By Cain S.B. No. 141
Substitute the following for S.B. No. 141:
By Chisum C.S.S.B. No. 141
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the power of a county to seize and sell abandoned real
1-3 property for delinquent ad valorem taxes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 33, Tax Code, is amended to
1-6 read as follows:
1-7 SUBCHAPTER E. SEIZURE OF REAL PROPERTY
1-8 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE BY MUNICIPALITY.
1-9 (a) After notice has been provided to the person, [A] a person's
1-10 real property is subject to seizure by a municipality for the
1-11 payment of delinquent ad valorem taxes, penalties, and interest the
1-12 person owes on the property and the amount secured by a municipal
1-13 health or safety lien on the property if:
1-14 (1) the property:
1-15 (A) is in a municipality;
1-16 (B) is less than one acre; and
1-17 (C) has been abandoned, unused, and vacant for
1-18 at least one year;
1-19 (2) the taxes on the property are delinquent for:
1-20 (A) each of the preceding five years; or
1-21 (B) each of the preceding three years if a lien
1-22 on the property has been created on the property in favor of the
1-23 municipality for the cost of remedying a health or safety hazard on
1-24 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)
2-13 After notice has been provided to the person, [A] a 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
2-26 the delinquent taxes, penalties, and interest would be in the best
2-27 interest of the county and the other taxing units after determining
3-1 that the sum of all outstanding tax and county claims against the
3-2 property plus the estimated costs of a standard judicial
3-3 foreclosure exceed the anticipated proceeds from a tax sale.
3-4 (b) The seizure and sale may not be set aside or voided
3-5 because of any error in determination.
3-6 Sec. 33.912. The person is considered to have been provided
3-7 the notice required by Sections 33.91 and 33.911 if by affidavit or
3-8 otherwise the collector shows that the assessor for the
3-9 municipality or county mailed the person each bill for municipal or
3-10 county taxes required to be sent the person by Section 31.01:
3-11 (1) in each of the five preceding years, if the taxes
3-12 on the property are delinquent for each of those years; or
3-13 (2) in each of the three preceding years, if:
3-14 (A) the taxes on the property are delinquent for
3-15 each of those years; and
3-16 (B) a lien on the property has been created on
3-17 the property in favor of the municipality for the cost of remedying
3-18 a health or safety hazard on the property.
3-19 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property
3-20 becomes subject to seizure under Section 33.91 or 33.911, the
3-21 collector for a municipality or a county, as appropriate, may apply
3-22 for a tax warrant to a district court in the county in which the
3-23 property is located.
3-24 (b) The court shall issue the tax warrant if by affidavit
3-25 the collector shows that the property is subject to seizure under
3-26 Section 33.91 or 33.911.
3-27 (c) The court issuing the tax warrant shall include a
4-1 statement as to the appraised value of the property according to
4-2 the most recent appraisal roll approved by the appraisal review
4-3 board. That value is presumed to be the market value of the
4-4 property on the date that the warrant is issued.
4-5 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct
4-6 the sheriff or a constable in the county and the collector for the
4-7 municipality or the county to seize the property described in the
4-8 warrant, subject to the right of redemption, for the payment of the
4-9 ad valorem taxes, penalties, and interest owing on the property
4-10 included in the application, the amount secured by a municipal
4-11 health or safety lien on the property included in the application,
4-12 and the costs of seizure and sale. The warrant shall direct the
4-13 person whose property is seized to disclose to a person executing
4-14 the warrant the name and address if known of any other person
4-15 having an interest in the property.
4-16 (b) A bond may not be required of a municipality or county
4-17 for issuance or delivery of a tax warrant, and a fee or court cost
4-18 may not be charged for issuance or delivery of the warrant.
4-19 (c) On issuance of a tax warrant, the collector shall take
4-20 possession of the property pending its sale.
4-21 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of
4-22 property, the collector for the municipality or county shall make a
4-23 reasonable inquiry to determine the identity and address of any
4-24 person, other than the person against whom the tax warrant is
4-25 issued, having an interest in the property. The collector shall
4-26 deliver as soon as possible a notice stating the time and place of
4-27 the sale and briefly describing the property seized to the person
5-1 against whom the warrant is issued and to any other person the
5-2 collector determines has an interest in the property if the
5-3 collector can ascertain the address of the other person.
5-4 (b) Failure to send or receive a notice required by this
5-5 section does not affect the validity of the sale of the seized
5-6 property or title to the property.
