WEST virginia legislature
2019 regular session
Committee Substitute
for
Senate Bill 405
Senator Sypolt, original sponsor
[Originating in the Committee on Government Organization; Reported on February 8, 2019]
A BILL to amend and reenact §11A-3-23, §11A-3-25, §11A-3-36, §11A-3-56, §11A-3-57, and §11A-3-58 of the Code of West Virginia, 1931, as amended, all relating to the sale of tax liens by the State Auditor; increasing the limit to $500 on additional expenses a purchaser may recover in preparing notice list for redemption of purchase and for licensed attorney’s title examination; and requiring any amounts above the surplus of 20 percent of the gross amount of the operating fund be paid to the General School Fund at the end of each fiscal year.
Be it enacted by the Legislature of West Virginia:
ARTICLE 3. SALE OF TAX LIENS AND NONENTERED, ESCHEATED, AND WASTE AND UNAPPROPRIATED LANDS.
§11A-3-23. Redemption from purchase; receipt; list of redemptions; lien; lien of person redeeming interest of another; record.
(a) After the sale of any tax lien on any real estate pursuant to §11A-3-5 of this code, the owner of, or any other person who was entitled to pay the taxes on, any real estate for which a tax lien on the real estate was purchased by an individual may redeem at any time before a tax deed is issued for the real estate. In order to redeem, he or she shall pay to the State Auditor the following amounts:
(1) An amount equal to the taxes, interest, and charges due on the date of the sale, with interest at the rate of one percent per month from the date of sale;
(2) All other taxes which have since been paid by the purchaser, his or her heirs or assigns, with interest at the rate of one percent per month from the date of payment;
(3) Any additional expenses incurred from January 1 of
the year following the sheriff's sale to the date of redemption for the
preparation of the list of those to be served with notice to redeem and any
written documentation used for the preparation of the list, with interest at
the rate of one percent per month from the date of payment for reasonable legal
expenses incurred for the services of an attorney who has performed an
examination of the title to the real estate and rendered written documentation
used for the preparation of the list. Provided, That the The
maximum amount the owner or other authorized person shall pay, excluding the
interest, for the expenses incurred for the preparation of the list of those to
be served required by §11A-3-19 of this code is $500. Provided
however, That the An attorney may only charge a fee for
legal services actually performed and must certify that he or she conducted an
examination to determine the list of those to be served required by §11A-3-19 of
this code; and
(4) All additional statutory costs paid by the purchaser.
(b) Where the State Auditor has not received from the
purchaser satisfactory proof of the expenses incurred in preparing the notice
to redeem, and any written documentation used for the preparation of the list
of those to be served with notice to redeem, including the certification
required in §11A-3-23(a)(3) of this code, incident thereto, in the
form of receipts or other evidence of legal expenses, incurred as provided in §11A-3-19
of this code, the person redeeming shall pay the State Auditor the sum of $300
$500 plus interest at the rate of one percent per month from January 1
of the year following the sheriff's sale for disposition by the sheriff
pursuant to the provisions of §11A-3-10, §11A-3-24,
§11A-3-25, and §11A-3-32 of this code.
(c) The person redeeming shall be given a receipt for the payment and the written opinion or report used for the preparation of the list of those to be served with notice to redeem required by §11A-3-19 of this code.
(d) Any person who, by reason of the fact that no provision is made for partial redemption of the tax lien on real estate purchased by an individual, is compelled in order to protect himself or herself to redeem the tax lien on all of the real estate when it belongs, in whole or in part, to some other person, shall have a lien on the interest of that other person for the amount paid to redeem the interest. He or she shall lose his or her right to the lien, however, unless within 30 days after payment he or she files with the clerk of the county commission his or her claim in writing against the owner of the interest, together with the receipt provided in this section. The clerk shall docket the claim on the judgment lien docket in his or her office and properly index the claim. The lien may be enforced as other judgment liens are enforced.
