Opinion ID: 2320989
Heading Depth: 1
Heading Rank: 5

Heading: Void Certificate

Text: In the Parker case, upon remand, the Circuit Court may be called upon to determine if the tax amounts representing unpaid taxes secured by prior void tax certificates should be included as part of a subsequent tax sale and later tax certificates issued thereon. We shall, for the Circuit Court's guidance, address this question. Quillens argues that the tax amounts representing taxes secured by void tax certificates can not be included because when the tax certificates become void after they are not exercised within two years of the date of issuance, the City loses the right to recover the unpaid taxes secured thereunder. In this respect, there are three components of the tax sale statute: taxes, liens, and tax certificates. Tax is defined as any tax, or charge of any kind due to the State or any of its political subdivisions, or to any other taxing agency, that by law is a lien against the real property on which it is imposed or assessed. Section 14-801(c)(1) of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.). Further, Section 14-804(a) of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.), states that [a]ll unpaid taxes on real property shall be, until paid, liens on the real property in respect to which they are imposed. Therefore, unpaid taxes constitute liens on the property upon which they are assessed until they are paid. [14] With respect to tax certificates, Section 14-833 of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.), declares that if a complaint to foreclose the right of redemption is not initiated within two years of the date of issuance of the tax certificate, [t]he certificate is void and any right, title, and interest of the holder of the certificate of sale, in the property sold shall cease. It is a settled principle that laws enacted for the collection of general taxes must be interpreted with very great liberality; consequently, construction should not be undertaken with an eye to defeating the legislation, but with both eyes focused on giving it force, if reasonably possible. Surratts Associates v. Prince George's County, 286 Md. 555, 566, 408 A.2d 1323, 1329 (1979); Casey Development Corp. v. Montgomery County, 212 Md. 138, 147, 129 A.2d 63, 68 (1957). The plain language of the tax sale statute voids only the tax certificate issued to the holder, not the tax lien for the benefit of the taxing authority. The General Assembly has unambiguously stated that if a tax certificate holder does not initiate a proceeding to foreclosure the right of redemption on a property within two years from the date of issuance of the certificate, the certificate, only, becomes void; the underlying unpaid taxes constituting a lien on the property are unaffected. When the City is required to buy in and hold property at a tax sale pursuant to Section 14-824 of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.), and does not file a complaint to foreclose the right of redemption, the taxes remain unpaid and can be included in subsequent tax sales. Accordingly, we hold that the Circuit Court's orders rejecting Quillens' challenge to the validity of the tax certificates were not appealable final judgments. We also hold that Quillens was required to tender payment for the unpaid real property taxes in order to challenge the tax sales. JUDGMENT OF THE COURT OF SPECIAL APPEALS AFFIRMED. COSTS IN THIS COURT TO BE PAID BY PETITIONERS.