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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 2234
103RD GENERAL ASSEMBL Y
4297H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 140.230, RSMo, and to enact in lieu thereof one new section relating to
surplus proceeds from tax sales.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 140.230, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 140.230, to read as follows:
140.230. 1. When real estate has been sold for taxes or other debt by the sheriff or
2 collector of any county within the state of Missouri, and the same sells for a greater amount
3 than the debt or taxes and all costs in the case it shall be the duty of the sheriff or collector of
4 the county , when such sale has been or may hereafter be made, to make a written statement
5 describing each parcel or tract of land sold by [ him ] such sheriff or collector for a greater
6 amount than the debt or taxes and all costs in the case together with the amount of surplus
7 money in each case. The statement shall be subscribed and sworn to by the sheriff or
8 collector making it before some of ficer competent to administer oaths within this state, and
9 then presented to the county commission of the county where the sale has been or may be
10 made; and on the approval of the statement by the commission, the sheriff or collector making
11 the same shall pay the surplus money into the county treasury , take the receipt in duplicate of
12 the treasurer for the surplus of money and retain one of the duplicate receipts and file the
13 other with the county commission, and thereupon the commission shall char ge the treasurer
14 with the amount.
15 2. (1) The treasurer shall place such moneys in the county treasury to be held for the
16 use and benefit of the person entitled to such moneys or to the credit of the school fund of the
17 county , to be held in trust for the lesser of a term of three years or ninety days following the
18 expiration of the redemption period for the lienholders of record or for the publicly recorded
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
19 owner or owners of the property sold at the time of the delinquent land tax auction or their
20 legal representatives.
21 (2) The surplus shall be first distributed to the former lienholders of record, by
22 priority of the former liens, if any , then to the former owner or owners of the property . Lien
23 priority shall be set as of the date of the tax sale. No surplus funds shall be distributed to any
24 party claiming entitlement to such funds, other than as part of the redemption process, until
25 ninety days have passed after the period of redemption has expired.
26 (3) (a) At the end of three years, if any funds have not been distributed or called for
27 as part of a redemption or collector's deed issuance, then such funds shall [ become a
28 permanent school fund of the county ] be repo rted and transferred to the unclaimed
29 pr operty division of the office of state tr easurer .
30 (b) The county shall notify each former owner of the prop erty of such transfer of
31 moneys and such pr operty owner's right to r eclaim such moneys within thirty days after
32 the county makes such transfer . The county shall include a notice containing
33 substantially the same information with the certificate of sale of the pro perty .
34 3. County commissions shall compel owners, lienholders of record, or agents to make
35 satisfactory proof of their claims before receiving their money; provided, that no county shall
36 pay interest to the claimant of any such fund. Upon recei pt of satisfactory proo f of
37 entitlement, the county commission shall issue payment of such surplus funds to the
38 entitled party within sixty days. Any such claim shall be filed with the county commission
39 within ninety days after the expiration of the redemption period, be made in writing, and
40 include reference to the lien of record upon which the claim is made. The reference shall
41 include the county recorder's recording reference information such as book and page number ,
42 document number , or other reference information if the lien is not referenced either by book
43 or page number or document number . Should more than one party make claim to any surplus
44 funds and those parties are unable to reach an agreement satisfactory to the county
45 commission, the county commission shall petition the circuit court within the county where
46 the county commission sits for interpleader . The county commission shall only be required to
47 name as defendants those parties who have made claim to the funds. Upon judgment
48 sustaining the petition for interpleader and the subsequent tender of the surplus funds to the
49 court registry , the county commission so tendering such funds shall be entitled to seek
50 dischar ge from the case.
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HCS HB 2234 2