By Holzheauser H.B. No. 2881
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to penalties and interest, writs, suits, judgment amounts,
1-3 right of redemption and distribution of proceeds in ad valorem tax
1-4 matters.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 33.01(c), Tax Code, is amended to read as
1-7 follows:
1-8 (c) A delinquent tax accrues interest at a rate of one
1-9 percent for each month or portion of a month the tax remains
1-10 unpaid. Interest payable under this section is to compensate the
1-11 taxing unit for revenue lost because of the delinquency. A
1-12 delinquent tax continues to accrue interest under this subsection
1-13 as long as the tax remains unpaid, regardless of whether a judgment
1-14 for the delinquent tax has been rendered.
1-15 SECTION 2. Section 4, Article 1.05, Title 79, Revised
1-16 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
1-17 amended to read as follows:
1-18 Sec. 4. This article does not apply to a judgment:
1-19 (1) in favor of a taxing unit in a suit to collect a
1-20 delinquent tax under Subchapter C, Chapter 33, Tax Code; or
1-21 (2) that earns interest that is set by Title 2, Tax
1-22 Code.
1-23 SECTION 3. Section 33.02(b), Tax Code is amended to read as
2-1 follows:
2-2 (b) Interest and penalty accrues as provided by Section
2-3 33.01 of this code on the unpaid balance during the period of the
2-4 agreement.
2-5 SECTION 4. Section 33.41, Tax Code, is amended to read as
2-6 follows:
2-7 (d) A suit brought under Subsection (a) against the personal
2-8 representative of an estate who is acting under the control and
2-9 supervision of a probate court need not be filed in that probate
2-10 court, but may instead be brought in a court of competent
2-11 jurisdiction of the county in which the tax was imposed. All
2-12 provisions relative to the presentment of a claim against an estate
2-13 as a prerequisite for judgment shall not be so construed as to
2-14 apply to any claim for delinquent taxes owing to a taxing unit.
2-15 SECTION 5. Section 33.51, Tax Code, is amended to read as
2-16 follows:
2-17 If the court orders the foreclosure of a tax lien and the
2-18 sale of real property, the judgment shall provide for the issuance
2-19 by the clerk of said court of a writ of possession to the purchaser
2-20 at the sale or to the purchaser's <his> assigns <within 20 days
2-21 after the period of redemption expires> no sooner than 20 days
2-22 following the date on which the purchaser's deed from the sheriff
2-23 or constable is filed of record.
2-24 SECTION 6. Section 33.52, Tax Code, is amended to read as
2-25 follows:
3-1 (a) If the court orders the foreclosure of a tax lien and
3-2 the sale of real property, the judgment shall, on motion of the
3-3 taxing unit, order that the taxing unit recover from the proceeds
3-4 of the sale the amount of tax on the property for the current tax
3-5 year <prorated to the date of the judgment>.
3-6 (b) If the amount of tax for the current tax year has not
3-7 been determined on the date of judgment, the court shall, on motion
3-8 of the taxing unit, order recovery of the amount of tax imposed on
3-9 the property for the preceding tax year<, prorated to the date of
3-10 judgment>.
3-11 (c) If the judgment does not provide for recovery of taxes
3-12 imposed for the current tax year, or for recovery of estimated
3-13 taxes that cannot then be calculated for the current year, the real
3-14 property is subject to the taxes for the current tax year and to
3-15 the lien that secures those taxes, and any subsequent purchaser
3-16 takes the property subject to those taxes and the tax lien.
3-17 SECTION 7. Section 34.05(a), Tax Code, is amended to read as
3-18 follows:
3-19 (a) If property is sold to a taxing unit that is a party to
3-20 the judgment, the taxing unit may sell the property at any time,
3-21 subject to any right of redemption existing at the time of the
3-22 sale. In selling the property, the taxing unit may but is not
3-23 required to use the procedures provided by Section 272.001, Local
3-24 Government Code.
3-25 SECTION 8. Section 34.21, Tax Code, is amended to read as
4-1 follows:
4-2 (a) The owner of real property sold at a tax sale to a
4-3 purchaser other than a taxing unit and that was the residence
4-4 homestead of the owner or that was land designated for agricultural
4-5 use when the suit to collect the tax was filed may redeem the
4-6 property within two years after the date on which the purchaser's
4-7 deed is filed for record by paying the purchaser the amount the
4-8 purchaser bid for the property, the amount of the deed recording
4-9 fee, and the amount paid by the purchaser as taxes, penalties,
4-10 interest, and costs on the property, plus a redemption premium of
4-11 25 percent of the aggregate total if the property is redeemed
4-12 during the first year of the redemption period or 50 percent of the
4-13 aggregate total if the property is redeemed during the second year
4-14 of the redemption period.
4-15 (b) If property that was the owner's residence homestead or
4-16 was land designated for agricultural use when the suit to collect
4-17 the tax was filed is bid off to a taxing unit under Section
4-18 34.01(c) and has not been resold by the taxing unit, the owner
4-19 having a right of redemption may redeem the property within two
4-20 years after the date on which the deed of the taxing unit is filed
4-21 for record by paying the taxing unit the amount of the judgment
4-22 against the property or the market value of the property as
4-23 specified in that judgment, whichever is less, plus the amount of
4-24 the fee for filing the taxing unit's deed and the amount expended
4-25 by the taxing unit as costs on the property.