(e) Before a tax deed is issued, the county clerk may accept, on behalf of the State Auditor, the payment necessary to redeem any real estate encumbered with a tax lien and write a receipt. The amount of the payment necessary to redeem any real estate encumbered with a tax lien shall be provided by the State Auditor and the State Auditor shall update the required payments plus interest at least monthly.
(f) On or before the 10th day of each month, the county clerk shall deliver to the State Auditor the redemption money paid and the name and address of the person who redeemed the property on a form prescribed by the State Auditor.
§11A-3-25. Distribution of surplus to purchaser.
(a) Where the land has been redeemed in the manner set forth in §11A-3-23 of this code, and the State Auditor has delivered the redemption money to the sheriff pursuant to §11A-3-24 of this code, the sheriff shall, upon receipt of the sum necessary to redeem, promptly notify the purchaser or his or her heirs or assigns, by mail, of the fact of the redemption and pay to the purchaser or his or her heirs or assigns the following amounts:
(1) From the sale of tax lien surplus fund provided by §11A-3-10 of this code;
(A) The surplus of money paid in excess of the amount of the taxes, interest, and charges paid by the purchaser to the sheriff at the sale; and
(B) The amount of taxes, interest, and charges paid by the purchaser on the date of the sale, plus the interest at the rate of one percent per month from the date of sale to the date of redemption;
(2) All other taxes on the land which have since been paid by the purchaser or his or her heirs or assigns, with interest at the rate of one percent per month from the date of payment to the date of redemption;
(3) Any additional reasonable expenses that the
purchaser may have incurred from January 1 of the year following the sheriff's
sale to the date of redemption for the preparation of the list of those to be
served with notice to redeem and any written documentation used for the
preparation of the list, in accordance with §11A-3-19 of this code, with
interest at the rate of one percent per month from the date of payment, but the
amount which shall be paid, excluding the interest, for the expenses incurred
for the preparation of the list of those to be served with notice to redeem
required by §11A-3-19 of this code shall not exceed the amount actually
incurred by the purchaser or $300 $500, whichever is less. Provided,
That the An attorney may only charge a fee for legal
services actually performed and must certify that he or she conducted an
examination to determine the list of those to be served required by §11A-3-19
of this code; and
(4) All additional statutory costs paid by the purchaser.
(b)(1) The notice shall include:
(A) A copy of the redemption certificate issued by the State Auditor;
(B) An itemized statement of the redemption money to which the purchaser is entitled pursuant to the provisions of this section; and
(C) Where, at the time of the redemption, the State Auditor has not received from the purchaser satisfactory proof of the expenses incurred in preparing the list of those to be served with notice to redeem and any written documentation used for the preparation of the list in accordance with §11A-3-19 of this code, the State Auditor shall also include instructions to the purchaser as to how these expenses may be claimed.
(2) Subject to the limitations of this section, the purchaser is entitled to recover any expenses incurred in preparing the list of those to be served with notice to redeem and any written documentation used for the preparation of the list from January 1 of the year following the sheriff's sale to the date of the sale to the date of the redemption.
(c) Where, pursuant to §11A-3-23 of this code,
the State Auditor has not received from the purchaser satisfactory proof of the
expenses incurred in preparing the list of those to be served with notice to
redeem, including written documentation used for preparation of the list, in
the form of receipts or other evidence within 30 days from the date of
notification by the State Auditor, the sheriff shall refund the amount to the person
redeeming and the purchaser is barred from any claim. Where, pursuant to that
section, the State Auditor has received from the person redeeming and therefore
delivered to the sheriff the sum of $300 $500 plus interest at
the rate of one percent per month from January 1 of the year following the
sheriff's sale to the date of the sale to the date of redemption, and the
purchaser provides the sheriff within 30 days from the date of notification
satisfactory proof of the expenses, and the amount of the expenses is less than
the amount paid by the person redeeming, the sheriff shall refund the
difference to the person redeeming.
§11A-3-36. Operating fund for land department in Auditor's office.
