By Pitts H.B. No. 946 Substitute the following for H.B. No. 946: By Solomons C.S.H.B. No. 946 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the disclosure at the sale of real property of 1-3 information concerning the imposition of ad valorem taxes on the 1-4 property. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, chapter 5, Property Code, is 1-7 amended by adding Section 5.010 to read as follows: 1-8 Sec. 5.010. OWNER'S DISCLOSURE OF SPECIAL USE PROPERTY TAX 1-9 INFORMATION. (a) The owner of a fee simple interest in real 1-10 property which was appraised as agricultural or open-space land, 1-11 timberland, recreational, park, or scenic-use land, or public 1-12 access airport property for the current or preceding five tax years 1-13 and who contracts for the sale of that interest shall give to each 1-14 party who is a purchaser a written notice that is signed by the 1-15 owner and that is substantially in the following form: 1-16 OWNER'S DISCLOSURE OF SPECIAL USE TAX INFORMATION 1-17 1. Property description:____________________________________ 1-18 ___________________________________________________________________ 1-19 (and more particularly described as an exhibit to this disclosure.) 1-20 2. Is the property currently, or for any of the preceding 1-21 five tax years, appraised by any taxing authority so as to receive 1-22 a total or partial exemption from ad valorem taxation for use as 1-23 agricultural or open-space land, timberland, recreational, park, or 1-24 scenic-use land, or public access airport property? 2-1 Yes _______ No _______. If yes, explain. (Attach additional 2-2 sheets if necessary.) ___________________________________________ 2-3 __________________________________________________________________ 2-4 __________________________________________________________________ 2-5 __________________________________________________________________ 2-6 if the answer to question two is YES, then: 2-7 YOU ARE ADVISED THAT AN ADDITIONAL TAX MAY BE IMPOSED 2-8 IF THE PROPERTY ABOVE DESCRIBED NO LONGER QUALIFIES TO 2-9 BE APPRAISED IN THAT MANNER. THE ________ COUNTY 2-10 APPRAISAL DISTRICT CAN PROVIDE YOU FURTHER INFORMATION 2-11 BEFORE YOU EXECUTE A CONTRACT FOR PURCHASE OF THE 2-12 PROPERTY. 2-13 _______________________ _______________________ 2-14 Signature of Owner Signature of Purchaser 2-15 _______________ _______________ 2-16 Date Date 2-17 (b) This section shall not apply to a transfer: 2-18 (1) under a court order; 2-19 (2) by a trustee in bankruptcy; 2-20 (3) to a purchaser at a foreclosure sale conducted 2-21 under a power of sale under a deed of trust or a sale under a 2-22 court-ordered foreclosure; or, a purchaser who has acquired the 2-23 property by a deed-in-lieu of foreclosure; 2-24 (4) by a fiduciary in the course of the administration 2-25 of a decedent's estate, guardianship, conservatorship, or trust; or 2-26 (5) to or from a governmental entity. 2-27 (c) The notice described by Subsection (a) is not required 3-1 to be given to: 3-2 (1) a person who is a co-owner with an owner described 3-3 by Subsection (a) of an undivided interest in the property; or 3-4 (2) the spouse or a person in the lineal line of 3-5 consanguinity of an owner described by Subsection (a). 3-6 (d) The failure of the seller to disclose the special use 3-7 tax status of the property, prior to the execution of the contract 3-8 by purchaser, shall make the seller liable for those additional 3-9 taxes, plus any penalty and interest arising from such appraisal. 3-10 (e) The liability for the additional taxes, penalty and 3-11 interest shall not be merged with the conveyance of title of the 3-12 property except that the parties may agree in writing to waive the 3-13 requirements in subsection (d) under this section only after the 3-14 above notice has been given. 3-15 SECTION 2. This Act takes effect January 1, 1996, and 3-16 applies only to a contract of sale that is executed on or after 3-17 that date. 3-18 SECTION 3. The importance of this legislation and the 3-19 crowded condition of the calendars in both houses create an 3-20 emergency and an imperative public necessity that the 3-21 constitutional rule requiring bills to be read on three several 3-22 days in each house be suspended, and this rule is hereby suspended.