cited as vacant and unfit for
habitation on a housing or building violation notice. In addition, the bill alters the existing
list of eligible individuals that may participate in the limited auction by requiring that (1) an
eligible federal employee be employed by a federal agency located in the county and (2) an
eligible veteran be employed in the county. The bill also establishes that if a purchaser at a
limited auction was not an eligible participant, in addition to the certificate of sale for the
property being void, any right or interest of the holder of the certificate of sale is void and
any payment received by the collector at the sale must be forfeited and applied to any taxes
in arrears on the property. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: None.
Local Effect: The bill is not anticipated to materially affect Prince George’s County
operations or finances.
Small Business Effect: Potential meaningful.
Analysis
Current Law: Chapter 819 of 2017 established that, in addition to the tax sale by public
auction, the tax collector in Prince George’s County must conduct a sale by limited auction
prior to the public auction. The tax sale by limited auction is open to bids only from an
individual who is (1) a resident of Prince George’s County; (2) employed by the
Prince George’s County government, including specified agencies, or in a public school
located in the county; (3) employed by the federal government; (4) employed by a
municipal government in the county; or (5) a veteran of any branch of the armed forces of
the United States who has received an honorable discharge.
The collector must include the date, time, and location of the limited auction in the notice
of sale for the public auction. The limited auction is subject to the same requirements for a
public auction, and a purchase of property at a limited auction is considered the same as a
purchase at public auction and subject to the same requirements.
The collector must establish a system to verify that individuals placing bids on property at
the limited auction are eligible to do so. A certificate of sale for property purchased at a
limited auction must be void if the purchaser was not an eligible participant. If a certificate
of sale is void, the property must be listed at the next limited or public auction held if the
property is still eligible to be sold at a tax sale.
A certificate of sale issued to a purchaser at a limited auction may not be assigned to
another person.
The holder of a certificate of sale for abandoned property consisting of either a vacant lot
or improved property cited as vacant and unfit for habitation on a housing or building
violation notice, that is sold at a limited auction, may file a complaint to foreclose all rights
of redemption in the property at any time after the date of the sale.
Property offered for sale during a limited auction that is not sold must be offered for sale
at public auction.
For more information about the tax sale process, see the Appendix – Tax Sale Process.
Small Business Effect: Small business investors who are not eligible to participate in the
limited auction may benefit from fewer properties being offered for sale at the limited
auction before the public auction.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
HB 981/ Page 2
Information Source(s): Prince George’s County; Judiciary (Administrative Office of the
Courts); Department of Legislative Services
Fiscal Note History: First Reader - February 21, 2021
rh/sdk Third Reader - March 29, 2021
Revised - Amendment(s) - March 29, 2021
Analysis by: Donavan A. Ham Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 981/ Page 3
 Appendix – Tax Sale Process
In general, a tax collector must sell, at an auction, not later than two years from the date
the tax is in arrears, all property in the county on which the tax is in arrears. However, this
requirement does not apply in Baltimore City, and statute is silent as to any timeline for
the sale. The time for the tax sale is established by local law. Failure of the collector to sell
the property within the two-year period does not affect the validity or collectability of any
tax or the validity of any sale subsequently made.
The tax collector sets specified terms for the auction and publishes public notice of the
tax sale, including requirements for potential bidders.
When a property is purchased at a tax sale, the purchaser must pay to the tax collector any
delinquent taxes, penalties, sale expenses, and a high-bid premium, if any. The terms for
payment of the purchase price and high-bid premiums, if any, are determined by the
collector.
Generally, the property owner has the right to redeem the property within six months from
the date of the tax sale by paying the total lien amount on the property, delinquent taxes,
penalties, interest, and certain expenses of the purchaser. If the owner redeems the property,
the purchaser is refunded the amounts paid to the collector plus the interest and expenses.
If the owner does not redeem the property, the purchaser has the right to foreclose on the
property after the six-month right of redemption period has passed. Under most
circumstances, if the right to foreclose is not exercised by the purchaser within two years,
the certificate of sale is void, and the purchaser is not entitled to a refund of any monies
paid to the collector.
Chapter 440 of 2020 requires the State Department of Assessments and Taxation (SDAT)
to issue a report each year that includes an analysis and summary of the information
collected through an annual tax sale survey. Each county must provide SDAT all specified
information on the form that SDAT provides. For more information regarding tax sales in
the State – see 2020 Annual Maryland Tax Sale Report.
HB 981/ Page 4


Statutes affected:
Text - First - Prince George's County - Tax Sales - Limited Auction PG 413-21: 14-817 Tax Property, 14-833 Tax Property
Text - Third - Prince George's County - Tax Sales - Limited Auction PG 413-21: 14-817 Tax Property, 14-833 Tax Property