1-1 By: Horn (Senate Sponsor - Sibley) H.B. No. 2587
1-2 (In the Senate - Received from the House May 8, 1997;
1-3 May 9, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 15, 1997, reported favorably by
1-5 the following vote: Yeas 11, Nays 0; May 15, 1997, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the collection of delinquent property taxes and the
1-10 foreclosure of tax liens.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 31.061(b), Tax Code, is amended to read
1-13 as follows:
1-14 (b) A [If a] taxing unit acquiring property under this
1-15 section may sell the property. The sale may be conducted in a
1-16 manner provided by Section 34.05. If the taxing unit sells the
1-17 property within six months after the date the owner conveys the
1-18 property, the taxing unit shall pay to each taxing unit its
1-19 proportionate share of the sale proceeds according to each taxing
1-20 unit's share of the total amount of the taxes, penalties, and
1-21 interest owed at the time of the acquisition.
1-22 SECTION 2. Section 33.51, Tax Code, is amended to read as
1-23 follows:
1-24 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
1-25 foreclosure of a tax lien and the sale of real property, the
1-26 judgment shall provide for the issuance by the clerk of the court
1-27 of a writ of possession to the purchaser at the sale or to the
1-28 purchaser's [his] assigns within 20 days after the date on which
1-29 the purchaser's deed from the officer making the sale is filed of
1-30 record [period of redemption expires].
1-31 SECTION 3. Section 33.52, Tax Code, is amended to read as
1-32 follows:
1-33 Sec. 33.52. JUDGMENT FOR CURRENT TAXES. (a) If the court
1-34 orders the foreclosure of a tax lien and the sale of real property,
1-35 the judgment shall, on the motion of the taxing unit, order that
1-36 the taxing unit recover from the proceeds of the sale the amount of
1-37 tax on the property for the current tax year [prorated to the day
1-38 of judgment].
1-39 (b) If the amount of tax for the current tax year has not
1-40 been determined on the date of judgment, the court shall, on the
1-41 motion of the taxing unit, order recovery of the amount of tax
1-42 imposed on the property for the preceding tax year[, prorated to
1-43 the date of judgment].
1-44 (c) If taxes for the current year are not included in the
1-45 judgment, the tax sale does not affect:
1-46 (1) the lien securing the taxes for the current year;
1-47 or
1-48 (2) the personal liability of the owner of the
1-49 property for the taxes for the current year.
1-50 SECTION 4. Subchapter C, Chapter 33, Tax Code, is amended by
1-51 adding Section 33.55 to read as follows:
1-52 Sec. 33.55. EFFECT OF JUDGMENT ON ACCRUAL OF PENALTIES AND
1-53 INTEREST. A judgment for delinquent taxes does not affect the
1-54 accrual after the date of the judgment of penalties and interest
1-55 under this chapter on the taxes included in the judgment.
1-56 SECTION 5. Section 34.05(a), Tax Code, is amended to read as
1-57 follows:
1-58 (a) If property is sold to a taxing unit that is a party to
1-59 the judgment, the taxing unit may sell the property at any time by
1-60 public or private sale. In selling the property, the taxing unit
1-61 may, but is not required to, use the procedures provided by Section
1-62 263.001, Local Government Code, or Section 272.001, Local
1-63 Government Code. The sale is[,] subject to any right of redemption
1-64 of the former owner. The redemption period begins on the date the
2-1 deed to the taxing unit is filed for record [existing at the time
2-2 of the sale].
2-3 SECTION 6. Section 34.21(e), Tax Code, is amended to read as
2-4 follows:
2-5 (e) In this section:
2-6 (1) "Agricultural use" has the meaning assigned by
2-7 Section 23.51.
2-8 (2) "Costs" includes the amount reasonably spent by
2-9 the purchaser for the maintenance, preservation, and safekeeping of
2-10 the property, including the cost of:
2-11 (A) property insurance;
2-12 (B) repairs or improvements required by a local
2-13 ordinance or building code or by a lease of the property in effect
2-14 on the date of the sale;
2-15 (C) discharging a lien imposed by a municipality
2-16 to secure expenses incurred by the municipality in remedying a
2-17 health or safety hazard on the property;
2-18 (D) dues or assessments for maintenance paid to
2-19 a property owners' association under a recorded restrictive
2-20 covenant to which the property is subject; and
2-21 (E) impact or standby fees imposed under the
2-22 Local Government Code or Water Code and paid to a political
2-23 subdivision.
2-24 (3) "Purchaser" includes a taxing unit to which
2-25 property is bid off under Section 34.01(c).
2-26 (4) "Residence [, "residence] homestead" has the
2-27 meaning assigned by Section 11.13.
2-28 SECTION 7. Section 4, Article 1.05, Title 79, Revised
2-29 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
2-30 amended to read as follows:
2-31 Sec. 4. This article does not apply to a judgment:
2-32 (1) in favor of a taxing unit in a delinquent tax suit
2-33 under Subchapter C, Chapter 33, Tax Code; or
2-34 (2) that earns interest that is set by Title 2, Tax
2-35 Code.
2-36 SECTION 8. Sections 31.061(g), 34.05(g), and 34.21(f), Tax
2-37 Code, are repealed.
2-38 SECTION 9. The changes in law made by Sections 4 and 8 of
2-39 this Act apply to the accrual of interest on or after the effective
2-40 date of this Act on a judgment entered before, on, or after the
2-41 effective date of this Act.
2-42 SECTION 10. The importance of this legislation and the
2-43 crowded condition of the calendars in both houses create an
2-44 emergency and an imperative public necessity that the
2-45 constitutional rule requiring bills to be read on three several
2-46 days in each house be suspended, and this rule is hereby suspended,
2-47 and that this Act take effect and be in force from and after its
2-48 passage, and it is so enacted.
2-49 * * * * *