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LD 745

An Act To Allow A Municipality To Sell Tax-Acquired Property In Any Manner Authorized By The Municipality'S Legislative Body

132nd Legislature (2025-2026) Introduced by Michael Lemelin

Allows a municipality to sell tax-acquired property by any sale method its legislative body authorizes, giving local governments flexibility to tailor and speed property sales.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
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Bill Summary · LD 745

Summary: LD 745 — An Act To Allow a Municipality To Sell Tax-Acquired Property In Any Manner Authorized By the Municipality's Legislative Body

Overview

LD 745 proposes to broaden how municipalities may dispose of tax-acquired property by authorizing the municipal legislative body to approve any sale method the body itself permits. The bill aims to give local governments flexibility in selling foreclosed or tax-reverted properties, aligning sale procedures with local needs and preferences.

Purpose and Intent

  • Allow a municipality to sell tax-acquired property using any method that its legislative body authorizes.
  • Shift from potentially constrained or prescribed sale procedures to a framework where the governing body determines acceptable sale methods.

Key Provisions (as stated)

  • The sale of tax-acquired property would be permissible by any sale method specifically authorized by the municipality’s legislative body.
  • The bill does not prescribe particular sale methods within the statute itself; instead, it delegates the choice of method to the local legislative authority.

Note: The text provided does not enumerate specific sale methods or conditions beyond enabling the legislative body to approve the sale method.

Fiscal Impact

  • Preliminary Fiscal Impact Statement indicates “No fiscal impact.”
  • Fiscal Note Required: No.
  • Therefore, per the fiscal note, the bill is not projected to have a statewide cost or savings under the current analysis.

Affected Parties

  • Primary: Municipalities that hold tax-acquired properties (foreclosed or tax-reverted properties).
  • Secondary: Potential purchasers or bidders of tax-acquired properties, property owners whose properties are tax-acquired, and taxpayers in municipalities where such sales occur.

Procedural Timeline and Status

  • Introduced: February 25, 2025.
  • Referred to: Committee on Taxation (February 25, 2025).
  • Work Session: March 25, 2025.
  • Committee Action: Voted ONTP (Ought Not to Pass) on March 25, 2025; Reported Out - ONTP on April 2, 2025.
  • Legislative Action: Carried over to the next session in the same posture on March 21, 2025 (Joint Order SP 519).
  • Final Status: Placed in Legislative Files (DEAD) pursuant to Joint Rule 310.3 on April 8, 2025.

Potential Implications

  • If enacted in the future, municipalities could tailor sale procedures to local circumstances, potentially speeding sales, increasing bidding options, or aligning with municipal revenue strategies.
  • The lack of a prescribed set of methods could lead to varied practices across municipalities.
  • Without a statewide standard, buyers might face inconsistencies in sale processes between different towns or cities.

Notes

  • The bill was sponsored by Rep. Lemelin of Chelsea and considered by the Taxation Committee.
  • Current status shows the bill is dead under the current legislative cycle, with no fiscal impact projected in the accompanying note.

Compiled from official sources — confirm details with the bill’s official record.

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