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) After notice has been provided to a person, the [A] person's
1-9 real property is subject to seizure by a municipality for the
1-10 payment of delinquent ad valorem taxes, penalties, and interest the
1-11 person owes on the property and the amount secured by a municipal
1-12 health or safety lien on the property 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.
2-13 (a) After notice has been provided to a person, the person's real
2-14 property is subject to seizure by a county for the payment of
2-15 delinquent ad valorem taxes, penalties, and interest the person
2-16 owes on the property if:
2-17 (1) the property:
2-18 (A) is in the county;
2-19 (B) is not in a municipality; and
2-20 (C) has been abandoned, unused, and vacant for
2-21 at least one year;
2-22 (2) the taxes on the property are delinquent for each
2-23 of the preceding five years; and
2-24 (3) the county tax assessor-collector determines that
2-25 seizure of the property under this subchapter for the payment of
3-1 the delinquent taxes, penalties, and interest would be in the best
3-2 interest of the county and the other taxing units after determining
3-3 that the sum of all outstanding tax and county claims against the
3-4 property plus the estimated costs of a standard judicial
3-5 foreclosure exceed the anticipated proceeds from a tax sale.
3-6 (b) The seizure and sale may not be set aside or voided
3-7 because of any error in determination.
3-8 Sec. 33.912. NOTICE. A person is considered to have been
3-9 provided the notice required by Sections 33.91 and 33.911 if by
3-10 affidavit or otherwise the collector shows that the assessor for
3-11 the municipality or county mailed the person each bill for
3-12 municipal or county taxes required to be sent the person by Section
3-13 31.01:
3-14 (1) in each of the five preceding years, if the taxes
3-15 on the property are delinquent for each of those years; or
3-16 (2) in each of the three preceding years, if:
3-17 (A) the taxes on the property are delinquent for
3-18 each of those years; and
3-19 (B) a lien on the property has been created on
3-20 the property in favor of the municipality for the cost of remedying
3-21 a health or safety hazard on the property.
3-22 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property
3-23 becomes subject to seizure under Section 33.91 or 33.911, the
3-24 collector for a municipality or a county, as appropriate, may apply
3-25 for a tax warrant to a district court in the county in which the
4-1 property is located.
4-2 (b) The court shall issue the tax warrant if by affidavit
4-3 the collector shows that the property is subject to seizure under
4-4 Section 33.91 or 33.911.
4-5 (c) The court issuing the tax warrant shall include a
4-6 statement as to the appraised value of the property according to
4-7 the most recent appraisal roll approved by the appraisal review
4-8 board. That value is presumed to be the market value of the
4-9 property on the date that the warrant is issued.
4-10 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct
4-11 the sheriff or a constable in the county and the collector for the
4-12 municipality or the county to seize the property described in the
4-13 warrant, subject to the right of redemption, for the payment of the
4-14 ad valorem taxes, penalties, and interest owing on the property
4-15 included in the application, the amount secured by a municipal
4-16 health or safety lien on the property included in the application,
4-17 and the costs of seizure and sale. The warrant shall direct the
4-18 person whose property is seized to disclose to a person executing
4-19 the warrant the name and address if known of any other person
4-20 having an interest in the property.
4-21 (b) A bond may not be required of a municipality or county
4-22 for issuance or delivery of a tax warrant, and a fee or court cost
4-23 may not be charged for issuance or delivery of the warrant.
4-24 (c) On issuance of a tax warrant, the collector shall take
4-25 possession of the property pending its sale.
5-1 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of
5-2 property, the collector for the municipality or county shall make a
5-3 reasonable inquiry to determine the identity and address of any
5-4 person, other than the person against whom the tax warrant is
5-5 issued, having an interest in the property. The collector shall
5-6 deliver as soon as possible a notice stating the time and place of
5-7 the sale and briefly describing the property seized to the person
5-8 against whom the warrant is issued and to any other person the
5-9 collector determines has an interest in the property if the
5-10 collector can ascertain the address of the other person.
5-11 (b) Failure to send or receive a notice required by this
5-12 section does not affect the validity of the sale of the seized
5-13 property or title to the property.
5-14 Sec. 33.95. PURCHASER. A purchaser for value at or
5-15 subsequent to the tax sale may conclusively presume the validity of
5-16 the sale and takes free of any claim of a party with a prior
5-17 interest in the property subject to the provisions of Section
5-18 16.002(b), Civil Practice and Remedies Code, and subject to
5-19 applicable rights of redemption.
