By Craddick H.B. No. 2625
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to actions for the collection of ad valorem taxes and
1-3 transfers of property in the course of collecting ad valorem taxes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 31.061, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 31.061. Payment of Taxes Assessed Against Real Property
1-8 by Conveyance to Taxing Unit of Property. (a) An owner of real
1-9 property may, subject to the approval of the governing body of all
1-10 of the taxing units, by deed convey the property to the taxing unit
1-11 that is owed the largest amount of the taxes, penalties, and
1-12 interest assessed against the property in payment of the taxes,
1-13 including delinquent taxes, penalties, and interest assessed
1-14 against the property by each taxing unit. The taxing unit
1-15 acquiring the property holds title to the property on behalf of
1-16 each taxing unit. The lien of each taxing unit on the property
1-17 conveyed is extinguished at the time of the conveyance. The taxing
1-18 unit acquiring the property may, subject to the approval of the
1-19 governing body of another taxing unit, by deed convey the property
1-20 to that taxing unit. The taxing unit acquiring the property holds
1-21 title to the property on behalf of each taxing unit.
1-22 (b) A taxing unit may sell property acquired under this
1-23 section in any manner authorized by Section 34.05.
2-1 (c) If a taxing unit acquiring property under this section
2-2 sells the property within six months after the date the owner
2-3 conveys the property, the taxing unit shall pay to each taxing unit
2-4 its proportionate share of the sale proceeds according to each
2-5 taxing unit's share of the total amount of the taxes, penalties,
2-6 and interest owed at the time of the acquisition.
2-7 (d) <(c)> A taxing unit that does not sell property acquired
2-8 under this section within six months after the date the owner
2-9 conveys the property shall pay to each taxing unit its
2-10 proportionate share, as determined under Subsection (c) <(b)>, of
2-11 the appraised market value of the property as shown on the most
2-12 recent tax roll, less the value of all encumbrances burdening the
2-13 property. On making the payment provided by this subsection, the
2-14 taxing unit owns the property outright and not on behalf of each
2-15 taxing unit. The period during which a taxing unit may hold title
2-16 to the property on behalf of each taxing unit may be extended
2-17 subject to the approval of the governing body of each taxing unit.
2-18 (e) <(d)> The collector shall credit against the taxes,
2-19 penalties, and interest owed each taxing unit:
2-20 (1) the taxing unit's share, as determined under
2-21 Subsection (c) <(b)>, of the sale price if the property is sold
2-22 within six months after the date the owner conveys the property; or
2-23 (2) the taxing unit's share, as determined under
2-24 Subsection (c) <(b)>, of the appraised market value of the property
2-25 as shown on the most recent tax roll, less the value of all
3-1 encumbrances burdening the property, if the property is not sold
3-2 within six months after the date the owner conveys the property.
3-3 (f) <(e)> The owner remains personally liable to each taxing
3-4 unit to the extent the amount of the taxes, penalties, and interest
3-5 owed each taxing unit exceeds the amount credited under Subsection
3-6 (e) <(d)>. The owner is entitled to a refund from each taxing unit
3-7 to the extent the amount credited under Subsection (e) <(d)>
3-8 exceeds the amount of the taxes, penalties, and interest owed the
3-9 taxing unit.
3-10 (g) <(f)> A conveyance of property to a taxing unit under
3-11 this section is voidable by the taxing unit at any time that the
3-12 taxing unit owns the property and determines that the condition of
3-13 the property on the date the owner conveyed it was or may have been
3-14 in violation of a federal or state law, regulation, rule, or order.
3-15 If the taxing unit voids the conveyance:
3-16 (1) the taxing unit shall execute a quitclaim deed of
3-17 the property to the owner, file the deed in the county records, and
3-18 give notice of the deed and its filing to the owner;
3-19 (2) the collector shall remove the credit against the
3-20 taxes, penalties, and interest owed each taxing unit made under
3-21 this section;
3-22 (3) a taxing unit that does not acquire the property
3-23 shall refund the payment made to it by the taxing unit that
3-24 acquires the property and reinstate the taxes, penalties, and
3-25 interest owed the taxing unit; and
4-1 (4) the lien of each taxing unit is reinstated as of
4-2 the date it originally attached.
4-3 (h) <(g)> This section applies only to property in a county
4-4 having a population of 300,000 <50,000> or less, according to the
4-5 most recent federal decennial census.
4-6 SECTION 2. Section 33.51, Tax Code, is amended to read as
4-7 follows:
4-8 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
4-9 foreclosure of a tax lien and the sale of real property, the
4-10 judgment shall provide for the issuance by the clerk of said court
4-11 of a writ of possession to the purchaser at the sale or to the
4-12 purchaser's <his> assigns no sooner than 20 days following the date
4-13 on which the purchaser's deed from the sheriff or constable is
4-14 filed of record <within 20 days after the period of redemption
4-15 expires>.
4-16 SECTION 3. Section 33.52(a), Tax Code, is amended to read as
4-17 follows:
4-18 (a) If the court orders the foreclosure of a tax lien and
4-19 the sale of real property, the judgment shall, upon motion of the
4-20 taxing unit, order that the taxing unit recover from the proceeds
4-21 of the sale the amount of tax on the property for the current tax
4-22 year prorated to the day of judgment. An election by a taxing unit
4-23 not to include the taxes for a current year in a judgment shall not
4-24 affect the tax lien on the property for the current year taxes or
4-25 the power of the taxing unit to collect the current year taxes
5-1 after they become delinquent.
5-2 SECTION 4. Section 34.05(a), Tax Code, is amended to read as
5-3 follows:
5-4 (a) If property is sold to a taxing unit that is a party to
5-5 the judgment, the taxing unit may sell the property at any time by
5-6 private or public sale<,> subject to any right of redemption that
5-7 may remain with the former owner. In selling the property, the
5-8 taxing unit may but is not required to use the procedures provided
5-9 by Section 272.001, Local Government Code. The redemption period
5-10 on property that is sold to a taxing unit begins on the date on
5-11 which the deed to the taxing unit is filed for record <existing at
5-12 the time of the sale>.
5-13 SECTION 5. (a) This Act takes effect September 1, 1995.
5-14 (b) Section 3 of this Act applies to all actions in which a
5-15 final judgment is entered on or after September 1, 1995.
5-16 (c) Section 2 of this Act applies to property sold at any
5-17 time whether before or after September 1, 1995.
5-18 (d) Section 4 of this Act applies to property sold to a
5-19 taxing unit at any time whether before or after September 1, 1995.
5-20 SECTION 6. The importance of this legislation and the
5-21 crowded condition of the calendars in both houses create an
5-22 emergency and an imperative public necessity that the
5-23 constitutional rule requiring bills to be read on three several
5-24 days in each house be suspended, and this rule is hereby suspended.