1-1 By: Henderson S.B. No. 1545
1-2 (In the Senate - Filed March 13, 1995; March 21, 1995, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 April 26, 1995, reported favorably, as amended, by the following
1-5 vote: Yeas 6, Nays 0; April 26, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Henderson
1-7 Amend S.B. No. 1545 as follows:
1-8 On page 3 after line 13 (committee printing page , line )
1-9 add a new Section 33.95 to read as follows:
1-10 "Sec. 33.95. PURCHASER. A purchaser for value at or
1-11 subsequent to the tax sale may conclusively presume the validity of
1-12 the sale and takes free of any claim of a party with a prior
1-13 interest in the property subject to the provisions of Section
1-14 16.002(b), Civil Practice and Remedies Code, and subject to
1-15 applicable rights of redemption."
1-16 A BILL TO BE ENTITLED
1-17 AN ACT
1-18 relating to the seizure and sale for delinquent ad valorem taxes of
1-19 abandoned real property in a municipality.
1-20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-21 SECTION 1. Chapter 33, Tax Code, is amended by adding
1-22 Subchapter E to read as follows:
1-23 SUBCHAPTER E. SEIZURE OF REAL PROPERTY
1-24 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. A person's real
1-25 property is subject to seizure by a municipality for the payment of
1-26 delinquent ad valorem taxes, penalties, and interest the person
1-27 owes on the property and the amount secured by a municipal health
1-28 or safety lien on the property if:
1-29 (1) the property:
1-30 (A) is in a municipality;
1-31 (B) is less than one acre; and
1-32 (C) has been abandoned, unused, and vacant for
1-33 at least one year;
1-34 (2) the taxes on the property are delinquent for:
1-35 (A) each of the preceding five years; or
1-36 (B) each of the preceding three years if a lien
1-37 on the property has been created on the property in favor of the
1-38 municipality for the cost of remedying a health or safety hazard on
1-39 the property; and
1-40 (3) the tax collector of the municipality determines
1-41 that seizure of the property under this subchapter for the payment
1-42 of the delinquent taxes, penalties, and interest, and of a
1-43 municipal health and safety lien on the property, would be in the
1-44 best interest of the municipality and the other taxing units.
1-45 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property
1-46 becomes subject to seizure under Section 33.91, the collector for a
1-47 municipality may apply for a tax warrant to a district court in the
1-48 county in which the property is located.
1-49 (b) The court shall issue the tax warrant if by affidavit
1-50 the collector shows that the property is subject to seizure under
1-51 Section 33.91.
1-52 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct
1-53 the sheriff or a constable in the county and the collector for the
1-54 municipality to seize the property described in the warrant,
1-55 subject to the right of redemption, for the payment of the ad
1-56 valorem taxes, penalties, and interest owing on the property
1-57 included in the application, the amount secured by a municipal
1-58 health or safety lien on the property included in the application,
1-59 and the costs of seizure and sale. The warrant shall direct the
1-60 person whose property is seized to disclose to a person executing
1-61 the warrant the name and address if known of any other person
1-62 having an interest in the property.
1-63 (b) A bond may not be required of a municipality for
1-64 issuance or delivery of a tax warrant, and a fee or court cost may
1-65 not be charged for issuance or delivery of the warrant.
1-66 (c) On issuance of a tax warrant, the collector shall take
1-67 possession of the property pending its sale.
1-68 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of
2-1 property, the collector for the municipality shall make a
2-2 reasonable inquiry to determine the identity and address of any
2-3 person, other than the person against whom the tax warrant is
2-4 issued, having an interest in the property. The collector shall
2-5 deliver as soon as possible a notice stating the time and place of
2-6 the sale and briefly describing the property seized to the person
2-7 against whom the warrant is issued and to any other person the
2-8 collector determines has an interest in the property if the
2-9 collector can ascertain the address of the other person.
2-10 (b) Failure to send or receive a notice required by this
2-11 section does not affect the validity of the sale of the seized
2-12 property or title to the property.
2-13 SECTION 2. Section 34.01, Tax Code, is amended by adding
2-14 Subsection (e) to read as follows:
2-15 (e) Notwithstanding Subsection (c), if a sufficient bid is
2-16 not received, the officer making the sale may bid property seized
2-17 under Subchapter E, Chapter 33, off to a person described by
2-18 Section 11.181 for less than the tax warrant amount or the market
2-19 value of the property. Consent to the sale by the taxing units
2-20 entitled to receive proceeds of the sale is not required.
2-21 SECTION 3. Section 16.002, Civil Practice and Remedies Code,
2-22 is amended to read as follows:
2-23 Sec. 16.002. One-Year Limitations Period. (a) A person
2-24 must bring suit for malicious prosecution, libel, slander, or
2-25 breach of promise of marriage not later than one year after the day
2-26 the cause of action accrues.
2-27 (b) A person must bring suit to set aside a sale of property
2-28 seized under Subchapter E, Chapter 33, Tax Code, not later than one
2-29 year after the date the property is sold.
2-30 SECTION 4. Section 342.007, Health and Safety Code, is
2-31 amended by adding Subsection (h) to read as follows:
2-32 (h) The governing body of a municipality may foreclose a
2-33 lien on property under this subchapter in a proceeding relating to
2-34 the property brought under Subchapter E, Chapter 33, Tax Code.
2-35 SECTION 5. Subchapter A, Chapter 214, Local Government Code,
2-36 is amended by adding Section 214.004 to read as follows:
2-37 Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER
2-38 EXPENSES. A Type A general-law municipality or home-rule
2-39 municipality may foreclose a lien on property under this subchapter
2-40 in a proceeding relating to the property brought under Subchapter
2-41 E, Chapter 33, Tax Code.
2-42 SECTION 6. Subchapter B, Chapter 214, Local Government Code,
2-43 is amended by adding Section 214.015 to read as follows:
2-44 Sec. 214.015. SEIZURE AND SALE OF PROPERTY TO RECOVER
2-45 EXPENSES. A home-rule municipality or Type A general-law
2-46 municipality may foreclose a lien on property under this subchapter
2-47 in a proceeding relating to the property brought under Subchapter
2-48 E, Chapter 33, Tax Code.
2-49 SECTION 7. Subchapter C, Chapter 214, Local Government Code,
2-50 is amended by adding Section 214.102 to read as follows:
2-51 Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER
2-52 EXPENSES. A municipality may foreclose a lien on property under
2-53 this subchapter in a proceeding relating to the property brought
2-54 under Subchapter E, Chapter 33, Tax Code.
2-55 SECTION 8. The importance of this legislation and the
2-56 crowded condition of the calendars in both houses create an
2-57 emergency and an imperative public necessity that the
2-58 constitutional rule requiring bills to be read on three several
2-59 days in each house be suspended, and this rule is hereby suspended,
2-60 and that this Act take effect and be in force from and after its
2-61 passage, and it is so enacted.
2-62 * * * * *