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Bill

A 3901

Relates to the distribution of surplus proceeds from a tax foreclosure sale

2025 Regular Session Introduced by Dave McDonough and 2 co-sponsors

Bill A 3901 ensures fair distribution of surplus funds from tax foreclosure sales, allowing former owners to reclaim excess proceeds and improving local government processes.

REFERRED TO REAL PROPERTY TAXATION
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WeVote Research Nonpartisan
Bill Summary · A 3901

Summary of Bill A 3901

Bill Number: A 3901
Title: Relates to the distribution of surplus proceeds from a tax foreclosure sale
Status: Referred to Real Property Taxation
Introduced: January 30, 2025
Classification: Bill

Purpose and Intent

Bill A 3901 aims to clarify and improve the process for distributing surplus proceeds generated from tax foreclosure sales. The bill seeks to ensure that any excess funds resulting from the sale of properties that have been foreclosed due to unpaid taxes are allocated fairly and transparently.

Key Provisions

  • Surplus Proceeds Distribution: The bill outlines specific guidelines for how surplus proceeds from tax foreclosure sales should be distributed. This includes:

    • Establishing a clear hierarchy for claims on surplus funds.
    • Providing a mechanism for former property owners to claim any surplus after the tax debts have been settled.

  • Notification Requirements: The bill mandates that local governments must notify former property owners of their potential entitlement to surplus proceeds, ensuring that they are aware of their rights.

  • Timeframe for Claims: The legislation specifies a timeframe within which former owners can file claims for surplus proceeds, promoting timely resolution and distribution of funds.

Who Would Be Affected

  • Former Property Owners: Individuals who have lost their properties due to tax foreclosure will benefit from clearer processes to reclaim any surplus funds.

  • Local Governments: Municipalities conducting tax foreclosure sales will need to adjust their procedures to comply with the new guidelines set forth in the bill.

  • Tax Foreclosure Sale Participants: Buyers and investors involved in tax foreclosure sales will also be impacted, as the distribution of surplus proceeds may affect their financial outcomes.

Procedural and Timeline Aspects

  • Legislative Process: As of January 30, 2025, the bill has been referred to the Real Property Taxation committee for further consideration. The timeline for subsequent actions, such as hearings or votes, will depend on the committee's schedule.

  • Related Legislation: Bill A 3901 is related to prior-session Bill A 5607, which may provide context or background on the legislative intent and previous discussions surrounding the distribution of surplus proceeds.

Conclusion

Bill A 3901 represents an important step towards ensuring fairness and transparency in the distribution of surplus proceeds from tax foreclosure sales. By establishing clear guidelines and notification requirements, the bill aims to protect the rights of former property owners while also streamlining the process for local governments. As the bill progresses through the legislative process, its implications for affected stakeholders will become clearer.

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

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