(a) The Auditor shall establish a special operating fund for the land department in his or her office. He or she shall pay into such fund all redemption fees, all publication or other charges collected by him or her, if such charges were paid by or were payable to him or her, the unclaimed surplus proceeds received by him or her from the sale of delinquent and other lands pursuant to this article, and all payments made to him or her under the provisions of 11A-3-64 and 11A-3-65 of this code, except such part thereof as represents state taxes and interest. All payments so excepted shall be credited by the Auditor to the General School Fund or other proper state fund.
(b) The operating fund shall be used by the Auditor in
cases of deficits in land sales to pay any balances due to deputy commissioners
for services rendered, and any unpaid costs, including those for publication
which have accrued or will accrue under the provisions of this article, to pay
fees due surveyors under the provisions of §11A-3-43 of this code, and to pay
for the operation and maintenance of the land department in his or her
office. The surplus over and above the amount of $100,000, remaining in the
fund at the end of any fiscal year, shall be paid by the Auditor into the
general school fund. The surplus over and above the amount of 20
percent of gross revenue from operation of the fund from the prior year,
remaining at the end of any fiscal year, shall be paid by the Auditor into the General
School Fund.
§11A-3-56. Redemption from purchase; receipt; list of redemptions; lien; lien of person redeeming interest of another; record.
(a) After the sale of any tax lien on any real estate
pursuant to §11A-3-45 or §11A-3-48 of this code, the owner of, or any
other person who was entitled to pay the taxes on, any real estate for which a
tax lien thereon was purchased by an individual, may redeem at any time before
a tax deed is issued therefor. In order to redeem, he or she must pay to
the deputy commissioner the following amounts: (1) An amount equal to the
taxes, interest, and charges due on the date of the sale, with interest thereon
at the rate of one percent per month from the date of sale; (2) all other taxes
thereon, which have since been paid by the purchaser, his or her heirs
or assigns, with interest at the rate of one percent per month from the date of
payment; (3) such additional expenses as may have been incurred in preparing the
list of those to be served with notice to redeem, and for any licensed
attorney’s title examination incident thereto, with interest at the rate of
one percent per month from the date of payment, but the amount he or she
shall be required to pay, excluding said interest, for such expenses incurred
for the preparation of the list of those to be served with notice to redeem
required by §11A-3-52 of this code, and for any licensed
attorney’s title examination incident thereto, shall not exceed $200
$500. An attorney may only charge a fee for legal services actually
performed and must certify that he or she conducted an examination to determine
the list of those to be served required by §11A-3-52 of this code; (4) all
additional statutory costs paid by the purchaser; and (5) the deputy
commissioner's fee and commission as provided by §11A-3-66 of this code.
Where the deputy commissioner has not received from the purchaser satisfactory
proof of the expenses incurred in preparing the notice to redeem, and or
of any examination of title licensed attorney’s title
examination incident thereto, in the form of receipts or other evidence
thereof, the person redeeming shall pay the deputy commissioner the sum of $200
$500 plus interest thereon at the rate of one percent per month from the
date of the sale for disposition pursuant to §11A-3-57, §11A-3-58, and
§11A-3-64 of this code. Upon payment to the deputy commissioner of those
and any other unpaid statutory charges required by this article, and of any
unpaid expenses incurred by the sheriff, the Auditor and the deputy
commissioner in the exercise of their duties pursuant to this article, the
deputy commissioner shall prepare an original and five copies of the receipt for
the payment and shall note on said receipts that the property has been
redeemed. The original of such receipt shall be given to the person redeeming.
The deputy commissioner shall retain a copy of the receipt and forward one copy
each to the sheriff, assessor, the Auditor, and the clerk of the county
commission. The clerk shall endorse on the receipt the fact and time of such
filing and note the fact of redemption on his or her record of
delinquent lands.
(b) Any person who, by reason of the fact that no provision is made for partial redemption of the tax lien on real estate purchased by an individual, is compelled in order to protect himself or herself to redeem the tax lien on all of such real estate when it belongs, in whole or in part, to some other person, shall have a lien on the interest of such other person for the amount paid to redeem such interest. He or she shall lose his or her right to the lien, however, unless within 30 days after payment he or she shall file with the clerk of the county commission his or her claim in writing against the owner of such interest, together with the receipt provided for in this section. The clerk shall docket the claim on the judgment lien docket in his or her office and properly index the same. Such lien may be enforced as other judgment liens are enforced.
