By: Ellis S.B. No. 1567
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the statute of limitations applicable to real property
1-2 sold for taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 33.54, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 33.54. Limitation on Actions Relating to Property Sold
1-7 for Taxes. (a) Except as provided by Subsection (b) of this
1-8 section, a cause of action relating to the title to property may
1-9 not be maintained against the purchaser of the property at a tax
1-10 sale unless the action commences within the applicable limitations
1-11 period <three years> after the deed executed to the purchaser at
1-12 the tax sale is filed of record. For purposes of this section, the
1-13 applicable limitations period shall be two years if the property
1-14 sold at the tax sale was the residence homestead of the owner or
1-15 was land designated for agricultural use when the suit to collect
1-16 the tax was filed or one year for any other property.
1-17 (b) If a person other than the purchaser at the tax sale or
1-18 his successor in interest pays taxes on the property during the
1-19 applicable limitations period <three years following the date the
1-20 deed is filed> and that person was not served citation in the suit
1-21 to foreclose the tax lien, the applicable <three-year> limitations
1-22 period does not apply to that person.
1-23 (c) When actions are barred by this section, the purchaser
2-1 at the tax sale or his successor in interest shall be held to have
2-2 full title to the property, precluding all other claims.
2-3 (d) Under this section and any other section of the Tax
2-4 Code, a person challenging the validity of a tax sale shall not
2-5 commence an action unless such person deposits into the registry of
2-6 the court an amount equal to all taxes, penalties, interest, and
2-7 costs on the property.
2-8 SECTION 2. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended,
2-13 and that this Act take effect and be in force from and after its
2-14 passage, and it is so enacted.