By Heflin H.B. No. 3549
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and collection of ad valorem taxes
1-3 and certain local standby fees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 25.06, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
1-8 INTEREST. (a) Except as provided by Section 25.07 [of this code],
1-9 property encumbered by a leasehold or other possessory interest or
1-10 by a mortgage, deed of trust, or other interest securing payment or
1-11 performance of an obligation shall be listed in the name of the
1-12 owner of the property so encumbered.
1-13 (b) Except as otherwise directed in writing under Section
1-14 1.111(f), real property that is subject to an installment contract
1-15 of sale shall be listed in the name of the seller if the
1-16 installment contract is not filed of record in the real property
1-17 records of the county.
1-18 SECTION 2. Chapter 31, Tax Code, is amended by adding
1-19 Section 31.081 to read as follows:
1-20 Sec. 31.081. PROPERTY TAX WITHHOLDING ON PURCHASE OF
1-21 BUSINESS OR INVENTORY. (a) This section applies only to a person
1-22 who purchases a business, an interest in a business, or the
1-23 inventory of a business from a person who is liable under this
1-24 title for the payment of taxes imposed on personal property used in
2-1 the operation of that business.
2-2 (b) The purchaser shall withhold from the purchase price an
2-3 amount sufficient to pay all of the taxes imposed on the personal
2-4 property of the business, plus any penalties and interest incurred,
2-5 until the seller provides the purchaser with:
2-6 (1) a receipt issued by each appropriate collector
2-7 showing that the taxes due the applicable taxing unit, plus any
2-8 penalties and interest, have been paid; or
2-9 (2) a tax certificate issued under Section 31.08
2-10 stating that no taxes, penalties, or interest is due the applicable
2-11 taxing unit.
2-12 (c) A purchaser who fails to withhold the amount required by
2-13 this section is liable for that amount to the applicable taxing
2-14 units to the extent of the value of the purchase price, including
2-15 the value of a promissory note given in consideration of the sale
2-16 to the extent of the note's market value on the effective date of
2-17 the purchase, regardless of whether the purchaser has been required
2-18 to make any payments on that note.
2-19 (d) The purchaser may request each appropriate collector to
2-20 issue a tax certificate under Section 31.08 or a statement of the
2-21 amount of the taxes, penalties, and interest that are due to each
2-22 taxing unit for which the collector collects taxes. The collector
2-23 shall issue the certificate or statement before the 10th day after
2-24 the date the request is made. If a collector does not timely
2-25 provide or mail the certificate or statement to the purchaser, the
2-26 purchaser is released from the duties and liabilities imposed by
2-27 Subsections (b) and (c) in connection with taxes, penalties, and
3-1 interest due the applicable taxing unit.
3-2 (e) An action to enforce a duty or liability imposed on a
3-3 purchaser by Subsection (b) or (c) must be brought before the
3-4 fourth anniversary of the effective date of the purchase. An
3-5 action to enforce the purchaser's duty or liability is subject to a
3-6 limitation plea by the purchaser as to any taxes that have been
3-7 delinquent at least four years as of the date the collector issues
3-8 the statement under Subsection (d).
3-9 (f) This section does not release a person who sells a
3-10 business or the inventory of a business from any personal liability
3-11 imposed on the person for the payment of taxes imposed on the
3-12 personal property of the business or for penalties or interest on
3-13 those taxes.
3-14 (g) For purposes of this section:
3-15 (1) a person is considered to have purchased a
3-16 business if the person purchases the name of the business or the
3-17 goodwill associated with the business; and
3-18 (2) a person is considered to have purchased the
3-19 inventory of a business if the person purchases inventory of a
3-20 business, the value of which is at least 50 percent of the value of
3-21 the total inventory of the business on the date of the purchase.
3-22 SECTION 3. Section 32.01, Tax Code, is amended by
3-23 redesignating existing Subsection (c) as Subsection (d) and by
3-24 adding a new Subsection (c) to read as follows:
3-25 (c) If an owner's real property is described with certainty
3-26 by metes and bounds in one or more instruments of conveyance and
3-27 part of that property is the owner's residence homestead taxed
4-1 separately and apart from the remainder of the property, each of
4-2 the liens under this section that secures the taxes imposed on that
4-3 homestead and on the remainder of that property extends in solido
4-4 to all the real property described in the instrument or instruments
4-5 of conveyance.
