By Giddings H.B. No. 2656
75R8926 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sale of property following the foreclosure of an ad
1-3 valorem tax lien on the property or the seizure of the property
1-4 pursuant to an ad valorem tax warrant.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 33.50(b), Tax Code, is amended to read as
1-7 follows:
1-8 (b) If the judgment in a suit to collect a delinquent tax is
1-9 for the foreclosure of a tax lien on property, the order of sale
1-10 shall specify that the property may [not] be sold to a taxing unit
1-11 that is a party to the suit or to any other [a] person other than a
1-12 person owning an interest in the property or [to] any party to the
1-13 suit that is not [, other than] a taxing unit[,] for [less than]
1-14 the market value of the property stated in the judgment or the
1-15 aggregate amount of the judgments against the property, whichever
1-16 is less.
1-17 SECTION 2. Section 33.51, Tax Code, is amended to read as
1-18 follows:
1-19 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
1-20 foreclosure of a tax lien and the sale of real property, the
1-21 judgment shall provide for the issuance of a writ of possession to
1-22 the purchaser at the sale or his assigns within 20 days after the
1-23 purchaser's deed is filed of record [period of redemption expires].
1-24 SECTION 3. Section 33.91, Tax Code, is amended to read as
2-1 follows:
2-2 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. (a) After notice
2-3 has been provided to the person, a [A] person's real property is
2-4 subject to seizure by a municipality for the payment of delinquent
2-5 ad valorem taxes, penalties, and interest the person owes on the
2-6 property and the amount secured by a municipal health or safety
2-7 lien on the property if:
2-8 (1) the property:
2-9 (A) is in a municipality;
2-10 (B) is less than one acre; and
2-11 (C) has been [abandoned,] unused[,] and vacant
2-12 for at least one year;
2-13 (2) the taxes on the property are delinquent for:
2-14 (A) each of the preceding five years; or
2-15 (B) each of the preceding three years if a lien
2-16 on the property has been created on the property in favor of the
2-17 municipality for the cost of remedying a health or safety hazard on
2-18 the property; and
2-19 (3) the tax collector of the municipality determines
2-20 that seizure of the property under this subchapter for the payment
2-21 of the delinquent taxes, penalties, and interest, and of a
2-22 municipal health and safety lien on the property, would be in the
2-23 best interest of the municipality and the other taxing units after
2-24 determining that the sum of all outstanding tax and municipal
2-25 claims against the property plus the estimated costs of a standard
2-26 judicial foreclosure exceed the anticipated proceeds from a tax
2-27 sale.
3-1 (b) The person is considered to have been provided the
3-2 notice required by Subsection (a) if by affidavit or otherwise the
3-3 collector shows that the assessor for the municipality mailed the
3-4 person each bill for municipal taxes required to be sent the person
3-5 by Section 31.01:
3-6 (1) in each of the five preceding years, if the taxes
3-7 on the property are delinquent for each of those years; or
3-8 (2) in each of the three preceding years, if:
3-9 (A) the taxes on the property are delinquent for
3-10 each of those years; and
3-11 (B) a lien on the property has been created on
3-12 the property in favor of the municipality for the cost of remedying
3-13 a health or safety hazard on the property.
3-14 SECTION 4. Section 33.92, Tax Code, is amended by adding
3-15 Subsection (c) to read as follows:
3-16 (c) The court issuing the tax warrant shall include a
3-17 statement as to the appraised value of the property according to
3-18 the most recent appraisal roll approved by the appraisal review
3-19 board. That value is presumed to be the market value of the
3-20 property on the date that the warrant is issued.
3-21 SECTION 5. Section 34.01, Tax Code, is amended by adding
3-22 Subsection (f) to read as follows:
3-23 (f) Property seized under Subchapter E, Chapter 33, may not
3-24 be sold for an amount that is less than the lesser of the market
3-25 value of the property or the total amount of taxes due on the
3-26 property. A taxing unit that takes title to property seized under
3-27 that subchapter takes title to the property for the use and benefit
4-1 of that taxing unit and all other taxing units that established tax
4-2 liens in the suit or that, on the date of the seizure, were owed
4-3 delinquent taxes on the property.
4-4 SECTION 6. Section 34.06(b), Tax Code, is amended to read as
4-5 follows:
4-6 (b) The purchasing taxing unit shall pay all costs and
4-7 expenses of court and sale and, after deducting an amount equal to
4-8 the amount the taxing unit has reasonably spent for the maintenance
4-9 and preservation of the property, shall distribute the remainder of
4-10 the proceeds as provided by Section 34.02 of this code for
4-11 distribution of proceeds after payment of costs.
4-12 SECTION 7. Sections 34.21(a) and (b), Tax Code, are amended
4-13 to read as follows:
4-14 (a) The owner of real property sold at a tax sale that was
4-15 the residence homestead of the owner or that was land designated
4-16 for agricultural use when judgment in the suit to collect the tax
4-17 was rendered [filed] may redeem the property within two years after
4-18 the date on which the purchaser's deed is filed for record by
4-19 paying the purchaser the amount the purchaser bid for the property,
4-20 the amount of the deed recording fee, and the amount paid by the
4-21 purchaser as taxes, penalties, interest, and costs on the property,
4-22 plus 25 percent of the aggregate total if the property is redeemed
4-23 during the first year of the redemption period or 50 percent of the
4-24 aggregate total if the property is redeemed during the second year
4-25 of the redemption period.
4-26 (b) The owner of real property sold at a tax sale other than
4-27 property covered by Subsection (a) may redeem the property within
5-1 six months after the date on which the purchaser's deed is filed
5-2 for record by paying the purchaser an [the] amount equal to the
5-3 greater of the seizure or judgment amount and costs or the amount
5-4 the purchaser bid for the property, plus an [the] amount equal to
5-5 the sum of the deed recording fee, and an amount equal to [the
5-6 amount paid by the purchaser as taxes, penalties, interest, and
5-7 costs on the property, plus] 25 percent of the aggregate total. A
5-8 purchaser who is paid a redemption amount that exceeds 125 percent
5-9 of the amount the purchaser paid for the property shall deliver an
5-10 equal portion of the excess amount to each taxing unit that was a
5-11 party to the judgment or tax warrant.
5-12 SECTION 8. This Act takes effect September 1, 1997.
5-13 SECTION 9. The importance of this legislation and the
5-14 crowded condition of the calendars in both houses create an
5-15 emergency and an imperative public necessity that the
5-16 constitutional rule requiring bills to be read on three several
5-17 days in each house be suspended, and this rule is hereby suspended.