Amends TCA Section 13-6-102; Title 67, Chapter 5, Part 21; Title 67, Chapter 5, Part 24 and Title 67, Chapter 5, Part 25.

Under present law, when real property is sold to satisfy delinquent property taxes, the delinquent tax attorney must make a reasonable search of public records to seek to identify and locate all persons owning an interest in a parcel. The delinquent tax attorney must make a diligent effort to give actual notice of the proceedings to all interested persons. This bill adds a requirement that the delinquent tax attorney post a copy of the proceedings conspicuously at the parcel to be sold and send a copy of the proceedings by first-class mail addressed to "occupant" at the last known municipal address of the parcel.<br /> <br /> Present law generally requires the clerk of the court, acting for a tax entity or entities prosecuting a delinquent tax suit, to bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid at the delinquent tax sale. This bill adds that the clerk's bid must include the amount of any applicable receiver's lien. For purposes of this bill, a receiver's lien is a first priority lien in favor of the receiver against the subject parcel that, with regard to the subject parcel, upon approval of the court, secures:<br /> <br /> (1) Any and all direct and indirect expenses and costs incurred by the receiver, including reasonable attorney's fees and costs;<br /> (2) Any and all outstanding municipal fines, penalties, expenditures, and assessments;<br /> (3) Any and all amounts attributable to state and local taxes and assessments, including any and all outstanding amounts secured by delinquent property tax liens; and<br /> (4) A fee, payable to the receiver, equal to 10 percent of the total of the amounts provided under (1), but in no event less than $2,500.<br /> <br /> This bill adds a requirement that a tax deed or order of confirmation of sale must include as an exhibit a detailed description of the steps taken by the delinquent tax attorney to provide notice to all owners and interested parties, and must include a finding by the court that such steps represented a diligent effort to give actual notice of the proceedings.<br /> <br /> Present law requires that a complaint for enforcement of a property tax lien be in substance and form as other complaints for the enforcement of liens. The complaint may be filed against and contain the names of all the delinquent taxpayers in the county. This bill specifies that the complaint must be filed against the property as an action against the property and may also be filed personally against the delinquent taxpayers for enforcement of their personal tax debts.<br /> <br />