SB 538 — Allowing certain entities to purchase qualifying tax-delinquent properties before they are offered at public auction

WEST VIRGINIA LEGISLATURE REGULAR SESSION Enrolled Committee Substitute for Senate Bill 538 BYSENATORSHELTON AFULLER [Reported[Passed MarchApril 14,3, 2025,2025; from the Committee on Government Organization] CS for SB 538 A BILL to amend and reenact §31-18E-9 of the Code of West Virginia, 1931, as amended, relating to removing the sunset date on the provision granting the right of first refusal to land reuse agencies and municipal land banks for acquiring certain tax-delinquent properties that permits these entities to purchase qualifying tax-delinquent properties before they are offered at public auction;

in effect from passage] Enr CS for SB 538 AN ACT to amend and reenact §31-18E-9 of the Code of West Virginia, 1931, as amended, relating to removing the sunset date on the provision granting the right of first refusal to land reuse agencies and municipal land banks for acquiring certain tax-delinquent properties that permits these entities to purchase qualifying tax-delinquent properties before they are offered at public auction;

— (1) A land reuse agency or municipal land bank may acquire real property by purchase contracts, lease purchase agreements, Enr CS for SB 538 installment sales contracts, and land contracts and may accept transfers from municipalities or counties upon terms and conditions as agreed to by the land reuse agency or municipal land bank and the municipality or county.

If any unredeemed tract or lot or undivided interest in Enr CS for SB 538 real estate offered for sale at public auction remain unsold following the auction, the Auditor shall provide a list of all of said real estate within a land reuse or municipal land bank jurisdiction to the land reuse agency or municipal land bank and the land reuse agency or municipal land bank shall be given an opportunity to purchase the tax lien and pay the taxes, interest, and charges due for any unredeemed tract or lot or undivided interest therein as if the land reuse agency or municipal land bank purchased the tax lien at the tax sale.

Any such property owner shall have a period of 120 days from the receipt of notice, actual or constructive, to express an interest in purchasing the tax-delinquent property from the land reuse agency or municipal land bank for an amount Enr CS for SB 538 equal to the amount paid for the property plus expenses incurred by the land reuse agency or municipal land bank:

Provided, That the land reuse agency or municipal land bank may refuse to sell the property to the adjacent property owner that expressed interest in the tax-delinquent property if that property owner or an entity owned by the property owner or its directors is delinquent on any state and local taxes or municipal fees on any of their property meets any of the criteria expressed in §11A-3-45 or §11A-3-48 of this code.

(4) EffectiveAs Julysoon 1,as 2025,possible theafter provisionsJanuary 1 of subdivisionseach (2)year, andany (3)land ofreuse agency or municipal land bank which exercises the authority granted by this subsection shall sunsetsubmit andto havethe noWest furtherVirginia forceLand Stewardship Corporation an annual report on the entity’s activities related to the purchase of tax-delinquent properties and effect.any benefits realized from the authority granted by this subsection.

(5) Prior to (4) As soon as possible after January 1 2025 of each year, any land reuse agency or municipal land bank which exercises the authority granted by this subsection shall submit to the Joint Committee on Government and Finance a West Virginia Land Stewardship Corporation an annual report on the entity’s activities related to the purchase of tax-delinquent properties and any benefits realized from the authority granted by this subsection.

Enr CS for SB 538 The Clerk of the Senate and the Clerk of the House of Delegates hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the Senate ...............................................................

Clerk of the House of Delegates Originated in the Senate.

In effect from passage.

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President of the Senate ...............................................................

Speaker of the House of Delegates __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2025.

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Governor 5