City tax-sale buyers could face repair plans and deadlines

A county treasurer may require a tax-sale buyer to submit a plan for fixing building-code violations after the redemption period ends. It applies to property in a consolidated city that violates that city's building code or ordinance when listed for tax sale. The rule excludes a primary residence that received the homestead tax deduction for the most recent assessment. The treasurer must designate covered parcels before the sale. The rule may cover no more than 5% of all parcels listed for sale; a redevelopment commission may help select them. The treasurer may offer covered parcels as a separate part of a regularly scheduled sale. The section is set to take effect July 1, 2026. A required plan must describe repairs to be made after the redemption period ends.

The county auditor must put a repair requirement in the ownership deed, and the buyer must fix the violations or the property is subject to forfeiture. It covers selected tax-sale parcels in a consolidated city that remain in violation when the county auditor issues the tax deed. This applies only to a parcel sold under the plan requirement that still violates a city building code or ordinance when the tax deed is issued. The 18-month deadline runs from the date the county auditor issues the tax deed. This section is set to take effect July 1, 2026.

The county executive must send an annual report about the remediation program to the legislative council in electronic form. The report covers the remediation program described in both sections of the bill. The report must follow the electronic format required by state law. The first report is due before January 1, 2027, with another due before each January 1 after that.