By Staples H.B. No. 2963
76R1656 JSA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the time for bringing an action relating to the title
1-3 of property acquired at a delinquent ad valorem tax sale.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 33.54(a), Tax Code, is amended to read as
1-6 follows:
1-7 (a) Except as provided by Subsection (b), an action relating
1-8 to the title to property may not be maintained against the
1-9 purchaser of the property at a tax sale unless the action is
1-10 commenced[:]
1-11 [(1)] before the first anniversary of the date that
1-12 the deed executed to the purchaser at the tax sale is filed of
1-13 record[; or]
1-14 [(2) before the second anniversary of the date that
1-15 the deed executed to the purchaser is filed of record, if on the
1-16 date that the suit to collect the delinquent tax was filed the
1-17 property was:]
1-18 [(A) the residence homestead of the owner; or]
1-19 [(B) land appraised or eligible to be appraised
1-20 under Subchapter C or D, Chapter 23].
1-21 SECTION 2. Section 34.08, Tax Code, as amended by Chapters
1-22 1136 and 1192, Acts of the 75th Legislature, 1997, is amended to
1-23 read as follows:
1-24 Sec. 34.08. CHALLENGE TO VALIDITY OF TAX SALE. (a) A
2-1 person may not commence an action that challenges the validity of a
2-2 tax sale under this chapter unless the person:
2-3 (1) deposits into the registry of the court an amount
2-4 equal to the amount of the delinquent taxes, penalties, and
2-5 interest specified in the judgment of foreclosure obtained against
2-6 the property plus all costs of the tax sale; or
2-7 (2) files an affidavit of inability to pay under Rule
2-8 145, Texas Rules of Civil Procedure.
2-9 (b) A person may not commence an action challenging the
2-10 validity of a tax sale after the time set forth in Section 33.54(a)
2-11 [33.54(a)(1) or (2), as applicable to the property,] against a
2-12 subsequent purchaser for value who acquired the property in
2-13 reliance on the tax sale. The purchaser may conclusively presume
2-14 that the tax sale was valid and shall have full title to the
2-15 property free and clear of the right, title, and interest of any
2-16 person that arose before the tax sale, subject only to recorded
2-17 restrictive covenants and valid easements of record set forth in
2-18 Section 34.01(d) and subject to applicable rights of redemption.
2-19 (c) If a person is not barred from bringing an action
2-20 challenging the validity of a tax sale under Subsection (b) or any
2-21 other provision of this title or applicable law, the person must
2-22 bring an action no later than one year [two years] after the cause
2-23 of action accrues to recover real property claimed by another who:
2-24 (1) pays applicable taxes on the real property before
2-25 overdue; and
2-26 (2) claims the property under a registered deed
2-27 executed pursuant to Section 34.01.
3-1 (d) Subsection (c) does not apply to a claim based on a
3-2 forged deed.
3-3 SECTION 3. (a) This Act takes effect September 1, 1999.
3-4 (b) The changes in law made by this Act apply only to an
3-5 action that relates to the title to property sold for taxes or
3-6 challenges the validity of a tax sale and that is commenced on or
3-7 after the effective date of this Act. An action commenced before
3-8 the effective date of this Act is covered by the law in effect when
3-9 the property was sold, and the former law is continued in effect
3-10 for that purpose.
3-11 SECTION 4. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended.