BILL ANALYSIS S.B. 1567 By: Ellis (Coleman) May 19, 1995 Committee Report (Unamended) BACKGROUND In the event of foreclosure of real property by a taxing district resulting from nonpayment of ad valorem property taxes, an individual may contest the sale within a certain time period. Section 33.54, Tax Code, provides that a person may challenge a tax sale against the purchaser if the person files within three years after the purchaser's deed is filed. PURPOSE S.B. 1567 would reduce the time period to file an action against a property's title for property sold at a tax sale. It would also require a person challenging the sale to deposit with the court an amount equal to all taxes, penalties, interest, and cost on the property. 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 33.54 (Limitation of Actions Relating to Property Sold for Taxes), Tax Code, to reduce the filing time to challenge a tax sale against the purchaser from three years to two years for a residence homestead or for land qualified for agricultural use and to one year for all other property. Requires a person challenging that a tax sale is not valid, to deposit with the court an amount equal to all taxes, penalties, interest, and costs on the property. SECTION 2. Emergency clause. SUMMARY OF COMMITTEE ACTION On May 19, 1995, the committee convened in a formal meeting and considered S.B. 1567. By a record vote of 7 ayes, 0 nays, 0 present not voting and 4 absent, the committee voted to report S.B. 1567 to the House without amendment with the recommendation that it do pass.