Tax Sale Legislation Discussed in Weirton

Photo by Craig Howell

A multi-year plan aimed at preventing certain foreign interests and property speculators from buying up land in West Virginia, while also tackling blight across the state, has taken another step forward with the recent signing of Senate Bill 548 into law.

Now, the architects of these endeavors are touring the state to discuss the potential impacts of their legislation in communities, including those in the Ohio Valley.

State Auditor J.B. McCuskey and state Sen. Ryan Weld, R-Brooke, were in Weirton Monday morning to discuss the approach.

"When people don’t pay their property taxes, the properties go up for auction," explained Weld, standing in front of a dilapidated property on Maryland Avenue.

McCuskey noted when such sales occur, there are often situations where out-of-state property speculators, and even organizations from other countries, buy up a large number of properties. SB 548 prohibits citizens of or entities organized in or controlled by citizens or governments of particular countries from purchasing such land.

"You hear people talk about it, and we were the first state to do it," McCuskey said. "With this bill, West Virginia is leading the nation to protect our farmlands and mineral interests."

McCuskey noted purchases of land by foreign interests in other parts of the country, including the Midwest and Plains states, as an example of the inspiration behind the legislation. Citing statistics from the U.S. Department of Agriculture, his office noted Chinese ownership of farmland in the U.S. went from $81 million in 2010 to $1.8 billion in 2020.

SB 548 would prevent groups from about a dozen countries, including China, Russia, Saudi Arabia and North Korea, from purchasing property in West Virginia through tax auctions.

"With this bill, West Virginia is leading the nation to protect our farmlands and mineral interests," McCuskey stated. "The governments of China, Russia, Saudi Arabia and others have proven themselves to be enemies of American prosperity, and this bill is a proactive step to ensure we have control of our energy and food supply chains."

It is a companion piece to SB 552, enacted in 2022 and also developed by Weld and McCuskey, and SB 772. SB 552 allows county and municipal governments to buy properties not sold during tax sales, while SB 772 provides state funds to cover the costs of razing dilapidated properties.

Weld explained the state initially provided $10 million as part of a pilot project under SB 772, and this year agreed to expand the program with a $20 million allotment.

Another component of SB 548 is the creation of a bidder registry, which will prevent bids from individuals or groups if they have failed to make a payment owed at a prior auction, are delinquent in the payment of property taxes, have a history of noncompliance with building code enforcement or have failed to comply with valid demolition or repair orders.

"The bidder registry created in SB 548 will go a long way to ensure that the habitual offenders that do nothing but create headaches in cities and counties across the state will no longer be able to do so," Weld stated. "It will also make it easier for these properties to be acquired by a party wanting to clean them up."

SB 548 is set to go into effect June 9.