5-1 (c) If real property that was the owner's residence
5-2 homestead or was land designated for agricultural use when the suit
5-3 to collect the tax was filed has been resold by the taxing unit
5-4 under Section 34.05, the owner of the property having a right of
5-5 redemption may redeem the property within two years after the date
5-6 on which the taxing unit files for record the deed from the sheriff
5-7 or constable by paying the person who purchased the property from
5-8 the taxing unit the amount the purchaser paid for the property, the
5-9 amount of the fee for filing the purchaser's deed for record, the
5-10 amount paid by the purchaser as taxes, penalties, interest and
5-11 costs on the property, plus a redemption premium of 25 percent of
5-12 the aggregate total if the property is redeemed in the first year
5-13 of the redemption period or 50 percent of the aggregate total if
5-14 the property is redeemed in the second year of the redemption
5-15 period.
5-16 (d) <(b)> The owner of real property sold at a tax sale
5-17 other than property <covered by Subsection (a)> that was the
5-18 residence homestead of the owner or that was land designated for
5-19 agricultural use when the suit to collect the tax was filed may
5-20 redeem the property <within> in the same manner and by paying the
5-21 same amounts as prescribed by Subsection (a), (b) or (c), as
5-22 applicable, except that:
5-23 (1) the owner's right of redemption expires after six
5-24 months <after> following the date on which the purchaser's or
5-25 taxing unit's deed is filed for record <by paying the purchaser the
6-1 amount the purchaser bid for the property, the amount of the deed
6-2 recording fee, and the amount paid by the purchaser as taxes,
6-3 penalties, interest, and costs on the property, plus 25 percent of
6-4 the aggregate total.>, and
6-5 (2) the redemption premium payable by the owner to a
6-6 purchaser other than a taxing unit shall not exceed 25 percent.
6-7 (e) <(c)> If the owner of the real property makes an
6-8 affidavit that the owner <he> has made diligent search in the
6-9 county in which the property is located for the purchaser at the
6-10 tax sale or for the purchaser at resale, and has failed to find
6-11 that purchaser <him>, that the purchaser <at the sale> is not a
6-12 resident of the county in which the property is located, that the
6-13 owner <he> and the purchaser cannot agree on the amount of
6-14 redemption money due, or that the purchaser refuses to give the
6-15 owner <him> a quitclaim deed to the property, the owner may redeem
6-16 the land by paying the required amount as prescribed by this
6-17 section <Subsection (a) or (b), as applicable,> to the
6-18 assessor-collector for the county in which the property is located.
6-19 The assessor-collector receiving the payment shall give the owner a
6-20 signed receipt witnessed by two persons. The receipt, when
6-21 recorded, is notice to all persons that the property described has
6-22 been redeemed. The assessor-collector shall on demand pay the
6-23 money received by the assessor-collector <him> to the purchaser <at
6-24 the tax sale>.
6-25 (f) <(d)> The right of redemption does not grant or reserve
7-1 in the former owner of the real property the right to the use or
7-2 possession of the property, or to receive rents, income, or other
7-3 benefits from the property while the right of redemption exists.
7-4 (g) <(e)> In this section, "residence homestead" has the
7-5 meaning assigned by Section 11.13.
7-6 (h) <(f)> In this section, "agricultural use" has the
7-7 meaning assigned by Section 23.51.
7-8 (i) In this section, "costs" is defined to include all those
7-9 amounts reasonably expended by a purchaser or taxing unit in the
7-10 maintenance, preservation and safekeeping of the property,
7-11 including but not limited to:
7-12 (i) insurance against fire, flood and
7-13 other hazards,
7-14 (ii) repairs and improvements required by
7-15 local ordinance, building code, or by the terms of any existing
7-16 lease of the property, whether written or oral,
7-17 (iii) discharge of mowing, cleaning or
7-18 demolition liens against the property which secure expenses
7-19 incurred by a municipality,
7-20 (iv) dues, assessments for maintenance, or
7-21 liens provided by recorded restrictive covenants affecting the
7-22 property and payable to a property owners' association, and
7-23 (v) standby fees payable to a water
7-24 district, fresh water supply district, or other municipality as
7-25 authorized by law.
8-1 SECTION 9. Section 34.23, Tax Code, is amended to read as
8-2 follows:
8-3 <(a)> If the owner of property sold for taxes to a taxing
8-4 unit redeems the property before the property is resold, the taxing
8-5 unit shall distribute the redemption proceeds in the manner that
8-6 proceeds of the resale of property are distributed.
8-7 <(b) If the owner of property sold for taxes redeems the
8-8 property from the taxing unit after the property has been resold,
8-9 the taxing unit shall pay the purchaser at the resale the amount he
8-10 paid for the property, plus 25 percent of that amount if the
8-11 redemption occurs within one year after the date the property is
8-12 resold or 50 percent of that amount if the redemption occurs more
8-13 than one year after the date the property is resold. The taxing
8-14 unit shall distribute the redemption proceeds remaining after
8-15 payment of the amount due the purchaser at resale to the taxing
8-16 units adjudged to have tax liens against the property in the
8-17 proportion the amount of each unit's lien bears to the total amount
8-18 of all liens established in the foreclosure suit.>
8-19 SECTION 10. This Act takes effect January 1, 1996.
8-20 SECTION 11. EMERGENCY. The importance of this legislation
8-21 and the crowded condition of the calendars in both houses create an
8-22 emergency and an imperative public necessity that the
8-23 constitutional rule requiring bills to be read on three several
8-24 days in each house be suspended, and this rule is hereby suspended.