Authorizes tax collector to foreclose on real property on which tax lien has existed for at least 18 months or on which are owed fines exceeding $25,000 due to egregious zoning or building code violations. (SD1)

A BILL FOR AN ACT

SECTION 1. Section 246-56, Hawaii Revised Statutes, is amended to read as follows:

"§246-56 Tax liens; foreclosure without suit[,]; notice. All real property on which a lien for taxes exists may be sold by way of foreclosure without suit by the tax collector[, and in case]. Additionally, if any lien, or any part thereof, has existed [thereon for three years, shall] on the real property for at least eighteen months, or if there are fines in excess of $25,000 owed for egregious zoning or building code violations involving the real property, the real property may be sold by way of foreclosure by the tax collector at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses due or incurred on account of the tax, lien, and sale, the surplus, if any, to be rendered to the person thereto entitled. The sale shall be held at any public place proper for sales on execution, after public notice given at least once a week for at least four successive weeks immediately prior thereto statewide and in the taxation district wherein the property to be sold is situated. If the address of the owner is known or can be ascertained by due diligence, including an abstract of title or title search, the tax collector shall send to each owner notice of the proposed sale by registered mail, with request for return receipt. If the address of the owner is unknown, the tax collector shall send a notice to the owner at the owner's last known address as shown on the records of the department of taxation. The notice shall be deposited in the mail at least forty-five days prior to the date set for the sale. The notice shall also be posted for a like period in at least three conspicuous places within the taxation district, and if the land is improved one of the three postings shall be on the land."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.