SRC-TNM H.B. 2622 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2622
By: Heflin (Brown)
Intergovernmental Relations
5-12-97
Engrossed


DIGEST 

Currently, Section 33.43, Tax Code, governs petitions for foreclosure of
tax liens by a taxing unit. Although penalties, interest, and delinquent
taxes are recoverable, taxing units are not authorized to collect
interest, taxes and penalties in the time period between the judgment in
favor of the taxing unit.  H.B. 2622 would allow a taxing unit to be paid
post-judgment taxes, penalties, and interest upon selling the property. 
  
PURPOSE

As proposed, H.B. 2622 outlines provisions regarding liability for
postjudgment taxes, penalties, and interest in a suit to collect a
delinquent ad valorem tax. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 33.43(a), Tax Code, to provide that a petition
initiating a suit to collect a delinquent property tax is sufficient if it
alleges certain information.  Makes conforming changes. 

SECTION 2. Amends Section 33.52, Tax Code, as follows:

Sec. 33.52. New heading: JUDGMENT FOR CURRENT TAXES AND POSTJUDGMENT
TAXES, PENALTIES, AND INTEREST. Sets forth certain amounts a judgment is
required to order if the court orders the foreclosure of a tax lien and
the sale of real property.  Requires the taxing unit, rather than court,
to recover, rather than order the recovery of, the amount of tax imposed
on the property for the preceding tax year, prorated to the date of the
sale, rather than the judgment, if the amount of tax for a, rather than
the current, tax year has not been determined on the date of the sale,
rather than judgment. 

SECTION 3. Makes application of this Act prospective.
  
SECTION 4. Effective date: September 1, 1997.

SECTION 5. Emergency clause.