1-1 By: Raymond (Senate Sponsor - Truan) H.B. No. 737
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 18, 1993, read first time and referred to Committee on Finance;
1-4 May 22, 1993, reported favorably by the following vote: Yeas 9,
1-5 Nays 0; May 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the payment of ad valorem taxes assessed against real
1-24 property by conveyance to the taxing unit of the property.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 31.06(a), Tax Code, is amended to read as
1-27 follows:
1-28 (a) Except as provided by Section 31.061, taxes <Taxes> are
1-29 payable only in currency of the United States. However, a
1-30 collector may accept a check or money order in payment of taxes,
1-31 and may accept payment by credit card.
1-32 SECTION 2. Chapter 31, Tax Code, is amended by adding
1-33 Section 31.061 to read as follows:
1-34 Sec. 31.061. PAYMENT OF TAXES ASSESSED AGAINST REAL PROPERTY
1-35 BY CONVEYANCE TO TAXING UNIT OF PROPERTY. (a) An owner of real
1-36 property may, subject to the approval of the governing body of all
1-37 of the taxing units, by deed convey the property to the taxing unit
1-38 that is owed the largest amount of the taxes, penalties, and
1-39 interest assessed against the property in payment of the taxes,
1-40 including delinquent taxes, penalties, and interest assessed
1-41 against the property by each taxing unit. The taxing unit
1-42 acquiring the property holds title to the property on behalf of
1-43 each taxing unit. The lien of each taxing unit on the property
1-44 conveyed is extinguished at the time of the conveyance. The taxing
1-45 unit acquiring the property may, subject to the approval of the
1-46 governing body of another taxing unit, by deed convey the property
1-47 to that taxing unit. The taxing unit acquiring the property holds
1-48 title to the property on behalf of each taxing unit.
1-49 (b) If a taxing unit acquiring property under this section
1-50 sells the property within six months after the date the owner
1-51 conveys the property, the taxing unit shall pay to each taxing unit
1-52 its proportionate share of the sale proceeds according to each
1-53 taxing unit's share of the total amount of the taxes, penalties,
1-54 and interest owed at the time of the acquisition.
1-55 (c) A taxing unit that does not sell property acquired under
1-56 this section within six months after the date the owner conveys the
1-57 property shall pay to each taxing unit its proportionate share, as
1-58 determined under Subsection (b), of the appraised market value of
1-59 the property as shown on the most recent tax roll, less the value
1-60 of all encumbrances burdening the property. On making the payment
1-61 provided by this subsection, the taxing unit owns the property
1-62 outright and not on behalf of each taxing unit. The period during
1-63 which a taxing unit may hold title to the property on behalf of
1-64 each taxing unit may be extended subject to the approval of the
1-65 governing body of each taxing unit.
1-66 (d) The collector shall credit against the taxes, penalties,
1-67 and interest owed each taxing unit:
1-68 (1) the taxing unit's share, as determined under
2-1 Subsection (b), of the sale price if the property is sold within
2-2 six months after the date the owner conveys the property; or
2-3 (2) the taxing unit's share, as determined under
2-4 Subsection (b), of the appraised market value of the property as
2-5 shown on the most recent tax roll, less the value of all
2-6 encumbrances burdening the property, if the property is not sold
2-7 within six months after the date the owner conveys the property.
2-8 (e) The owner remains personally liable to each taxing unit
2-9 to the extent the amount of the taxes, penalties, and interest owed
2-10 each taxing unit exceeds the amount credited under Subsection (d).
2-11 The owner is entitled to a refund from each taxing unit to the
2-12 extent the amount credited under Subsection (d) exceeds the amount
2-13 of the taxes, penalties, and interest owed the taxing unit.
2-14 (f) A conveyance of property to a taxing unit under this
2-15 section is voidable by the taxing unit at any time that the taxing
2-16 unit owns the property and determines that the condition of the
2-17 property on the date the owner conveyed it was or may have been in
2-18 violation of a federal or state law, regulation, rule, or order.
2-19 If the taxing unit voids the conveyance:
2-20 (1) the taxing unit shall execute a quitclaim deed of
2-21 the property to the owner, file the deed in the county records, and
2-22 give notice of the deed and its filing to the owner;
2-23 (2) the collector shall remove the credit against the
2-24 taxes, penalties, and interest owed each taxing unit made under
2-25 this section;
2-26 (3) a taxing unit that does not acquire the property
2-27 shall refund the payment made to it by the taxing unit that
2-28 acquires the property and reinstate the taxes, penalties, and
2-29 interest owed the taxing unit; and
2-30 (4) the lien of each taxing unit is reinstated as of
2-31 the date it originally attached.
2-32 (g) This section applies only to property in a county having
2-33 a population of 50,000 or less, according to the most recent
2-34 federal decennial census.
2-35 SECTION 3. This Act takes effect September 1, 1993.
2-36 SECTION 4. The importance of this legislation and the
2-37 crowded condition of the calendars in both houses create an
2-38 emergency and an imperative public necessity that the
2-39 constitutional rule requiring bills to be read on three several
2-40 days in each house be suspended, and this rule is hereby suspended.
2-41 * * * * *
2-42 Austin,
2-43 Texas
2-44 May 22, 1993
2-45 Hon. Bob Bullock
2-46 President of the Senate
2-47 Sir:
2-48 We, your Committee on Finance to which was referred H.B. No. 737,
2-49 have had the same under consideration, and I am instructed to
2-50 report it back to the Senate with the recommendation that it do
2-51 pass and be printed.
2-52 Montford,
2-53 Chairman
2-54 * * * * *
2-55 WITNESSES
2-56 No witnesses appeared on H.B. No. 737.