SB 386

Bill Subjects

Financial Institutions Land And Landowners Property Taxes Generally

Abstract

Makes various changes to the statutes governing land banks that concern certain land bank powers, objectives, and duties. Provides (except in a county containing a consolidated city) that only a majority of directors appointed to the board of a land bank must be residents of the county, second class city, or third class city. Provides, in the case of a land bank created by an interlocal agreement, that only a majority of the members of the board of the land bank must be residents of the applicable eligible units that establish the land bank. Provides that a land bank may establish advisory committees composed of specified community members to consult with and advise the land bank on: (1) properties within the territory of the land bank that are imposing the greatest harm on residents and neighborhoods; (2) resident and neighborhood priorities for new uses of land bank properties; and (3) options for potential transferees of land bank properties. Provides, subject to certain limitations, that a land bank may use an interlocal agreement to establish processes to improve the quality of title and marketability of property the land bank owns to extinguish any liens that exist on the property. Provides that, if a land bank enters into an interlocal agreement, any employees of an eligible unit who may be contracted to provide staffing services to the land bank pursuant to the interlocal agreement retain their status as public employees of the eligible unit. Allows a county fiscal body in a county in which there is at least one land bank (except in a county containing a consolidated city) to adopt an ordinance requiring every person who wishes to participate in a tax sale as a bidder to pay a neighborhood investment fee of not more than $150. Provides that, if a county fiscal body adopts an ordinance authorizing the imposition of a neighborhood investment fee, the county treasurer shall establish the neighborhood investment fee fund (fund) and specifies the manner in which neighborhood investment fees collected are to be distributed from the fund to land banks. Allows a county fiscal body in a county in which there is at least one land bank (except in a county containing a consolidated city) to adopt an ordinance to impose, in addition to the 5% penalty for delinquent real property taxes, an additional penalty of not more than 3% for a total penalty that may not exceed 8% of the amount of delinquent real property taxes (additional penalty ordinance). Provides that delinquent tax payments attributable to real property used as a principal place of residence and receiving the homestead standard deduction for the most recent assessment date are exempt from an additional penalty ordinance. Specifies the manner in which the amounts collected attributable to an additional penalty imposed on delinquent real property taxes are to be distributed to land banks.