4-6 (d) [(c)] The lien under this section is perfected on
4-7 attachment and, except as provided by Section 32.03(b), perfection
4-8 requires no further action by the taxing unit.
4-9 SECTION 4. Section 32.015(b), Tax Code, is amended to read
4-10 as follows:
4-11 (b) The collector may simultaneously file notice of tax
4-12 liens of all the taxing units served by the collector. However,
4-13 notice of any lien for taxes for the preceding [prior] calendar
4-14 year must be filed with the department before [prior to] September
4-15 1 of the following year. Any lien for which the notice is not
4-16 filed by that [such] date is unenforceable against:
4-17 (1) a bona fide purchaser for value who is without
4-18 notice or actual knowledge of the lien or the delinquent taxes for
4-19 which the tax lien exists; or
4-20 (2) the holder of a lien recorded on the manufactured
4-21 home document of title [extinguished and is not enforceable].
4-22 SECTION 5. Section 32.05(c), Tax Code, is amended to read as
4-23 follows:
4-24 (c) A tax lien provided by this chapter is inferior to a
4-25 claim:
4-26 (1) [claims] for any survivor's allowance, funeral
4-27 expenses, or expenses of the last illness of a decedent made
5-1 against the estate of a decedent as provided by law;
5-2 (2) under a[, or] recorded restrictive covenant
5-3 [covenants] running with the land, other than a restrictive
5-4 covenant in favor of a property owners' association or homeowners'
5-5 association recorded before January 1 of the year the tax lien
5-6 arose; or
5-7 (3) under a valid easement [easements] of record
5-8 [which were] recorded before [prior to] January 1 of the year the
5-9 tax lien arose.
5-10 SECTION 6. Section 32.07(e), Tax Code, is amended to read as
5-11 follows:
5-12 (e) With respect to an ad valorem tax or other money subject
5-13 to the provisions of Subsection (d), an individual who controls or
5-14 supervises the collection of tax or money from another person, or
5-15 an individual who controls or supervises the accounting for and
5-16 paying over of the tax or money, and who wilfully fails to pay or
5-17 cause to be paid the tax or money is liable as a responsible
5-18 individual for an amount equal to the tax or money, plus all
5-19 interest, penalties, and costs, not paid or caused to be paid. The
5-20 liability imposed by this subsection is in addition to any other
5-21 penalty provided by law. The dissolution of a corporation,
5-22 association, limited liability company, or partnership does not
5-23 affect a responsible individual's liability under this subsection.
5-24 SECTION 7. Section 32.07, Tax Code, is amended by adding
5-25 Subsection (h) to read as follows:
5-26 (h) For purposes of Subsection (a), a person is considered
5-27 to be an owner of property subject to an installment contract of
6-1 sale if the person is:
6-2 (1) the seller of the property; or
6-3 (2) a purchaser of the property who has the duty under
6-4 the installment contract to pay taxes on the property.
6-5 SECTION 8. Section 33.011(a), Tax Code, is amended to read
6-6 as follows:
6-7 (a) The governing body of a taxing unit shall waive
6-8 penalties and may provide for the waiver of interest on a
6-9 delinquent tax if an act or omission of an officer, employee, or
6-10 agent of the taxing unit or the appraisal district in which the
6-11 taxing unit participates caused or resulted in the taxpayer's
6-12 failure to pay the tax before delinquency and if the tax is paid
6-13 within 21 days after the taxpayer knows or should know of the
6-14 delinquency. The governing body of a taxing unit may:
6-15 (1) delegate to the collector for the taxing unit the
6-16 authority to waive penalties and interest under this subsection;
6-17 and
6-18 (2) impose limitations or restrictions on the exercise
6-19 of that authority.
