SB 683: Relating to land sales by Auditor - West Virginia

sb683 sfa rucker _1 3-20 adopted.htm → sb683 sfat rucker _1 3-21 adopted.htm · 8 edits

MODERATE

This amendment updates West Virginia's tax lien sale process by adjusting key dates, adding personal service requirements for notices, introducing a buyer's fee for private auctioneers, and modifying eligibility criteria for bidders to exclude those with code enforcement violations or tax delinquencies.

Scope change

The bill now explicitly covers amendments to multiple sections including §11A-2-14, §11A-3-2, §11A-3-44, §11A-3-45, §11A-3-46, §11A-3-48, §11A-3-55, and §11A-3-65, expanding its scope to address the entire tax lien sale lifecycle.

TIMELINE

Adjusted deadlines for presenting delinquent lists to county commissions (now May 15) and certifying to the Auditor (now June 1), and changed the Auditor's certification window from March-August to March-July.

REQUIREMENT

Added requirement for sheriffs to personally serve notice of delinquency to property owners, residents, or occupants when certified mail is not signed for, ensuring owners receive actual notice before sale.

Added a $50 minimum payment requirement to the State Auditor and remainder to county sheriff for any tract purchased at auction, with a 10% buyer's fee payable to private auctioneers when engaged.

FISCAL

Introduced a $25 charge for preparing the second delinquent list and a $10 per addressee charge for mailing notices to cover administrative costs.

ELIGIBILITY

Modified bidder eligibility criteria to disqualify those with unpaid prior auction payments, delinquent taxes, code enforcement violations, pending legal proceedings, or failure to comply with raze/repair orders within five years.

Added restriction prohibiting citizens or entities from countries designated as 'Countries of Particular Concern' by the U.S. Department of State from participating in tax lien auctions.

ENFORCEMENT

Changed unsold land disposition priority to favor adjacent landowners, municipalities, county commissions, and the Land Stewardship Corporation before general sale to any party.

DEFINITION

Added provision allowing the Auditor to engage a private auctioneer at their sole discretion when selling tax delinquent properties.

Committee Substitute → sb683 sfa rucker _1 3-20 adopted.htm · 6 edits

MODERATE

This bill amends West Virginia's tax lien sale process to add stricter eligibility requirements for bidders, introduce a buyer's fee when private auctioneers are used, require personal service of notice to property owners, and establish a new distribution of surplus funds from sales. The changes aim to reduce predatory bidding, ensure proper notice to owners, and generate additional revenue for state and local funds.

Scope change

The bill expands eligibility restrictions for bidders at tax auctions and adds new requirements for private auctioneer engagement and surplus fund distribution.

ELIGIBILITY

New eligibility criteria for bidders include restrictions on those with unpaid tax debts, code enforcement violations, or legal proceedings related to property ownership.

FISCAL

A 10 percent buyer's fee is now required when a private auctioneer is engaged and the sale exceeds the tax liability, paid to the auctioneer.

Surplus proceeds from tax sales are now distributed as 50 percent to the general school fund, 25 percent to the state's General Revenue Fund, and 25 percent to the Auditor's Land Operating Fund.

REQUIREMENT

Notice of impending sale must now be delivered by personal service to property owners, residents, or occupants rather than just certified mail.

A $50 minimum payment must be made to the State Auditor at the time of sale, with the remainder going to the county sheriff.

TIMELINE

The deadline for the Auditor to certify delinquent lands was changed from June 1 to July 1 of each year.

Engrossed Committee Substitute → Committee Substitute · 7 edits

MODERATE

This bill amends West Virginia's tax lien sale process to modernize procedures, introduce private auctioneer options, and strengthen notice requirements. Key changes include allowing State Auditors to hire private auctioneers with a 10% buyer's fee, requiring personal service of sale notices to property owners and residents, and modifying surplus fund distribution. The bill also adds eligibility restrictions for bidders and increases certain administrative fees.

Scope change

The bill expands the scope of tax lien sales by allowing private auctioneers and adding new bidder eligibility requirements, while extending notice requirements to include residents and occupants of properties.

REQUIREMENT

State Auditors may now hire private auctioneers to conduct tax lien sales, with highest bidders paying a 10% buyer's fee to the auctioneer when sale exceeds tax liability.

Sheriff's office must now deliver certified sale notices by personal service to property owners, residents, and occupants before selling delinquent property.

Added $25 certification fee for Auditor and $10 per addressee mailing fee to cover administrative costs of tax lien sales.

TIMELINE

Changed delinquent list certification deadline from June 15 to July 1, and second publication deadline from September 10 to September 15.

FISCAL

Modified surplus proceeds distribution: 50% to general school fund, 25% to state General Revenue Fund, and 25% to Auditor's Land Operating Fund.

ELIGIBILITY

New bidder eligibility requirements including registration with State Auditor, prohibitions on bidders with code enforcement violations, and restrictions on bidders from countries designated as Country of Particular Concern.

ENFORCEMENT

Enhanced notice procedures requiring personal service attempts before publication, with specific requirements for Class II property occupants.

Introduced Version → Engrossed Committee Substitute · 8 edits · Mar 21, 2025

MODERATE

The bill was significantly amended to expand its scope from tax lien sales to include additional property types, modify sale timelines, introduce private auctioneer options with buyer fees, add strict eligibility requirements for bidders, enhance notice delivery methods, and change how surplus funds from sales are distributed.

Scope change

The bill's scope was expanded from just tax liens and non-entered lands to include additional property types under delinquent tax liens, and the sale process was modified to allow private auctioneers under certain conditions.

TIMELINE

The deadline for certifying lands for sale was changed from July 1 to August 1, and the sale completion window was extended from 90 days to 150 days after certification.

REQUIREMENT

New eligibility requirements were added for bidders, including restrictions on those with unpaid taxes, code enforcement violations, or legal proceedings related to property ownership.

Additional fees were added to cover costs: $25 for preparing the delinquent list and $10 per addressee for mailing notices.

FISCAL

A buyer's fee of 10 percent of the bid amount must be paid to a private auctioneer if one is engaged and the sale exceeds the tax liability.

Payment distribution was changed so that $50 of each sale goes to the State Auditor and the remainder goes to the county sheriff.

Surplus proceeds from sales are now distributed as 50 percent to the general school fund, 25 percent to the state's General Revenue Fund, and 25 percent to the Auditor's Land Operating Fund.

ENFORCEMENT

New requirements mandate that sheriffs deliver certified notices of impending sale by personal service to owners, residents, or occupants of properties.

ELIGIBILITY

Nonprofit corporations with housing or public facility construction purposes are now eligible to bid and may be sold to instead of the highest bidder if their bid is within 5 percent of the highest bid.

Relating to land sales by Auditor

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