BILL ANALYSIS H.B. 2625 By: Craddick (Sibley) Finance 5-18-95 Senate Committee Report (Amended) BACKGROUND Current law 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, there are no provisions in the Tax Code on the methods of conducting sales of property acquired in this manner. PURPOSE As proposed, H.B. 2625 provides additional procedures and methods for taxing units to sell property that is conveyed to a taxing unit and 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 grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 31.061, Tax Code, as follows: (b) Authorizes a taxing unit to sell property acquired under this section in any manner authorized by Section 34.05. (c) Created from existing text. (d)-(g) Redesignate existing Subsections (d)-(f). Make conforming changes. SECTION 2. Amends Section 33.51, Tax Code, to require a judgment ordering the foreclosure of a tax lien and the sale of real property to provide for the issuance by the clerk of said court 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, rather than 20 days after the period of redemption expires. SECTION 3. Amends Section 33.52(a), Tax Code, to require the judgment, upon motion of the taxing unit, to order that the taxing unit 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. Prohibits an election by a taxing unit not to include the taxes for a current year in a judgment from affecting the tax lien on the property for the current year taxes or the power of the taxing unit to collect the current year taxes after they become delinquent. SECTION 4. Amends Section 34.05(a), Tax Code, to authorize the taxing unit to sell the property at any time by private or public sale, subject to any right of redemption that may remain with the former owner. Provides that a taxing unit may but is not required to use the procedures provided by Section 272.001, Local Government Code, in selling the property. Provides that the redemption period on property that is sold to a taxing unit begins on the date on which the deed to the taxing unit is filed for record. SECTION 5. (a) Effective date: September 1, 1995. (b) Makes application of Section 3 of this Act prospective. (c) Makes application of Section 2 of this Act retroactive. (d) Makes application of Section 4 of this Act retroactive. SECTION 6. Emergency clause.