1-1 By: Craddick (Senate Sponsor - Sibley) H.B. No. 2625
1-2 (In the Senate - Received from the House May 1, 1995;
1-3 May 2, 1995, read first time and referred to Committee on Finance;
1-4 May 17, 1995, reported favorably, as amended, by the following
1-5 vote: Yeas 12, Nays 0; May 17, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Sibley
1-7 Amend H.B. 2625 as follows:
1-8 Delete subsection (h), Section 31.061, Tax Code.
1-9 A BILL TO BE ENTITLED
1-10 AN ACT
1-11 relating to actions for the collection of ad valorem taxes and
1-12 transfers of property in the course of collecting ad valorem taxes.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 31.061, Tax Code, is amended to read as
1-15 follows:
1-16 Sec. 31.061. Payment of Taxes Assessed Against Real Property
1-17 by Conveyance to Taxing Unit of Property. (a) An owner of real
1-18 property may, subject to the approval of the governing body of all
1-19 of the taxing units, by deed convey the property to the taxing unit
1-20 that is owed the largest amount of the taxes, penalties, and
1-21 interest assessed against the property in payment of the taxes,
1-22 including delinquent taxes, penalties, and interest assessed
1-23 against the property by each taxing unit. The taxing unit
1-24 acquiring the property holds title to the property on behalf of
1-25 each taxing unit. The lien of each taxing unit on the property
1-26 conveyed is extinguished at the time of the conveyance. The taxing
1-27 unit acquiring the property may, subject to the approval of the
1-28 governing body of another taxing unit, by deed convey the property
1-29 to that taxing unit. The taxing unit acquiring the property holds
1-30 title to the property on behalf of each taxing unit.
1-31 (b) A taxing unit may sell property acquired under this
1-32 section in any manner authorized by Section 34.05.
1-33 (c) If a taxing unit acquiring property under this section
1-34 sells the property within six months after the date the owner
1-35 conveys the property, the taxing unit shall pay to each taxing unit
1-36 its proportionate share of the sale proceeds according to each
1-37 taxing unit's share of the total amount of the taxes, penalties,
1-38 and interest owed at the time of the acquisition.
1-39 (d) <(c)> A taxing unit that does not sell property acquired
1-40 under this section within six months after the date the owner
1-41 conveys the property shall pay to each taxing unit its
1-42 proportionate share, as determined under Subsection (c) <(b)>, of
1-43 the appraised market value of the property as shown on the most
1-44 recent tax roll, less the value of all encumbrances burdening the
1-45 property. On making the payment provided by this subsection, the
1-46 taxing unit owns the property outright and not on behalf of each
1-47 taxing unit. The period during which a taxing unit may hold title
1-48 to the property on behalf of each taxing unit may be extended
1-49 subject to the approval of the governing body of each taxing unit.
1-50 (e) <(d)> The collector shall credit against the taxes,
1-51 penalties, and interest owed each taxing unit:
1-52 (1) the taxing unit's share, as determined under
1-53 Subsection (c) <(b)>, of the sale price if the property is sold
1-54 within six months after the date the owner conveys the property; or
1-55 (2) the taxing unit's share, as determined under
1-56 Subsection (c) <(b)>, of the appraised market value of the property
1-57 as shown on the most recent tax roll, less the value of all
1-58 encumbrances burdening the property, if the property is not sold
1-59 within six months after the date the owner conveys the property.
1-60 (f) <(e)> The owner remains personally liable to each taxing
1-61 unit to the extent the amount of the taxes, penalties, and interest
1-62 owed each taxing unit exceeds the amount credited under Subsection
1-63 (e) <(d)>. The owner is entitled to a refund from each taxing unit
1-64 to the extent the amount credited under Subsection (e) <(d)>
1-65 exceeds the amount of the taxes, penalties, and interest owed the
1-66 taxing unit.
1-67 (g) <(f)> A conveyance of property to a taxing unit under
1-68 this section is voidable by the taxing unit at any time that the
2-1 taxing unit owns the property and determines that the condition of
2-2 the property on the date the owner conveyed it was or may have been
2-3 in violation of a federal or state law, regulation, rule, or order.
2-4 If the taxing unit voids the conveyance:
2-5 (1) the taxing unit shall execute a quitclaim deed of
2-6 the property to the owner, file the deed in the county records, and
2-7 give notice of the deed and its filing to the owner;
2-8 (2) the collector shall remove the credit against the
2-9 taxes, penalties, and interest owed each taxing unit made under
2-10 this section;
2-11 (3) a taxing unit that does not acquire the property
2-12 shall refund the payment made to it by the taxing unit that
2-13 acquires the property and reinstate the taxes, penalties, and
2-14 interest owed the taxing unit; and
2-15 (4) the lien of each taxing unit is reinstated as of
2-16 the date it originally attached.
2-17 (h) <(g)> This section applies only to property in a county
2-18 having a population of 300,000 <50,000> or less, according to the
2-19 most recent federal decennial census.
2-20 SECTION 2. Section 33.51, Tax Code, is amended to read as
2-21 follows:
2-22 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
2-23 foreclosure of a tax lien and the sale of real property, the
2-24 judgment shall provide for the issuance by the clerk of said court
2-25 of a writ of possession to the purchaser at the sale or to the
2-26 purchaser's <his> assigns no sooner than 20 days following the date
2-27 on which the purchaser's deed from the sheriff or constable is
2-28 filed of record <within 20 days after the period of redemption
2-29 expires>.
2-30 SECTION 3. Section 33.52(a), Tax Code, is amended to read as
2-31 follows:
2-32 (a) If the court orders the foreclosure of a tax lien and
2-33 the sale of real property, the judgment shall, upon motion of the
2-34 taxing unit, order that the taxing unit recover from the proceeds
2-35 of the sale the amount of tax on the property for the current tax
2-36 year prorated to the day of judgment. An election by a taxing unit
2-37 not to include the taxes for a current year in a judgment shall not
2-38 affect the tax lien on the property for the current year taxes or
2-39 the power of the taxing unit to collect the current year taxes
2-40 after they become delinquent.
2-41 SECTION 4. Section 34.05(a), Tax Code, is amended to read as
2-42 follows:
2-43 (a) If property is sold to a taxing unit that is a party to
2-44 the judgment, the taxing unit may sell the property at any time by
2-45 private or public sale<,> subject to any right of redemption that
2-46 may remain with the former owner. In selling the property, the
2-47 taxing unit may but is not required to use the procedures provided
2-48 by Section 272.001, Local Government Code. The redemption period
2-49 on property that is sold to a taxing unit begins on the date on
2-50 which the deed to the taxing unit is filed for record <existing at
2-51 the time of the sale>.
2-52 SECTION 5. (a) This Act takes effect September 1, 1995.
2-53 (b) Section 3 of this Act applies to all actions in which a
2-54 final judgment is entered on or after September 1, 1995.
2-55 (c) Section 2 of this Act applies to property sold at any
2-56 time whether before or after September 1, 1995.
2-57 (d) Section 4 of this Act applies to property sold to a
2-58 taxing unit at any time whether before or after September 1, 1995.
2-59 SECTION 6. The importance of this legislation and the
2-60 crowded condition of the calendars in both houses create an
2-61 emergency and an imperative public necessity that the
2-62 constitutional rule requiring bills to be read on three several
2-63 days in each house be suspended, and this rule is hereby suspended.
2-64 * * * * *