BILL ANALYSIS
C.S.H.B. 2625
By: Craddick
03-30-95
Committee Report (Substituted)
BACKGROUND
Currently, Section 31.061, Tax Code, permits taxpayers in counties
with a population of 50,000 or less, to pay taxes by conveying
property to the taxing unit to which the largest amount of property
taxes are due. This unit may then sell the property and pay the
other taxing units their proportionate share, or hold the property
and pay the other taxing units their proportionate share of the
appraised value of the property, less encumbrances, as shown on the
most recent tax roll. Currently, though, there are no provisions
in this section on the methods of conducting sales of property
acquired in this manner.
PURPOSE
This bill provides additional procedures and methods for taxing
units to sell property that is conveyed to a taxing unit. The bill
also raises the county population limit for allowing people to
convey property to a taxing unit.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 31.061 (Payment of Taxes Assessed Against
Real Property by Conveyance to Taxing Unit of Property),
Tax Code, by adding new language in Subsection (b), and
amending new Subsection (h).
(b) Authorizes taxing units to sell property acquired
under this section in any manner authorized by Section
34.05 (Resale by Taxing Unit), Tax Code.
(h) Expands the application of this Section to taxing
units in counties with a population of 300,000 from
50,000.
SECTION 2. Amends Section 33.51 (Writ of Possession), Tax Code, to
provide for the issuance of a writ of possession to the
purchaser at the sale, or his assigns no sooner than 20
days following the date on which the purchaser's deed
from the sheriff or constable is filed of record.
SECTION 3. Amends Section 33.52 (Judgement For Current Taxes),
Subsection (a), Tax Code, by requiring a motion of the
taxing unit for a court ordered judgement ordering the
taxing unit to recover from the proceeds of the sale the
amount of tax on the property for the current tax year
prorated to the day of judgment.
An election by a taxing unit not to include the taxes
for a current year in a judgment shall not affect the
tax lien on the property for the current year taxes or
the right of the taxing unit to collect the current year
taxes after they become delinquent.
SECTION 4. Amends Section 34.05 (Resale by Taxing Unit), Subsection
(a), Tax Code, providing that taxing units may sell
property acquired through a tax sale by private or
public sale, subject to any right of redemption which
may remain with the former owner. Also specifies the
right of redemption by the former owner begins on the
date which the deed to the taxing unit is filed for
record.
Also allows the use of procedures provided by Section
272.001, Local Government Code, in selling the property.
SECTION 5. (a) Effective Date: September 1, 1995;
(b) Section 3 of this act applies to all actions in
which a final judgement is entered on or after September
1, 1995.
(c) Section 2 of this act applies to property sold at
any time whether before or after September 1, 1995.
(d) Section 4 of this act applies to property sold to
a taxing unit at any time whether before or after
September 1, 1995.
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. 2625 amends Section 33.51, Tax Code, rather than repealing
it, as H.B. 2625 does. The substitute amends the Section to
provide for the issuance of a writ of possession to the purchaser
at the sale, or to the purchaser's assigns no sooner than 20 days
following the date on which the purchaser's deed from the sheriff
or constable is filed of record.
The original bill amends Section 34.01 to provide a method of
taking possession by a forcible entry and detainer action. The
substitute does not contain such a provision.
The original bill also amends Section 33.41 to allow appraisal
districts to file suit in the name of the appraisal district, for
the collection of delinquent taxes on behalf of the taxing units.
C.S.H.B. 2625 has no such provisions.
C.S.H.B. 2625 also adds language in Section 34.05, Tax Code, to
allow the use of procedures established in Section 272.001, Local
Government Code, in selling the property.
SUMMARY OF COMMITTEE ACTION
Public notice was posted in accordance with the rules, and a public
hearing was held on March 21, 1995. Representative Craddick
explained the bill. Without objection, H.B. 2625 was left pending
before the committee.
On March 28, 1995, the committee met in a public hearing and H.B.
2625 was laid out on pending business. Representative Craddick
explained the bill. The committee considered a complete substitute
by Representative Craddick. Without objection, the committee
adopted C.S.H.B. 2625. By a record vote of 8 ayes, 0 nays, 0
present not voting and 3 absent, the committee voted to report H.B.
2625 to the House as substituted with the recommendation that it be
sent to the Local & Consent Calendar, and that it do pass.
Testimony received in favor of the bill:
(3/21/95) Kirk Swinney, representing himself and the Midland
County Appraisal District.
(3/28/95) Harvey M. Allen, representing himself
Testimony received against the bill:
(3/21/95) Carol Autry, representing herself and the Tax
Assessor Collectors Assn.