By:  Raymomd                                           H.B. No. 737
       73R3090 SMH-D
                                 A BILL TO BE ENTITLED
    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 a
   1-16  taxing unit, by deed convey the property to the taxing unit in
   1-17  payment of the taxes, including delinquent taxes, assessed against
   1-18  the property by the taxing unit.
   1-19        (b)  If taxes on real property are owed to more than one
   1-20  taxing unit and two or more taxing units agree to acquire the
   1-21  property in payment of taxes, the owner may, subject to the
   1-22  approval of each governing body, convey an undivided interest in
   1-23  the property to each of the taxing units in payment of the taxes
   1-24  owed to each of the taxing units.
    2-1        (c)  The owner shall notify each taxing unit that receives
    2-2  property in payment of taxes of each encumbrance, easement, or
    2-3  other interest burdening the property.
    2-4        (d)  A taxing unit may not acquire under this section an
    2-5  interest in property in payment of taxes if the amount of the
    2-6  taxes, penalties, and interest owed the taxing unit is exceeded by
    2-7  the appraised market value of the property as shown on the most
    2-8  recent tax roll, less:
    2-9              (1)  the value of all encumbrances, easements, or other
   2-10  interests burdening the property that are not taken into account in
   2-11  determining the appraised market value of the property, including
   2-12  the amount of the taxes, penalties, and interest owed other taxing
   2-13  units but excluding the amount of the taxes, penalties, and
   2-14  interest owed all taxing units to which the property is to be
   2-15  conveyed;  and
   2-16              (2)  the value of interests in the property conveyed to
   2-17  other taxing units under this section.
   2-18        (e)  On receipt of the deed to property under this section,
   2-19  the collector shall credit against the taxes, penalties, and
   2-20  interest owed the taxing unit the appraised market value of the
   2-21  property as shown on the most recent tax roll, reduced by the
   2-22  amount of the adjustments required by Subsections (d)(1) and (2).
   2-23  The taxpayer remains personally liable to the taxing unit to the
   2-24  extent the taxes, penalties, and interest owed the taxing unit
   2-25  exceed the amount credited under this subsection.
   2-26        (f)  The acquisition of the property by a taxing unit under
   2-27  this section does not affect the rights or liens of a taxing unit
    3-1  that does not acquire the property under this section.
    3-2        SECTION 3.  This Act takes effect September 1, 1993.
    3-3        SECTION 4.  The importance of this legislation and the
    3-4  crowded condition of the calendars in both houses create an
    3-5  emergency and an imperative public necessity that the
    3-6  constitutional rule requiring bills to be read on three several
    3-7  days in each house be suspended, and this rule is hereby suspended.