5-7 Sec. 33.95. PURCHASER. A purchaser for value at or
5-8 subsequent to the tax sale may conclusively presume the validity of
5-9 the sale and takes free of any claim of a party with a prior
5-10 interest in the property subject to the provisions of Section
5-11 16.002(b), Civil Practice and Remedies Code, and subject to
5-12 applicable rights of redemption.
5-13 SECTION 2. Section 34.01, Tax Code, is amended by adding
5-14 Subsection (f) to read as follows:
5-15 (f) Except as provided in subsection (e), property seized
5-16 under Subchapter E, Chapter 33, may not be sold for an amount that
5-17 is less than the lesser of the market value of the property or the
5-18 total amount of taxes due on the property. A taxing unit that
5-19 takes title to property seized under that subchapter takes title to
5-20 the property for the use and benefit of that taxing unit and all
5-21 other taxing units that established tax liens in the suit or that,
5-22 on the date of the seizure, were owed delinquent taxes on the
5-23 property.
5-24 SECTION 3. Section 34.06(b), Tax Code, is amended to read as
5-25 follows:
5-26 (b) The purchasing taxing unit shall pay all costs and
5-27 expenses of court(,) [and] sale and resale, and after deducting an
6-1 amount equal to the amount the taxing unit has reasonably spent for
6-2 the maintenance and preservation of the property, shall distribute
6-3 the remainder of the proceeds as provided by Section 34.02 of this
6-4 Code for distribution of proceeds after payment of costs.
6-5 SECTION 4. Sections 34.21(a) and (b), Tax Code, are amended
6-6 to read as follows:
6-7 (a) The owner of real property sold at a tax sale that was
6-8 the residence homestead of the owner or that was land designated
6-9 for agricultural use when judgment in the suit to collect the tax
6-10 was rendered [filed] or when the tax warrant was issued may redeem
6-11 the property within two years after the date on which the
6-12 purchaser's deed is filed for record by paying the purchaser the
6-13 amount the purchaser bid for the property, the amount of the deed
6-14 recording fee, and the amount paid by the purchaser as taxes,
6-15 penalties, interest, and costs on the property, plus 25 percent of
6-16 the aggregate total if the property is redeemed during the first
6-17 year of the redemption period or 50 percent of the aggregate total
6-18 if the property is redeemed during the second year of the
6-19 redemption period.
6-20 (b) The owner of real property sold at a tax sale other than
6-21 property covered by Subsection (a) may redeem the property within
6-22 six months after the date on which the purchaser's deed is filed
6-23 for record by paying the purchaser an [the] amount equal to the
6-24 greater of the seizure or judgment amount and costs or the amount
6-25 the purchaser bid for the property, plus an [the] amount equal to
6-26 the sum of the deed recording fee, and an amount equal to [the
6-27 amount paid by the purchaser as taxes, penalties, interest, and
7-1 costs of the property, plus] 25 percent of the aggregate total. A
7-2 purchaser who is paid a redemption amount that exceeds 125 percent
7-3 of the amount the purchaser paid for the property shall deliver an
7-4 equal portion of the excess amount to each taxing unit that was a
7-5 party to the judgment or tax warrant.
7-6 SECTION 5. Section 33.50(b), Tax Code, is amended to read as
7-7 follows:
7-8 (b) If the judgment in a suit to collect a delinquent tax is
7-9 for the foreclosure of a tax lien on property, the order of sale
7-10 shall specify that the property may [not] be sold to a taxing unit
7-11 that is a party to the suit or to any other [a] person, other than
7-12 a person owning an interest in the property or [to] any party to
7-13 the suit that is not[, other than] a taxing unit, for [less than]
7-14 the market value of the property stated in the judgment or the
7-15 aggregate amount of the judgments against the property, whichever
7-16 is less.
7-17 SECTION 6. Section 33.51, Tax Code, is amended to read as
7-18 follows:
7-19 Sec. 33.51. Writ of Possession. If the court orders the
7-20 foreclosure of a tax lien and the sale of real property, the
7-21 judgment shall provide for the issuance of a writ of possession to
7-22 the purchaser at the sale or his assigns within 20 days after the
7-23 purchaser's deed is filed of record [period of redemption expires].
7-24 SECTION 7. This Act takes effect September 1, 1997.
7-25 SECTION 8. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.