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2017 SESSION
17101474DBe it enacted by the General Assembly of Virginia:
1. That § 58.1-3975 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3975. Nonjudicial sale of tax delinquent real properties of minimal size and value.
A. Notwithstanding any other provision of this title,
the treasurer or other officer responsible for collecting taxes may sell, at
public auction, any unimproved parcel of real property that is assessed at less
than $10,000 $5,000, provided that the taxes on such parcel are
delinquent on December 31 following the third anniversary of the date on which
such taxes have become due.
B. The treasurer or other officer responsible for
collecting taxes may in addition sell, at public auction, any parcel of real
property that is assessed at no less than $5,000 but less than $20,000,
provided that the taxes on such parcel are delinquent on December 31 following
the third anniversary of the date on which such taxes have become due, [ it
is not subject to a recorded mortgage or deed of trust lien, ] and
either such parcel (i):
1. Is unimproved and measures less than 4,000 square
feet (.0918 acres acre), or (ii);
2. Is unimproved and is determined to be unsuitable for
building due to the size, shape, zoning or soils, floodway, or other
environmental designations of the parcel made by the locality's
zoning administrator or other official designated by the locality to administer
its zoning ordinance and carry out the duties set forth in subdivision A 4 of §
15.2-2286;
3. Has a structure on it that has been condemned by the local building official pursuant to applicable law or ordinance;
4. Has been declared by the locality a nuisance as that term is defined in § 15.2-900;
5. Contains a derelict building as that term is defined in § 15.2-907.1; or
6. Has been declared by the locality to be blighted as that term is defined in § 36-3.
For purposes of determining the area of any parcel, the area
or acreage found in the locality's land book shall be determinative. [ The
governing body of any county, city, or town may, by ordinance, increase the
maximum assessed value as provided in this subsection no less than $5,000 but
less than $50,000. ]
Prior C. At least 30 days prior to conducting
such a sale under this section, the treasurer or other
officer responsible for collecting taxes shall send:
1. Send notice by certified or registered mail to the
record owner or owners of such property and anyone appearing to have an
interest in the property at their last known address as contained in the
records of the treasurer or other officer responsible for collecting taxes;
and shall post
2. Post notice of such sale at the property location,
if such property has frontage on any public or private street, and at the
circuit courthouse of the locality at least 30 days prior to such sale.
D. The treasurer or other officer responsible for
collecting taxes shall also cause a notice of sale to be published in the legal
classified section of a newspaper of general circulation in the locality in
which the property is located at least seven days but no more than 21 days
prior to the sale; however, if the annual taxes assessed on the property are
less than $500, such notice may be placed, in lieu of publication, on the
treasurer's or local government's website beginning at least 21 days prior to
sale and through the date of sale. The pro rata costs of posting notice,
publication, and mailing shall become a part of the tax and shall be
collected if payment is made by the owner in redemption of such real
property.
E. The treasurer or other officer responsible for collecting taxes may advertise and sell multiple parcels at the same time and place pursuant to one notice of sale.
F. The treasurer or other officer responsible for
collecting taxes may enter into an agreement with the owner of such parcel for
payment over time, not to exceed 12 months.
G. The owner of any property listed, or other
interested party, may redeem it at any time prior to the date of the sale
by paying all accumulated taxes, penalties, interest, and costs thereon,
including the pro rata costs of publication and mailing reasonable
attorney fees. Partial payment of delinquent taxes, penalties, interest,
or costs shall be insufficient to redeem the property, and shall not
operate to suspend, invalidate, or nullify any sale brought pursuant to
this section.
H. At the time of sale, the treasurer or other officer
responsible for collecting taxes shall sell to the highest bidder at public
auction each parcel that has not been redeemed by the owner. Such sale shall be
free and clear of the locality's tax lien, but shall not affect
easements or other rights of record recorded prior to the date of sale
or liens recorded prior to the date of sale unless the treasurer has given the
lienholder written notice of the sale at least 30 days prior to the sale, at
the lienholder's address of record and through his registered agent, if any.
The treasurer or other officer responsible for collecting taxes shall tender a
treasurer's special warranty deed pursuant to this section to
effectuate the conveyance of the parcel to the highest bidder.
I. If the sale proceeds are insufficient to pay the
taxes amounts owed in full, the remaining delinquent tax amount
shall remain the personal liability of the former owner treasurer or
other officer responsible for collecting taxes may remove the unpaid taxes from
the books and mark the same as satisfied. The sale proceeds shall be
applied first to the costs of sale, then to the taxes, penalty, and
interest, and fees due on the parcel, and thereafter to any other taxes
or other charges owed by the former owner to the jurisdiction.
J. Any excess proceeds shall remain the property of the
former owner, subject to claims of creditors, and shall be kept by the
treasurer or other officer responsible for collecting taxes in an
interest-bearing escrow account. If any petition for excess proceeds is made
to the treasurer or other officer responsible for collecting taxes under this
section, the treasurer or officer holding the funds shall forward the funds to
the locality's circuit court clerk to be impleaded along with a copy of the
claim for excess proceeds. A copy of such transmission shall be forwarded to
the claimant. The burden of scheduling a hearing with the circuit court on the
claim shall be that of the claimant and shall be made within two years of the
date of the sale of the property that generated the excess funds. In the event
that funds remain with the court two years after the date of the sale, the
locality may petition to have the funds distributed to the locality's general
fund. If no claim for payment of excess proceeds is made by the former
owner within two years after the date of sale, the treasurer or other
responsible officer shall deposit the excess proceeds in the jurisdiction's
general fund.
K. If the sale does not produce a successful bidder, the treasurer or other responsible officer shall add the costs of sale incurred by the jurisdiction to the delinquent real estate account.