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.