1-1     By:  Heflin (Senate Sponsor - Brown)                  H.B. No. 2622

 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 liability for postjudgment taxes, penalties, and

1-10     interest in a suit to collect a delinquent ad valorem tax.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 33.43(a), Tax Code, is amended to read as

1-13     follows:

1-14           (a)  A petition initiating a suit to collect a delinquent

1-15     property tax is sufficient if it alleges that:

1-16                 (1)  the taxing unit is legally constituted and

1-17     authorized to impose and collect ad valorem taxes on property;

1-18                 (2)  tax in a stated amount was legally imposed on each

1-19     separately described property for each year specified and on each

1-20     person named if known who owned the property on January 1 of the

1-21     year for which the tax was imposed;

1-22                 (3)  the tax was imposed in the county in which the

1-23     suit is filed;

1-24                 (4)  the tax is delinquent;

1-25                 (5)  penalties, interest, and costs authorized by law

1-26     in a stated amount for each separately assessed property are due;

1-27                 (6)  the taxing unit is entitled to recover taxes

1-28     imposed on the property for the current tax year and each

1-29     subsequent tax year until the property is sold under Section 34.01

1-30     or 34.015, as applicable, prorated to the date of the sale, and

1-31     each penalty that is incurred and all interest that accrues on

1-32     delinquent taxes imposed on the property from the date of the

1-33     judgment to the date of the sale under Section 34.01 or 34.015, as

1-34     applicable, if the suit seeks to foreclose a tax lien;

1-35                 (7)  the person sued owned the property on January 1 of

1-36     the year for which the tax was imposed if the suit seeks to enforce

1-37     personal liability;

1-38                 (8) [(7)] the person sued owns the property when the

1-39     suit is filed if the suit seeks to foreclose a tax lien;

1-40                 (9) [(8)] the taxing unit asserts a lien on each

1-41     separately described property to secure the payment of all taxes,

1-42     penalties, interest, and costs due if the suit seeks to foreclose a

1-43     tax lien;

1-44                 (10) [(9)] all things required by law to be done have

1-45     been done properly by the appropriate officials;  and

1-46                 (11) [(10)] the attorney signing the petition is

1-47     legally authorized to prosecute the suit on behalf of the taxing

1-48     unit.

1-49           SECTION 2.  Section 33.52, Tax Code, is amended to read as

1-50     follows:

1-51           Sec. 33.52.  JUDGMENT FOR CURRENT TAXES AND POSTJUDGMENT

1-52     TAXES, PENALTIES, AND INTEREST.  (a)  If the court orders the

1-53     foreclosure of a tax  lien and the sale of real property, the

1-54     judgment shall order that the taxing unit recover from the proceeds

1-55     of the sale the amount of:

1-56                 (1)  tax on the property for the current tax year and

1-57     each subsequent tax year until the property is sold under Section

1-58     34.01 or 34.015, as applicable, prorated to the date of  the sale;

1-59     and

1-60                 (2)  each penalty that is incurred and all interest

1-61     that accrues on delinquent taxes on the property from the date of

1-62     the judgment to the date of the sale under Section 34.01 or 34.015,

1-63     as applicable [day of judgment].

1-64           (b)  If the amount of tax for a [the current] tax year has

 2-1     not been determined on the date of the sale [judgment], the taxing

 2-2     unit [court] shall recover [order recovery of] the amount of tax

 2-3     imposed on the property for the preceding tax year, prorated to the

 2-4     date of the sale [judgment].

 2-5           SECTION 3.  The change in law made by this Act applies only

 2-6     to a delinquent tax suit filed on or after the effective date of

 2-7     this Act.  A delinquent tax suit filed before the effective date of

 2-8     this Act is covered by the law in effect when the suit was filed,

 2-9     and the former law is continued in effect for that purpose.

2-10           SECTION 4.  This Act takes effect September 1, 1997.

2-11           SECTION 5.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended.

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