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New Procedures for Real Estate Tax Sales (LB 851)

on Monday, 12 May 2014 in Dirt Alert: David C. Levy, Editor

Governor Heineman approved Legislative Bill 851 on April 9, 2014. LB 851 amends the procedures for tax sales of real estate in sections 19-5217 and 77-1807 of the Nebraska Revised Statutes. The amendments include: a) an increase of three months to the time in which land banks must foreclose or apply for a tax deed; b) rules governing the bidding process of land banks; c) rules county treasurers must follow in conducting a public auction; d) a provision allowing county treasurers to utilize a round-robin format; e) a registration requirement for bidders at tax sale auctions; and f) a provision allowing county treasurers to sell properties that remains unsold after auction.

LB 851 follows up on Senator Heath Mello’s landmark legislation from 2013 that authorized certain Nebraska municipalities to create and utilize municipal land banks. LB 851 becomes effective January 1, 2015. For information regarding LB 851 and a copy of the final slip law visit the Nebraska Legislature’s website.

Brian R. Schumacher

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