By: Cain S.B. No. 141 A BILL TO BE ENTITLED AN ACT 1-1 relating to the power of a county to seize and sell abandoned real 1-2 property for delinquent ad valorem taxes. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter E, Chapter 33, Tax Code, is amended to 1-5 read as follows: 1-6 SUBCHAPTER E. SEIZURE OF REAL PROPERTY 1-7 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE BY MUNICIPALITY. 1-8 (a) A person's real property is subject to seizure by a 1-9 municipality for the payment of delinquent ad valorem taxes, 1-10 penalties, and interest the person owes on the property and the 1-11 amount secured by a municipal health or safety lien on the property 1-12 if: 1-13 (1) the property: 1-14 (A) is in a municipality; 1-15 (B) is less than one acre; and 1-16 (C) has been abandoned, unused, and vacant for 1-17 at least one year; 1-18 (2) the taxes on the property are delinquent for: 1-19 (A) each of the preceding five years; or 1-20 (B) each of the preceding three years if a lien 1-21 on the property has been created on the property in favor of the 1-22 municipality for the cost of remedying a health or safety hazard on 1-23 the property; and 2-1 (3) the tax collector of the municipality determines 2-2 that seizure of the property under this subchapter for the payment 2-3 of the delinquent taxes, penalties, and interest, and of a 2-4 municipal health and safety lien on the property, would be in the 2-5 best interest of the municipality and the other taxing units after 2-6 determining that the sum of all outstanding tax and municipal 2-7 claims against the property plus the estimated costs of a standard 2-8 judicial foreclosure exceed the anticipated proceeds from a tax 2-9 sale. 2-10 (b) The seizure and sale may not be set aside or voided 2-11 because of any error in determination. 2-12 Sec. 33.911. PROPERTY SUBJECT TO SEIZURE BY COUNTY. (a) A 2-13 person's real property is subject to seizure by a county for the 2-14 payment of delinquent ad valorem taxes, penalties, and interest the 2-15 person owes on the property if: 2-16 (1) the property: 2-17 (A) is in the county; 2-18 (B) is not in a municipality; and 2-19 (C) has been abandoned, unused, and vacant for 2-20 at least one year; 2-21 (2) the taxes on the property are delinquent for each 2-22 of the preceding five years; and 2-23 (3) the county tax assessor-collector determines that 2-24 seizure of the property under this subchapter for the payment of 2-25 the delinquent taxes, penalties, and interest would be in the best 3-1 interest of the county and the other taxing units after determining 3-2 that the sum of all outstanding tax and county claims against the 3-3 property plus the estimated costs of a standard judicial 3-4 foreclosure exceed the anticipated proceeds from a tax sale. 3-5 (b) The seizure and sale may not be set aside or voided 3-6 because of any error in determination. 3-7 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property 3-8 becomes subject to seizure under Section 33.91 or 33.911, the 3-9 collector for a municipality or a county, as appropriate, may apply 3-10 for a tax warrant to a district court in the county in which the 3-11 property is located. 3-12 (b) The court shall issue the tax warrant if by affidavit 3-13 the collector shows that the property is subject to seizure under 3-14 Section 33.91 or 33.911. 3-15 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct 3-16 the sheriff or a constable in the county and the collector for the 3-17 municipality or the county to seize the property described in the 3-18 warrant, subject to the right of redemption, for the payment of the 3-19 ad valorem taxes, penalties, and interest owing on the property 3-20 included in the application, the amount secured by a municipal 3-21 health or safety lien on the property included in the application, 3-22 and the costs of seizure and sale. The warrant shall direct the 3-23 person whose property is seized to disclose to a person executing 3-24 the warrant the name and address if known of any other person 3-25 having an interest in the property. 4-1 (b) A bond may not be required of a municipality or county 4-2 for issuance or delivery of a tax warrant, and a fee or court cost 4-3 may not be charged for issuance or delivery of the warrant. 4-4 (c) On issuance of a tax warrant, the collector shall take 4-5 possession of the property pending its sale. 4-6 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of 4-7 property, the collector for the municipality or county shall make a 4-8 reasonable inquiry to determine the identity and address of any 4-9 person, other than the person against whom the tax warrant is 4-10 issued, having an interest in the property. The collector shall 4-11 deliver as soon as possible a notice stating the time and place of 4-12 the sale and briefly describing the property seized to the person 4-13 against whom the warrant is issued and to any other person the 4-14 collector determines has an interest in the property if the 4-15 collector can ascertain the address of the other person. 4-16 (b) Failure to send or receive a notice required by this 4-17 section does not affect the validity of the sale of the seized 4-18 property or title to the property. 4-19 Sec. 33.95. PURCHASER. A purchaser for value at or 4-20 subsequent to the tax sale may conclusively presume the validity of 4-21 the sale and takes free of any claim of a party with a prior 4-22 interest in the property subject to the provisions of Section 4-23 16.002(b), Civil Practice and Remedies Code, and subject to 4-24 applicable rights of redemption. 4-25 SECTION 2. This Act takes effect September 1, 1997. 5-1 SECTION 3. The importance of this legislation and the 5-2 crowded condition of the calendars in both houses create an 5-3 emergency and an imperative public necessity that the 5-4 constitutional rule requiring bills to be read on three several 5-5 days in each house be suspended, and this rule is hereby suspended.