Whenever the state or any of its political subdivisions shall own property upon which there are any unpaid taxes or special assessments and any interest, penalties or costs relating to such taxes or special assessments, and the value of such property is less than the total of such taxes, special assessments, interest, penalties and costs, such property may be sold by the owner and title given as provided in sections 77-2801 to 77-2809.

The governing body of the political subdivision owning property described in section 77-2801 and desiring to sell the same shall certify by official action to the county treasurer of the county in which the property is located, the legal description of the property and the street address of such property if within a city or village, that the value of the property is less than the total of all taxes, special assessments and interest, penalties, and cost levied against such property, and that the owner desires that such property be sold.

The county treasurer shall set a date of sale which shall be within two months of the date of the certification made pursuant to section 77-2802 and proceed, as provided in sections 77-2801 to 77-2809, to offer and sell such property to the highest bidder.

The county treasurer shall, prior to the sale, cause an advertisement to be printed in a legal newspaper published in the English language in such county or, if none is published in the county, in such a legal newspaper of general circulation in the county at least once a week for three consecutive weeks. Such advertisement shall state the owner of such property and that such property, described by its legal description and if within a city or village by its street address in addition to its legal description, will be sold to the highest bidder on the date set for sale and that a title clear of all liens for taxes, or special assessments and interest, penalties, or costs thereon will be conveyed. If upon the date of sale no bid is made, the county treasurer shall continue such sale until a bid shall have been received, except that the owner, at any time after the date for sale, may cause the selling of the property to be discontinued by notifying the county treasurer of such desire.

Prior to advertising for sale, the county treasurer shall notify the state and all political subdivisions which have any interest in taxes or special assessments levied and assessed against such property of the proposed sale and the date of such sale.

The state or any other political subdivision may purchase such property.

The proceeds of such sale shall be first applied toward payment of all taxes or special assessments and all interest, penalties and costs thereon in the same manner as proceeds from tax foreclosure sales. If there are any proceeds remaining, such remainder shall be applied against any other liens held by the owner and if there remain any further proceeds, such proceeds shall be distributed as otherwise provided by law.

If after all proceeds have been distributed and there still remains unpaid any portion of taxes, interest and penalties and costs thereon, the county shall by official action cause all such taxes, interest, and penalties and costs, regardless of whether such are for the benefit of the state or any political subdivision, to be stricken from the records of the county. Such action shall forever release such property from such taxes, interest, penalties, and costs thereon.

If after the proceeds have been distributed and there still remains unpaid any portion of special assessments, interest, penalties, or costs thereon the governing body of each and every political subdivision interested in the unpaid special assessment shall cause such special assessment, and interest, penalties and costs thereon to be stricken from the records. Such action shall forever release such property from such special assessments and interest, penalties and costs thereon.