By Horn H.B. No. 2587
75R4821 SMH-F
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(a). 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 33.41, Tax Code, is amended by adding
1-16 Subsection (d) to read as follows:
1-17 (d) A suit brought under Subsection (a) against the personal
1-18 representative or guardian of an estate is not required to be filed
1-19 in the court in which the probate or guardianship proceeding is
1-20 pending. Part 4, Chapter VIII, and Subpart G, Part 4, Chapter
1-21 XIII, Texas Probate Code, do not apply to a suit filed in a court
1-22 other than the court in which the probate or guardianship
1-23 proceeding is pending.
1-24 SECTION 3. Section 33.51, Tax Code, is amended to read as
2-1 follows:
2-2 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
2-3 foreclosure of a tax lien and the sale of real property, the
2-4 judgment shall provide for the issuance by the clerk of the court
2-5 of a writ of possession to the purchaser at the sale or to the
2-6 purchaser's [his] assigns within 20 days after the date on which
2-7 the purchaser's deed from the officer making the sale is filed of
2-8 record [period of redemption expires].
2-9 SECTION 4. Section 33.52, Tax Code, is amended to read as
2-10 follows:
2-11 Sec. 33.52. JUDGMENT FOR CURRENT TAXES. (a) If the court
2-12 orders the foreclosure of a tax lien and the sale of real property,
2-13 the judgment shall, on the motion of the taxing unit, order that
2-14 the taxing unit recover from the proceeds of the sale the amount of
2-15 tax on the property for the current tax year [prorated to the day
2-16 of judgment].
2-17 (b) If the amount of tax for the current tax year has not
2-18 been determined on the date of judgment, the court shall, on the
2-19 motion of the taxing unit, order recovery of the amount of tax
2-20 imposed on the property for the preceding tax year[, prorated to
2-21 the date of judgment].
2-22 SECTION 5. Subchapter C, Chapter 33, Tax Code, is amended by
2-23 adding Section 33.55 to read as follows:
2-24 Sec. 33.55. INTEREST ON DELINQUENT TAXES INCLUDED IN
2-25 JUDGMENT. Interest accrues from the date of judgment on the amount
2-26 of a delinquent tax included in a judgment in a delinquent tax suit
2-27 at the rate provided by Section 33.01(c).
3-1 SECTION 6. Section 34.05(a), Tax Code, is amended to read as
3-2 follows:
3-3 (a) If property is sold to a taxing unit that is a party to
3-4 the judgment, the taxing unit may sell the property at any time by
3-5 public or private sale, including a sale conducted under Section
3-6 263.001, Local Government Code, if the taxing unit is a county, or
3-7 Section 272.001(a), Local Government Code, if the taxing unit is a
3-8 political subdivision of the state, subject to any right of
3-9 redemption existing at the time of the sale.
3-10 SECTION 7. Subchapter A, Chapter 34, Tax Code, is amended by
3-11 adding Section 34.08 to read as follows:
3-12 Sec. 34.08 EFFECT OF SALE ON TAXES FOR CURRENT YEAR. If
3-13 taxes for the current year are not included in the judgment of
3-14 foreclosure, the tax sale does not affect:
3-15 (1) the lien securing the taxes for the current year;
3-16 or
3-17 (2) the personal liability of the owner of the
3-18 property for the taxes for the current year.
3-19 SECTION 8. Section 34.21(e), Tax Code, is amended to read as
3-20 follows:
3-21 (e) In this section:
3-22 (1) "Agricultural use" has the meaning assigned by
3-23 Section 23.51.
3-24 (2) "Costs" includes the amount reasonably spent by
3-25 the purchaser for the maintenance, preservation, and safekeeping of
3-26 the property, including the cost of:
3-27 (A) property insurance;
4-1 (B) repairs or improvements required by a local
4-2 ordinance or building code or by a lease of the property in effect
4-3 on the date of the sale;
4-4 (C) discharging a lien imposed by a municipality
4-5 to secure expenses incurred by the municipality in remedying a
4-6 health or safety hazard on the property;
4-7 (D) dues or assessments for maintenance paid to
4-8 a property owners' association under a recorded restrictive
4-9 covenant to which the property is subject; and
4-10 (E) impact or standby fees imposed under the
4-11 Local Government Code or Water Code and paid to a political
4-12 subdivision;
4-13 (3) "Purchaser" includes a taxing unit to which
4-14 property is bid off under Section 34.01(c).
4-15 (4) "Residence [, "residence] homestead" has the
4-16 meaning assigned by Section 11.13.
4-17 SECTION 9. Section 4, Article 1.05, Title 79, Revised
4-18 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
4-19 amended to read as follows:
4-20 Sec. 4. This article does not apply to a judgment:
4-21 (1) in favor of a taxing unit in a delinquent tax suit
4-22 under Subchapter C, Chapter 33, Tax Code; or
4-23 (2) that earns interest that is set by Title 2, Tax
4-24 Code.
4-25 SECTION 10. Sections 31.061(g), 34.05(g), and 34.21(f), Tax
4-26 Code, are repealed.
4-27 SECTION 11. The changes in law made by Sections 5 and 9 of
5-1 this Act apply to the accrual of interest on or after the effective
5-2 date of this Act on a judgment entered before, on, or after the
5-3 effective date of this Act.
5-4 SECTION 12. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended,
5-9 and that this Act take effect and be in force from and after its
5-10 passage, and it is so enacted.