SB 775

After property taxes become delinquent, present law requires the county trustee to collect the taxes from the property owner. If a lien is properly placed on the property through the judicial system, t he court must order a sale o f the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. The tax sale proceeds must be distributed in the following order : ( 1 ) Amounts owing the delinquent tax attorneys prosecuting the ca use . ( 2 ) The costs of the proceeding exceeding the attorneys' fees . ( 3 ) Amounts owing the taxing entities which are parties in the cause . ( 4 ) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to the notices sent to them and for which no action has been filed, divided prorated upon the amount of the base taxes due each . ( 5 ) Any other property taxes and expenses owing any taxing entity secured by a tax li en on the parcel . ( 6 ) Any remaining proceeds to any interested person that file s a motion with the court requesting disbursement of any excess sale proceeds , subject to certain priority order. This bill adds a new fourth priority distribution and shifts down the current fourth, fifth and sixth priorities above. The new fourth priority is that 10% of any remaining proceeds must provid e tax relief for homeowners who are elderly low-income, disabl ed, or a disabled veteran or widow of a disabled veteran .