Senate Bill 1431 Summary

• Creates a new process allowing property owners to request an "excess proceeds sale" when their right to redeem a tax lien is being foreclosed, if the property value is likely to exceed the tax debt by more than $2,500.

• Establishes that courts must determine whether an excess proceeds sale is reasonable based on property value estimates and costs provided by both the certificate of purchase holder and property owner.

• Requires notice to property owners informing them of their right to request an excess proceeds sale before foreclosure proceedings commence.

• Adds Article 6 to Title 42, Chapter 18 establishing procedures for conducting excess proceeds sales, including public auction requirements, bidding rules, timeline limits (sale within 60 days of judgment), and deed issuance.

• Directs proceeds from excess proceeds sales to be distributed to: the qualified entity conducting the sale, the certificate of purchase holder for taxes and costs, other state lien holders, and remaining funds to the property owner whose redemption right was foreclosed.