5-20 SECTION 2. Section 34.01, Tax Code, is amended by adding
5-21 Subsection (f) to read as follows:
5-22 (f) Except as provided in Subsection (e), property seized
5-23 under Subchapter E, Chapter 33, may not be sold for an amount that
5-24 is less than the lesser of the market value of the property or the
5-25 total amount of taxes due on the property. A taxing unit that
6-1 takes title to property seized under that subchapter takes title to
6-2 the property for the use and benefit of that taxing unit and all
6-3 other taxing units that established tax liens in the suit or that,
6-4 on the date of the seizure, were owed delinquent taxes on the
6-5 property.
6-6 SECTION 3. Subsection (b), Section 34.06, Tax Code, is
6-7 amended to read as follows:
6-8 (b) The purchasing taxing unit shall pay all costs and
6-9 expenses of court, [and] sale, and resale and, after deducting an
6-10 amount equal to the amount the taxing unit has reasonably spent for
6-11 the maintenance and preservation of the property, shall distribute
6-12 the remainder of the proceeds as provided by Section 34.02 of this
6-13 code for distribution of proceeds after payment of costs.
6-14 SECTION 4. Subsections (a) and (b), Section 34.21, Tax Code,
6-15 are amended to read as follows:
6-16 (a) The owner of real property sold at a tax sale that was
6-17 the residence homestead of the owner or that was land designated
6-18 for agricultural use when judgment in the suit to collect the tax
6-19 was rendered or when the tax warrant was issued [filed] may redeem
6-20 the property within two years after the date on which the
6-21 purchaser's deed is filed for record by paying the purchaser the
6-22 amount the purchaser bid for the property, the amount of the deed
6-23 recording fee, and the amount paid by the purchaser as taxes,
6-24 penalties, interest, and costs on the property, plus 25 percent of
6-25 the aggregate total if the property is redeemed during the first
7-1 year of the redemption period or 50 percent of the aggregate total
7-2 if the property is redeemed during the second year of the
7-3 redemption period.
7-4 (b) The owner of real property sold at a tax sale other than
7-5 property covered by Subsection (a) may redeem the property within
7-6 six months after the date on which the purchaser's deed is filed
7-7 for record by paying the purchaser an [the] amount equal to the
7-8 greater of the seizure or judgment amount and costs or the amount
7-9 the purchaser bid for the property, plus an [the] amount equal to
7-10 the sum of the deed recording fee[,] and an amount equal to [the
7-11 amount paid by the purchaser as taxes, penalties, interest, and
7-12 costs on the property, plus] 25 percent of the aggregate total. A
7-13 purchaser who is paid a redemption amount that exceeds 125 percent
7-14 of the amount the purchaser paid for the property shall deliver an
7-15 equal portion of the excess amount to each taxing unit that was a
7-16 party to the judgment or tax warrant.
7-17 SECTION 5. Subsection (b), Section 33.50, Tax Code, is
7-18 amended to read as follows:
7-19 (b) If the judgment in a suit to collect a delinquent tax is
7-20 for the foreclosure of a tax lien on property, the order of sale
7-21 shall specify that the property may [not] be sold to a taxing unit
7-22 that is a party to the suit or to any other person, other than a
7-23 person owning an interest in the property or [to] any party to the
7-24 suit that is not[, other than] a taxing unit, for [less than] the
7-25 market value of the property stated in the judgment or the
8-1 aggregate amount of the judgments against the property, whichever
8-2 is less.
8-3 SECTION 6. Section 33.51, Tax Code, is amended to read as
8-4 follows:
8-5 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
8-6 foreclosure of a tax lien and the sale of real property, the
8-7 judgment shall provide for the issuance of a writ of possession to
8-8 the purchaser at the sale or his assigns within 20 days after the
8-9 purchaser's deed is filed of record [period of redemption expires].
8-10 SECTION 7. This Act takes effect September 1, 1997.
8-11 SECTION 8. The importance of this legislation and the
8-12 crowded condition of the calendars in both houses create an
8-13 emergency and an imperative public necessity that the
8-14 constitutional rule requiring bills to be read on three several
8-15 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 141 passed the Senate on
February 25, 1997, by the following vote: Yeas 29, Nays 1; and
that the Senate concurred in House amendment on May 23, 1997, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 141 passed the House, with
amendment, on May 21, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor