1-1 By: Cain S.B. No. 141 1-2 (In the Senate - Filed December 16, 1996; January 14, 1997, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; February 17, 1997, reported favorably, as amended, by 1-5 the following vote: Yeas 11, Nays 0; February 17, 1997, sent to 1-6 printer.) 1-7 COMMITTEE AMENDMENT NO. 1 By: Cain 1-8 Amend S.B. No. 141 by Cain as follows: 1-9 On page 1, end of line 47, add a new sentence: "The seizure 1-10 and sale may not be set aside or voided because of any error in 1-11 determination." 1-12 On page 2, end of line 2, add a new sentence: "The seizure 1-13 and sale may not be set aside or voided because of any error in 1-14 determination." 1-15 A BILL TO BE ENTITLED 1-16 AN ACT 1-17 relating to the power of a county to seize and sell abandoned real 1-18 property for delinquent ad valorem taxes. 1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-20 SECTION 1. Subchapter E, Chapter 33, Tax Code, is amended to 1-21 read as follows: 1-22 SUBCHAPTER E. SEIZURE OF REAL PROPERTY 1-23 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE BY MUNICIPALITY. A 1-24 person's real property is subject to seizure by a municipality for 1-25 the payment of delinquent ad valorem taxes, penalties, and interest 1-26 the person owes on the property and the amount secured by a 1-27 municipal health or safety lien on the property if: 1-28 (1) the property: 1-29 (A) is in a municipality; 1-30 (B) is less than one acre; and 1-31 (C) has been abandoned, unused, and vacant for 1-32 at least one year; 1-33 (2) the taxes on the property are delinquent for: 1-34 (A) each of the preceding five years; or 1-35 (B) each of the preceding three years if a lien 1-36 on the property has been created on the property in favor of the 1-37 municipality for the cost of remedying a health or safety hazard on 1-38 the property; and 1-39 (3) the tax collector of the municipality determines 1-40 that seizure of the property under this subchapter for the payment 1-41 of the delinquent taxes, penalties, and interest, and of a 1-42 municipal health and safety lien on the property, would be in the 1-43 best interest of the municipality and the other taxing units after 1-44 determining that the sum of all outstanding tax and municipal 1-45 claims against the property plus the estimated costs of a standard 1-46 judicial foreclosure exceed the anticipated proceeds from a tax 1-47 sale. 1-48 Sec. 33.911. PROPERTY SUBJECT TO SEIZURE BY COUNTY. A 1-49 person's real property is subject to seizure by a county for the 1-50 payment of delinquent ad valorem taxes, penalties, and interest the 1-51 person owes on the property if: 1-52 (1) the property: 1-53 (A) is in the county; 1-54 (B) is not in a municipality; and 1-55 (C) has been abandoned, unused, and vacant for 1-56 at least one year; 1-57 (2) the taxes on the property are delinquent for each 1-58 of the preceding five years; and 1-59 (3) the county tax assessor-collector determines that 1-60 seizure of the property under this subchapter for the payment of 1-61 the delinquent taxes, penalties, and interest would be in the best 1-62 interest of the county and the other taxing units after determining 1-63 that the sum of all outstanding tax and county claims against the 2-1 property plus the estimated costs of a standard judicial 2-2 foreclosure exceed the anticipated proceeds from a tax sale. 2-3 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property 2-4 becomes subject to seizure under Section 33.91 or 33.911, the 2-5 collector for a municipality or a county, as appropriate, may apply 2-6 for a tax warrant to a district court in the county in which the 2-7 property is located. 2-8 (b) The court shall issue the tax warrant if by affidavit 2-9 the collector shows that the property is subject to seizure under 2-10 Section 33.91 or 33.911. 2-11 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct 2-12 the sheriff or a constable in the county and the collector for the 2-13 municipality or the county to seize the property described in the 2-14 warrant, subject to the right of redemption, for the payment of the 2-15 ad valorem taxes, penalties, and interest owing on the property 2-16 included in the application, the amount secured by a municipal 2-17 health or safety lien on the property included in the application, 2-18 and the costs of seizure and sale. The warrant shall direct the 2-19 person whose property is seized to disclose to a person executing 2-20 the warrant the name and address if known of any other person 2-21 having an interest in the property. 2-22 (b) A bond may not be required of a municipality or county 2-23 for issuance or delivery of a tax warrant, and a fee or court cost 2-24 may not be charged for issuance or delivery of the warrant. 2-25 (c) On issuance of a tax warrant, the collector shall take 2-26 possession of the property pending its sale. 2-27 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of 2-28 property, the collector for the municipality or county shall make a 2-29 reasonable inquiry to determine the identity and address of any 2-30 person, other than the person against whom the tax warrant is 2-31 issued, having an interest in the property. The collector shall 2-32 deliver as soon as possible a notice stating the time and place of 2-33 the sale and briefly describing the property seized to the person 2-34 against whom the warrant is issued and to any other person the 2-35 collector determines has an interest in the property if the 2-36 collector can ascertain the address of the other person. 2-37 (b) Failure to send or receive a notice required by this 2-38 section does not affect the validity of the sale of the seized 2-39 property or title to the property. 2-40 Sec. 33.95. PURCHASER. A purchaser for value at or 2-41 subsequent to the tax sale may conclusively presume the validity of 2-42 the sale and takes free of any claim of a party with a prior 2-43 interest in the property subject to the provisions of Section 2-44 16.002(b), Civil Practice and Remedies Code, and subject to 2-45 applicable rights of redemption. 2-46 SECTION 2. This Act takes effect September 1, 1997. 2-47 SECTION 3. The importance of this legislation and the 2-48 crowded condition of the calendars in both houses create an 2-49 emergency and an imperative public necessity that the 2-50 constitutional rule requiring bills to be read on three several 2-51 days in each house be suspended, and this rule is hereby suspended. 2-52 * * * * *