By Harris H.B. No. 2596
74R7498 SMH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a requirement that a taxing unit that seeks to collect
1-3 delinquent ad valorem taxes elect between filing suit to foreclose
1-4 the lien securing payment of the taxes and filing suit to enforce
1-5 personal liability for the taxes.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 33.41(a), Tax Code, is amended to read as
1-8 follows:
1-9 (a) At any time after its tax on property becomes
1-10 delinquent, a taxing unit may file suit to foreclose the lien
1-11 securing payment of the tax or<,> to enforce personal liability for
1-12 the tax but may not seek both remedies<, or both>. The suit must
1-13 be in a court of competent jurisdiction for the county in which the
1-14 tax was imposed.
1-15 SECTION 2. Section 33.43(b), Tax Code, is amended to read as
1-16 follows:
1-17 (b) If the petition alleges that the person sued owns the
1-18 property on which the taxing unit asserts a lien, the prayer in the
1-19 petition shall be for foreclosure of the lien and payment of all
1-20 taxes, penalties, interest, and costs that are due or will become
1-21 due and that are secured by the lien. If the petition alleges that
1-22 the person sued owned the property on January 1 of the year for
1-23 which the taxes were imposed, the prayer shall be for personal
1-24 judgment for all taxes, penalties, interest, and costs that are due
2-1 or will become due on the property. <If the petition contains the
2-2 appropriate allegations, the prayer may be for both foreclosure of
2-3 a lien on the property and personal judgment.>
2-4 SECTION 3. Section 34.01, Tax Code, is amended by adding
2-5 Subsection (e) to read as follows:
2-6 (e) If property is sold under Subsection (a), the taxpayer's
2-7 liability for the taxes, penalties, interest, and costs due the
2-8 taxing units that are parties to the judgment is extinguished
2-9 regardless of whether the sale proceeds are sufficient to satisfy
2-10 the judgment.
2-11 SECTION 4. Section 34.05, Tax Code, is amended by adding
2-12 Subsection (g) to read as follows:
2-13 (g) If property is sold under this section, the taxpayer's
2-14 liability for the taxes, penalties, interest, and costs due the
2-15 taxing units that are parties to the judgment is extinguished
2-16 regardless of whether the sale proceeds are sufficient to satisfy
2-17 the judgment.
2-18 SECTION 5. The changes in law made by this Act apply only to
2-19 a delinquent tax suit filed on or after the effective date of this
2-20 Act. A delinquent tax suit filed before the effective date of this
2-21 Act is covered by the law in effect when the suit was filed, and
2-22 the former law is continued in effect for that purpose.
2-23 SECTION 6. This Act takes effect on the date on which the
2-24 constitutional amendment proposed by the 74th Legislature, Regular
2-25 Session, 1995, to require a taxing unit that seeks to collect
2-26 delinquent ad valorem taxes to elect between enforcing the lien
2-27 securing payment of the taxes and enforcing personal liability for
3-1 the taxes is approved by the voters. If that amendment is not
3-2 approved by the voters, this Act has no effect.
3-3 SECTION 7. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended.