Clarifying terms of registration for tax abandoned land auctions and sales held by auditor
SB 853 amends two sections of West Virginia law governing the Auditor’s sale of tax-abandoned, nonentered, escheated, and waste/unappropriated lands. The bill primarily clarifies and expands the registration requirements for bidders at public auctions of these properties, requiring advance registration or a notarized affidavit and directing the State Auditor to adopt rules for the process. It also authorizes the Auditor to deregister or refuse to register bidders who have a recent history of nonpayment from prior auctions, delinquent real property taxes, repeated code enforcement violations, unresolved legal proceedings tied to code enforcement, or failure to comply with raze or repair orders.
The bill also addresses how unsold parcels may be disposed of after auction. If property remains unsold, was previously sold at auction but not redeemed and deeded, or if the Auditor rejects a sale, the Auditor may sell the land without further auction or advertising in a specified priority order: adjacent landowners, the municipality, the county commission, the West Virginia Land Stewardship Corporation’s land bank program, or any willing purchaser. The bill preserves the existing special preference for qualifying nonprofit housing or public-facility corporations that bid within five percent of the highest nonqualifying bid, and it clarifies that bidders that are domestic or foreign business entities must show proof of authorization to do business in West Virginia.
The bill’s impact is to tighten the rules for participation in tax-abandoned land sales and to give the Auditor more discretion to screen out bidders with a record of tax delinquency, code enforcement problems, or noncompliance with local orders. It also reinforces the state’s ability to move unsold properties into productive use by allowing direct sales to nearby owners, local governments, or land bank entities, while preserving title-examination procedures and cost reimbursement options. In practical terms, the measure affects prospective bidders, local governments, the Auditor’s office, nonprofit housing developers, and entities seeking to acquire distressed property.
General sentiment appears supportive and administrative in nature, with the bill framed as a clarification rather than a major policy shift. The stated purpose is to clarify registration terms for tax-abandoned land auctions and sales held by the Auditor, suggesting an effort to improve enforcement and reduce abuse of the auction process. No committee debate or recorded votes were provided, so there is no documented opposition in the supplied materials.
Potential points of contention, based on the text alone, are the expanded grounds for excluding bidders and the Auditor’s increased discretion to refuse registration or sale. Those provisions could draw concern from property investors or other purchasers who may view the criteria as broad or difficult to administer, while supporters are likely to favor them as tools to discourage repeat noncompliance and speculative acquisition of distressed property. The nonprofit preference and the direct-sale priority structure may also be scrutinized by competing bidders, adjacent landowners, and local stakeholders interested in how abandoned parcels are redistributed.
SB 853 amends West Virginia Code §11A-3-45 and §11A-3-48 to change the rules for bidding on and disposing of tax-abandoned lands sold by the State Auditor. It adds registration, affidavit, and business-authorization requirements for bidders; authorizes the Auditor to deny or revoke eligibility based on prior auction nonpayment, tax delinquency, code enforcement history, unresolved enforcement litigation, or failure to comply with raze/repair orders; and clarifies the order of priority for direct sale of unsold parcels. The bill primarily affects the Auditor’s office, prospective bidders, nonprofit housing corporations, local governments, land banks, and owners or purchasers of distressed real property.
The bill appears generally favorable and procedural in tone, with its stated purpose focused on clarifying registration terms and improving the administration of tax-abandoned land auctions. The text suggests support for stronger screening of bidders and more efficient disposition of unsold properties, but no committee transcripts or votes were provided to show recorded debate or formal opposition. Overall, the measure reads as a cleanup and enforcement bill rather than a controversial policy overhaul.
The main points of contention are likely the expanded disqualification criteria and the Auditor’s discretion to refuse registration or sale. Property investors and other bidders may object to the breadth of the exclusions, especially those tied to code enforcement history, delinquent taxes, or pending legal proceedings. By contrast, supporters such as local governments, code enforcement advocates, and land-reuse entities may favor the bill for discouraging repeat violators and moving abandoned property into productive use. The nonprofit preference for housing or public facilities and the direct-sale priority to adjacent owners, municipalities, counties, and the land stewardship corporation could also be contested by other potential purchasers.