§11A-3-57. Notice of redemption to purchaser; moneys received by sheriff.
(a) Upon payment of the sum necessary to redeem, the deputy commissioner shall promptly deliver to the sheriff the redemption money paid and the name and address of the purchaser, his or her heirs, or assigns.
(b) Of the redemption money received by the sheriff pursuant to this section, the sheriff shall hold as surplus to be disposed of pursuant to §11A-3-64 of this code an amount thereof equal to the amount of taxes, interest, and charges due on the date of the sale, plus the interest at the rate of one percent per month thereon from the date of sale to the date of redemption.
§11A-3-58. Distribution to purchaser.
(a) Where the land has been redeemed in the manner set
forth in §11A-3-56 of this code, and the deputy commissioner has
delivered the redemption money to the sheriff pursuant to §11A-3-57 of this
code, the sheriff shall, upon delivery of the sum necessary to redeem,
promptly notify the purchaser, his or her heirs or assigns, by mail, of
the redemption and pay to the purchaser, his or her heirs or assigns,
the following amounts: (1) The amount paid to the deputy commissioner at the
sale; (2) all other taxes thereon, which have since been paid by the purchaser,
his or her heirs or assigns, with interest at the rate of one percent
per month from the date of payment; (3) such additional expenses as may have
been incurred in preparing the list of those to be served with notice to
redeem, and for any licensed attorney’s title examination
incident thereto, with interest at the rate of one percent per month from the
date of payment, but the amount which shall be paid, excluding said interest,
for such expenses incurred for the preparation of the list of those to be
served with notice to redeem required by §11A-3-52 of this code, and for
any licensed attorney’s title examination incident thereto, shall not
exceed $200 $500; and (4) all additional statutory costs paid by
the purchaser.
(b) (1) The notice shall include:
(A) A copy of the redemption certificate issued by the deputy commissioner;
(B) An itemized statement of the redemption money to which the purchaser is entitled pursuant to the provisions of this section; and
(C) Where, at the time of the redemption, the deputy
commissioner has not received from the purchaser satisfactory proof of the
expenses incurred in preparing the list of those to be served with notice to
redeem, and or for any licensed attorney’s title
examination incident thereto, the deputy commissioner shall also include
instructions to the purchaser as to how these expenses may be claimed.
(2) Subject to the limitations of this section, the purchaser is entitled to recover any expenses incurred in preparing the list of those to be served with notice to redeem and for any licensed attorney’s title examination incident thereto from the date of the sale to the date of the redemption.
(c) Where, pursuant to §11A-3-56 of this code,
the deputy commissioner has not received from the purchaser satisfactory proof
of the expenses incurred in preparing the notice to redeem, in the form of receipts or other evidence of legal
expenses, and or for
any licensed attorney’s title examination
and rendered written documentation used for the preparation of the list incident thereto, in the form of receipts or other evidence
thereof, and therefore received from the purchaser as required by said section
and delivered to the sheriff the sum of $200 $500 plus interest
thereon at the rate of one percent per month from the date of the sale to the
date of redemption, and the sheriff has not received from the purchaser such
satisfactory proof of such expenses within 30 days from the date of
notification, the sheriff shall refund such amount to the person redeeming and
the purchaser is barred from any claim thereto. Where, pursuant to §11A-3-56
of this code, the deputy commissioner has received from the purchaser and
therefore delivered to the sheriff said sum of $200 $500 plus
interest thereon at the rate of one percent per month from the date of the sale
to the date of redemption, and the purchaser provides the sheriff within 30
days from the date of notification such satisfactory proof of such expenses,
and the amount of such expenses is less than the amount paid by the person
redeeming, the sheriff shall refund the difference to the person redeeming.