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.