Section 40-10-198 Rights and Remedies of Certificate Holder.
AI-assisted research summary: A tax lien certificate holder gets the same collection rights and remedies as the tax collecting official, but cannot overcharge for release, cannot take possession or make repairs before a clerk’s deed, and is shielded from certain liability. A Class 2 municipality holding the certificate may make repairs or alterations for a public purpose.
(a) Each holder of a tax lien certificate shall be entitled to the same rights and remedies with respect to the collection of the amounts due on the tax lien certificate as are available to the tax collecting official with respect to the collection of delinquent taxes, including, but not limited to, the right to institute garnishment proceedings against the taxpayer for the payment of taxes. (b) The holder of a tax lien certificate shall not be entitled to charge the taxpayer for the release or satisfaction of the tax lien any amount more than what would otherwise have been available to the tax collecting official with respect to the collection of the delinquent tax. (c) The holder of a tax lien certificate shall not have the right to enter upon or otherwise possess any property upon which he or she holds a tax lien until he or she receives a deed from the circuit clerk pursuant to a court action under this article. Prior to receiving a clerk’s deed, the holder of a tax lien certificate shall not make any repairs or alterations to the property or require the property owner to pay mesne profits or rents as part of any redemption amount. The holder of a tax lien certificate shall not be held criminally or civilly liable for any code violation on the property occurring prior to obtaining a clerk’s deed unless the holder of the tax lien certificate has otherwise violated this subsection. (d) A Class 2 municipality that holds a tax lien certificate may enter and make repairs or alterations to any property within the Class 2 municipality for which the municipality holds a tax lien certificate if the governing body determines that the repairs or alterations serve a public purpose. The cost of the repairs or alterations shall not be included in the price of redemption. If a demand for public auction is made and granted under Section 40-10-197, the reasonable cost of the repairs or alterations shall be determined by the court as part of the costs actually incurred by the holder of the tax lien certificates for the purpose of setting the minimum bid and the distribution of the proceeds.