H.B. No. 737
1-1 AN ACT
1-2 relating to the payment of ad valorem taxes assessed against real
1-3 property by conveyance to the taxing unit of the property.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 31.06(a), Tax Code, is amended to read as
1-6 follows:
1-7 (a) Except as provided by Section 31.061, taxes <Taxes> are
1-8 payable only in currency of the United States. However, a
1-9 collector may accept a check or money order in payment of taxes,
1-10 and may accept payment by credit card.
1-11 SECTION 2. Chapter 31, Tax Code, is amended by adding
1-12 Section 31.061 to read as follows:
1-13 Sec. 31.061. PAYMENT OF TAXES ASSESSED AGAINST REAL PROPERTY
1-14 BY CONVEYANCE TO TAXING UNIT OF PROPERTY. (a) An owner of real
1-15 property may, subject to the approval of the governing body of all
1-16 of the taxing units, by deed convey the property to the taxing unit
1-17 that is owed the largest amount of the taxes, penalties, and
1-18 interest assessed against the property in payment of the taxes,
1-19 including delinquent taxes, penalties, and interest assessed
1-20 against the property by each taxing unit. The taxing unit
1-21 acquiring the property holds title to the property on behalf of
1-22 each taxing unit. The lien of each taxing unit on the property
1-23 conveyed is extinguished at the time of the conveyance. The taxing
1-24 unit acquiring the property may, subject to the approval of the
2-1 governing body of another taxing unit, by deed convey the property
2-2 to that taxing unit. The taxing unit acquiring the property holds
2-3 title to the property on behalf of each taxing unit.
2-4 (b) If a taxing unit acquiring property under this section
2-5 sells the property within six months after the date the owner
2-6 conveys the property, the taxing unit shall pay to each taxing unit
2-7 its proportionate share of the sale proceeds according to each
2-8 taxing unit's share of the total amount of the taxes, penalties,
2-9 and interest owed at the time of the acquisition.
2-10 (c) A taxing unit that does not sell property acquired under
2-11 this section within six months after the date the owner conveys the
2-12 property shall pay to each taxing unit its proportionate share, as
2-13 determined under Subsection (b), of the appraised market value of
2-14 the property as shown on the most recent tax roll, less the value
2-15 of all encumbrances burdening the property. On making the payment
2-16 provided by this subsection, the taxing unit owns the property
2-17 outright and not on behalf of each taxing unit. The period during
2-18 which a taxing unit may hold title to the property on behalf of
2-19 each taxing unit may be extended subject to the approval of the
2-20 governing body of each taxing unit.
2-21 (d) The collector shall credit against the taxes, penalties,
2-22 and interest owed each taxing unit:
2-23 (1) the taxing unit's share, as determined under
2-24 Subsection (b), of the sale price if the property is sold within
2-25 six months after the date the owner conveys the property; or
2-26 (2) the taxing unit's share, as determined under
2-27 Subsection (b), of the appraised market value of the property as
3-1 shown on the most recent tax roll, less the value of all
3-2 encumbrances burdening the property, if the property is not sold
3-3 within six months after the date the owner conveys the property.
3-4 (e) The owner remains personally liable to each taxing unit
3-5 to the extent the amount of the taxes, penalties, and interest owed
3-6 each taxing unit exceeds the amount credited under Subsection (d).
3-7 The owner is entitled to a refund from each taxing unit to the
3-8 extent the amount credited under Subsection (d) exceeds the amount
3-9 of the taxes, penalties, and interest owed the taxing unit.
3-10 (f) A conveyance of property to a taxing unit under this
3-11 section is voidable by the taxing unit at any time that the taxing
3-12 unit owns the property and determines that the condition of the
3-13 property on the date the owner conveyed it was or may have been in
3-14 violation of a federal or state law, regulation, rule, or order.
3-15 If the taxing unit voids the conveyance:
3-16 (1) the taxing unit shall execute a quitclaim deed of
3-17 the property to the owner, file the deed in the county records, and
3-18 give notice of the deed and its filing to the owner;
3-19 (2) the collector shall remove the credit against the
3-20 taxes, penalties, and interest owed each taxing unit made under
3-21 this section;
3-22 (3) a taxing unit that does not acquire the property
3-23 shall refund the payment made to it by the taxing unit that
3-24 acquires the property and reinstate the taxes, penalties, and
3-25 interest owed the taxing unit; and
3-26 (4) the lien of each taxing unit is reinstated as of
3-27 the date it originally attached.
4-1 (g) This section applies only to property in a county having
4-2 a population of 50,000 or less, according to the most recent
4-3 federal decennial census.
4-4 SECTION 3. This Act takes effect September 1, 1993.
4-5 SECTION 4. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended.