HB 4056

Requires counties to establish a process for handling the surplus proceeds from property tax lien foreclosure sales.

Bill Text

• A-Engrossed
• Enrolled
• House Amendments to Introduced
• Introduced

Requires counties to establish processes for handling surplus proceeds from property tax lien foreclosure sales.

Original Bill Text

Sponsors#

Chief Sponsors: Charlie Conrad

Co-Sponsors: Ed Diehl, Christine Goodwin, Jeffrey Helfrich, James Hieb, Bobby Levy, Rick Lewis, Kevin Mannix, Emily McIntire, E. Werner Reschke, Boomer Wright, Emerson Levy, John Lively, Virgle Osborne, Mark Owens, Janeen Sollman, Mark Meek, Cedric Hayden

Overview#

Digest: The Act would require counties to set up a way to handle surplus proceeds from tax lien foreclosure sales. The Act would pause the transfer to counties of deeds to foreclosed property. The Act would make the Department of Revenue work with county tax officers to set up a uniform way to handle the surpluses. The Act would require a report from the department with suggestions for bills for the 2025 session. (Flesch Readability Score: 61.6). [Digest: The Act lets people claim a tax foreclosure surplus. (Flesch Readability Score: 75.5).] [Allows former owner, or their heirs or successors, to claim from the county any surplus from a property tax foreclosure. Establishes conditions and time limitations for making a claim. Requires county tax foreclosure notices to include information about claims.] Requires counties to establish a process for handling the surplus proceeds from property tax lien foreclosure sales. Suspends the operation of the statute under which deeds to such properties are conveyed to the counties through December 31, 2025. Directs the Department of Revenue to coordinate with county tax officers to determine a detailed uniform process for handling surplus proceeds that complies with the United States Supreme Court in Tyler v. Hennepin County, Minnesota, 598 U.S. 631 (2023). Requires the department to submit a report containing the determinations and recommendations for legislation to the Legislative Assembly not later than September 15, 2024. Takes effect on the 91st day following adjournment sine die.

Public Testimony

Legislative History