1-1 By: Bosse (Senate Sponsor - Wentworth) H.B. No. 1463
1-2 (In the Senate - Received from the House April 11, 1997;
1-3 April 14, 1997, read first time and referred to Committee on
1-4 Jurisprudence; May 13, 1997, reported favorably by the following
1-5 vote: Yeas 7, Nays 0; May 13, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the sale of real property placed in the name of the
1-9 state as a result of a tax foreclosure sale.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 32.112, Natural Resources Code, is
1-12 amended to read as follows:
1-13 Sec. 32.112. SALE OF TAX FORECLOSURE PROPERTY. (a) All
1-14 real property or any interest in real property placed in the name
1-15 of the state as a result of [a tax] foreclosure of a tax lien,
1-16 whether the property was sold, bid off, or otherwise transferred to
1-17 the state, [sale] may be sold or leased by the board in the same
1-18 manner as provided for the sale or lease of land under Chapter 51,
1-19 free of any lien of a taxing unit that was a party to the judgment
1-20 in the delinquent tax suit involving the property for taxes imposed
1-21 on the property, penalties, or interest that are due the taxing
1-22 unit [of this code].
1-23 (b) A sale of property by the board under this section vests
1-24 in the purchaser of the property good and perfect title to the
1-25 interest in the property owned by the person liable for the
1-26 delinquent taxes. The purchaser has the right to the use and
1-27 possession of the property, subject only to the person's right of
1-28 redemption, a recorded restrictive covenant running with the land,
1-29 and a valid easement of record as of the date the property was
1-30 placed in the name of the state, if the covenant or easement was
1-31 recorded before January 1 of the year in which the tax lien
1-32 attached to the property.
1-33 (c) The board may retain from the proceeds of a sale or
1-34 lease conducted under this section the cost of conducting the
1-35 transaction, including advertising, appraisal, and administrative
1-36 costs. The balance of the proceeds shall be deposited in the State
1-37 Treasury to the credit of the Texas capital trust fund. The board
1-38 is not required to pay any portion of the proceeds to a taxing unit
1-39 that was a party to the judgment in the delinquent tax suit
1-40 involving the property in satisfaction of any taxes imposed on the
1-41 property, penalties, or interest that are due the taxing unit.
1-42 SECTION 2. The importance of this legislation and the
1-43 crowded condition of the calendars in both houses create an
1-44 emergency and an imperative public necessity that the
1-45 constitutional rule requiring bills to be read on three several
1-46 days in each house be suspended, and this rule is hereby suspended,
1-47 and that this Act take effect and be in force from and after its
1-48 passage, and it is so enacted.
1-49 * * * * *