By Horn H.B. No. 2587
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the collection of delinquent property taxes and the
1-3 foreclosure of tax liens.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 31.061(b), Tax Code, is amended to read
1-6 as follows:
1-7 (b) A [If a] taxing unit acquiring property under this
1-8 section may sell the property. The sale may be conducted in a
1-9 manner provided by Section 34.05. If the taxing unit sells the
1-10 property within six months after the date the owner conveys the
1-11 property, the taxing unit shall pay to each taxing unit its
1-12 proportionate share of the sale proceeds according to each taxing
1-13 unit's share of the total amount of the taxes, penalties, and
1-14 interest owed at the time of the acquisition.
1-15 SECTION 2. Section 33.51, Tax Code, is amended to read as
1-16 follows:
1-17 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
1-18 foreclosure of a tax lien and the sale of real property, the
1-19 judgment shall provide for the issuance by the clerk of the court
1-20 of a writ of possession to the purchaser at the sale or to the
1-21 purchaser's [his] assigns within 20 days after the date on which
1-22 the purchaser's deed from the officer making the sale is filed of
1-23 record [period of redemption expires].
1-24 SECTION 3. Section 33.52, Tax Code, is amended to read as
2-1 follows:
2-2 Sec. 33.52. JUDGMENT FOR CURRENT TAXES. (a) If the court
2-3 orders the foreclosure of a tax lien and the sale of real property,
2-4 the judgment shall, on the motion of the taxing unit, order that
2-5 the taxing unit recover from the proceeds of the sale the amount of
2-6 tax on the property for the current tax year [prorated to the day
2-7 of judgment].
2-8 (b) If the amount of tax for the current tax year has not
2-9 been determined on the date of judgment, the court shall, on the
2-10 motion of the taxing unit, order recovery of the amount of tax
2-11 imposed on the property for the preceding tax year[, prorated to
2-12 the date of judgment].
2-13 (c) If taxes for the current year are not included in the
2-14 judgment, the tax sale does not affect:
2-15 (1) the lien securing the taxes for the current year;
2-16 or
2-17 (2) the personal liability of the owner of the
2-18 property for the taxes for the current year.
2-19 SECTION 4. Subchapter C, Chapter 33, Tax Code, is amended by
2-20 adding Section 33.55 to read as follows:
2-21 Sec. 33.55. EFFECT OF JUDGMENT ON ACCRUAL OF PENALTIES AND
2-22 INTEREST. A judgment for delinquent taxes does not affect the
2-23 accrual after the date of the judgment of penalties and interest
2-24 under this chapter on the taxes included in the judgment.
2-25 SECTION 5. Section 34.05(a), Tax Code, is amended to read as
2-26 follows:
2-27 (a) If property is sold to a taxing unit that is a party to
3-1 the judgment, the taxing unit may sell the property at any time by
3-2 public or private sale. In selling the property, the taxing unit
3-3 may, but is not required to, use the procedures provided by Section
3-4 263.001, Local Government Code, or Section 272.001, Local
3-5 Government Code. The sale is[,] subject to any right of redemption
3-6 of the former owner. The redemption period begins on the date the
3-7 deed to the taxing unit is filed for record [existing at the time
3-8 of the sale].
3-9 SECTION 6. Section 34.21(e), Tax Code, is amended to read as
3-10 follows:
3-11 (e) In this section:
3-12 (1) "Agricultural use" has the meaning assigned by
3-13 Section 23.51.
3-14 (2) "Costs" includes the amount reasonably spent by
3-15 the purchaser for the maintenance, preservation, and safekeeping of
3-16 the property, including the cost of:
3-17 (A) property insurance;
3-18 (B) repairs or improvements required by a local
3-19 ordinance or building code or by a lease of the property in effect
3-20 on the date of the sale;
3-21 (C) discharging a lien imposed by a municipality
3-22 to secure expenses incurred by the municipality in remedying a
3-23 health or safety hazard on the property;
3-24 (D) dues or assessments for maintenance paid to
3-25 a property owners' association under a recorded restrictive
3-26 covenant to which the property is subject; and
3-27 (E) impact or standby fees imposed under the
4-1 Local Government Code or Water Code and paid to a political
4-2 subdivision.
4-3 (3) "Purchaser" includes a taxing unit to which
4-4 property is bid off under Section 34.01(c).
4-5 (4) "Residence [, "residence] homestead" has the
4-6 meaning assigned by Section 11.13.
4-7 SECTION 7. Section 4, Article 1.05, Title 79, Revised
4-8 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
4-9 amended to read as follows:
4-10 Sec. 4. This article does not apply to a judgment:
4-11 (1) in favor of a taxing unit in a delinquent tax suit
4-12 under Subchapter C, Chapter 33, Tax Code; or
4-13 (2) that earns interest that is set by Title 2, Tax
4-14 Code.
4-15 SECTION 8. Sections 31.061(g), 34.05(g), and 34.21(f), Tax
4-16 Code, are repealed.
4-17 SECTION 9. The changes in law made by Sections 4 and 8 of
4-18 this Act apply to the accrual of interest on or after the effective
4-19 date of this Act on a judgment entered before, on, or after the
4-20 effective date of this Act.
4-21 SECTION 10. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended,
4-26 and that this Act take effect and be in force from and after its
4-27 passage, and it is so enacted.