S.B. No. 1545
AN ACT
1-1 relating to the seizure and sale for delinquent ad valorem taxes of
1-2 abandoned real property in a municipality.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 33, Tax Code, is amended by adding
1-5 Subchapter E to read as follows:
1-6 SUBCHAPTER E. SEIZURE OF REAL PROPERTY
1-7 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. A person's real
1-8 property is subject to seizure by a municipality for the payment of
1-9 delinquent ad valorem taxes, penalties, and interest the person
1-10 owes on the property and the amount secured by a municipal health
1-11 or safety lien on the property if:
1-12 (1) the property:
1-13 (A) is in a municipality;
1-14 (B) is less than one acre; and
1-15 (C) has been abandoned, unused, and vacant for
1-16 at least one year;
1-17 (2) the taxes on the property are delinquent for:
1-18 (A) each of the preceding five years; or
1-19 (B) each of the preceding three years if a lien
1-20 on the property has been created on the property in favor of the
1-21 municipality for the cost of remedying a health or safety hazard on
1-22 the property; and
1-23 (3) the tax collector of the municipality determines
1-24 that seizure of the property under this subchapter for the payment
2-1 of the delinquent taxes, penalties, and interest, and of a
2-2 municipal health and safety lien on the property, would be in the
2-3 best interest of the municipality and the other taxing units after
2-4 determining that the sum of all outstanding tax and municipal
2-5 claims against the property plus the estimated costs of a standard
2-6 judicial foreclosure exceed the anticipated proceeds from a tax
2-7 sale.
2-8 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property
2-9 becomes subject to seizure under Section 33.91, the collector for a
2-10 municipality may apply for a tax warrant to a district court in the
2-11 county in which the property is located.
2-12 (b) The court shall issue the tax warrant if by affidavit
2-13 the collector shows that the property is subject to seizure under
2-14 Section 33.91.
2-15 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct
2-16 the sheriff or a constable in the county and the collector for the
2-17 municipality to seize the property described in the warrant,
2-18 subject to the right of redemption, for the payment of the ad
2-19 valorem taxes, penalties, and interest owing on the property
2-20 included in the application, the amount secured by a municipal
2-21 health or safety lien on the property included in the application,
2-22 and the costs of seizure and sale. The warrant shall direct the
2-23 person whose property is seized to disclose to a person executing
2-24 the warrant the name and address if known of any other person
2-25 having an interest in the property.
2-26 (b) A bond may not be required of a municipality for
2-27 issuance or delivery of a tax warrant, and a fee or court cost may
3-1 not be charged for issuance or delivery of the warrant.
3-2 (c) On issuance of a tax warrant, the collector shall take
3-3 possession of the property pending its sale.
3-4 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of
3-5 property, the collector for the municipality shall make a
3-6 reasonable inquiry to determine the identity and address of any
3-7 person, other than the person against whom the tax warrant is
3-8 issued, having an interest in the property. The collector shall
3-9 deliver as soon as possible a notice stating the time and place of
3-10 the sale and briefly describing the property seized to the person
3-11 against whom the warrant is issued and to any other person the
3-12 collector determines has an interest in the property if the
3-13 collector can ascertain the address of the other person.
3-14 (b) Failure to send or receive a notice required by this
3-15 section does not affect the validity of the sale of the seized
3-16 property or title to the property.
3-17 Sec. 33.95. PURCHASER. A purchaser for value at or
3-18 subsequent to the tax sale may conclusively presume the validity of
3-19 the sale and takes free of any claim of a party with a prior
3-20 interest in the property subject to the provisions of Section
3-21 16.002(b), Civil Practice and Remedies Code, and subject to
3-22 applicable rights of redemption.
3-23 SECTION 2. Section 34.01, Tax Code, is amended by adding
3-24 Subsection (e) to read as follows:
3-25 (e) Notwithstanding Subsection (c), if a sufficient bid is
3-26 not received, the officer making the sale may bid property seized
3-27 under Subchapter E, Chapter 33, off to a person described by
4-1 Section 11.181 for less than the tax warrant amount or the market
4-2 value of the property. Consent to the sale by the taxing units
4-3 entitled to receive proceeds of the sale is not required.
4-4 SECTION 3. Section 16.002, Civil Practice and Remedies Code,
4-5 is amended to read as follows:
4-6 Sec. 16.002. One-Year Limitations Period. (a) A person
4-7 must bring suit for malicious prosecution, libel, slander, or
4-8 breach of promise of marriage not later than one year after the day
4-9 the cause of action accrues.
4-10 (b) A person must bring suit to set aside a sale of property
4-11 seized under Subchapter E, Chapter 33, Tax Code, not later than one
4-12 year after the date the property is sold.
4-13 SECTION 4. Section 342.007, Health and Safety Code, is
4-14 amended by adding Subsection (h) to read as follows:
4-15 (h) The governing body of a municipality may foreclose a
4-16 lien on property under this subchapter in a proceeding relating to
4-17 the property brought under Subchapter E, Chapter 33, Tax Code.
4-18 SECTION 5. Subchapter A, Chapter 214, Local Government Code,
4-19 is amended by adding Section 214.004 to read as follows:
4-20 Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER
4-21 EXPENSES. A Type A general-law municipality or home-rule
4-22 municipality may foreclose a lien on property under this subchapter
4-23 in a proceeding relating to the property brought under Subchapter
4-24 E, Chapter 33, Tax Code.
4-25 SECTION 6. Subchapter B, Chapter 214, Local Government Code,
4-26 is amended by adding Section 214.015 to read as follows:
4-27 Sec. 214.015. SEIZURE AND SALE OF PROPERTY TO RECOVER
5-1 EXPENSES. A home-rule municipality or Type A general-law
5-2 municipality may foreclose a lien on property under this subchapter
5-3 in a proceeding relating to the property brought under Subchapter
5-4 E, Chapter 33, Tax Code.
5-5 SECTION 7. Subchapter C, Chapter 214, Local Government Code,
5-6 is amended by adding Section 214.102 to read as follows:
5-7 Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER
5-8 EXPENSES. A municipality may foreclose a lien on property under
5-9 this subchapter in a proceeding relating to the property brought
5-10 under Subchapter E, Chapter 33, Tax Code.
5-11 SECTION 8. The importance of this legislation and the
5-12 crowded condition of the calendars in both houses create an
5-13 emergency and an imperative public necessity that the
5-14 constitutional rule requiring bills to be read on three several
5-15 days in each house be suspended, and this rule is hereby suspended,
5-16 and that this Act take effect and be in force from and after its
5-17 passage, and it is so enacted.