LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 1249
          Committee on Intergovernmental Relations                              By: Ellis
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1249 ( Relating 
to the sale of property for delinquent ad valorem taxes.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1249-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
The bill would amend Chapters 33 and 34 of the Tax Code to change 
the time limit on taking action related to a property sold for 
taxes to the date before either the first anniversary that the 
purchaser at the sale had the deed filed of record, or the second 
anniversary of the deed filing if the property was a residence 
homestead or agricultural land at the time of the delinquent 
tax lawsuit.

The bill would allow property to be sold for 
any amount at a public sale.  At a private sale, the property 
could not be sold for less than the market value specified in 
the judgment or the total amount of the judgment against the 
property.  

Current law requires action related to a property 
sold for taxes to be within three years after the deed to the 
purchaser at the tax sale is filed of record.  Taxing units 
must consent to receive proceeds of less than the property's 
market value in the judgment or the total amount of the judgment 
against the property.

The bill would take effect September 
1, 1998 and would only apply to an action commenced or the resale 
of property by a taxing unit on or after that date.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL ,BR