6-20 SECTION 9. Section 33.04, Tax Code, is amended to read as
6-21 follows:
6-22 Sec. 33.04. NOTICE OF DELINQUENCY. (a) At least once each
6-23 year the collector for a taxing unit shall deliver a notice of
6-24 delinquency to each person whose name appears on the current
6-25 delinquent tax roll. However, the notice need not be delivered if:
6-26 (1) a bill for the tax was not mailed under [pursuant
6-27 to the authorization provided by] Section 31.01(f) [of this code];
7-1 or
7-2 (2) the collector does not know and by exercising
7-3 reasonable diligence cannot determine the delinquent taxpayer's
7-4 name and address.
7-5 (b) In addition to the notice required by Subsection (a)
7-6 [of this section], the [tax] collector for each taxing unit in each
7-7 year divisible by five shall deliver by mail a written notice of
7-8 delinquency to:
7-9 (1) each person whose name and mailing address are
7-10 listed on the most recent certified appraisal roll, if the taxes on
7-11 the property of that person are shown on the collector's records as
7-12 having [who owes a tax that has] been delinquent more than one
7-13 year; and
7-14 (2) each person who owes a tax on personal property or
7-15 an interest in a mineral estate that has been delinquent more than
7-16 one year, if that property or mineral estate is not listed on the
7-17 current appraisal under that person's name but that person's
7-18 [whose] name and mailing address are known to the collector [or can
7-19 be determined by the exercise of reasonable diligence].
7-20 (c) The collector [He] shall state in the notice required by
7-21 Subsection (b) the amount of the delinquent tax, penalties, and
7-22 interest due, the description of the property on which the tax was
7-23 imposed, and the year for which the tax is delinquent. Each notice
7-24 required by Subsection (b) to be delivered to [If] the same person
7-25 [owes delinquent taxes] for more than one year or on more than one
7-26 property[, the collector] may be included [include all the
7-27 delinquent taxes the person owes] in a single notice.
8-1 (d) In a suit brought against a person entitled to receive
8-2 notice under Subsection (b) for the collection of penalties
8-3 [(c) Penalties] and interest on a tax delinquent more than five
8-4 years or a multiple of five years, it is an affirmative defense
8-5 available to the person that [are cancelled and may not be
8-6 collected if] the collector did [has] not deliver [delivered] the
8-7 notice required by Subsection (b) [of this section in each year
8-8 that is divisible by five following the date on which the tax first
8-9 became delinquent for one year].
8-10 (e) Notwithstanding Subsection (d), interest and penalties
8-11 on a tax are reinstated and shall be collected by the collector if,
8-12 subsequent to the collector's failure to deliver the notice
8-13 required by Subsection (b), the collector delivers the notice in
8-14 any subsequent year divisible by five. The interest and penalties
8-15 on the tax are reinstated prospectively and begin to accrue at the
8-16 rates provided by Section 33.01 on the first day of the first month
8-17 that begins at least 21 days after the date the collector delivers
8-18 the subsequent notice.
8-19 (f) A notice under this section is presumed to be delivered
8-20 when it is deposited in regular first-class mail, postage prepaid,
8-21 and addressed to the appropriate person under Subsection (b).
8-22 Notwithstanding Section 1.07, the presumption of delivery under
8-23 this section may not be rebutted with evidence of failure to
8-24 receive the notice.
8-25 SECTION 10. Section 33.07, Tax Code, is amended to read as
8-26 follows:
8-27 Sec. 33.07. Additional Penalty for Collection Costs FOR
9-1 TAXES DUE BEFORE JUNE 1. (a) A taxing unit or appraisal district
9-2 may provide, in the manner required by law for official action by
9-3 the body, that taxes that become delinquent on or after February 1
9-4 of a year but not later than May 1 of that year and that remain
9-5 delinquent on July 1 of the year in which they become delinquent
9-6 incur an additional penalty to defray costs of collection, if the
9-7 unit or district or another unit that collects taxes for the unit
9-8 has contracted with an attorney pursuant to Section 6.30 of this
9-9 code. The amount of the penalty may not exceed 15 percent of the
9-10 amount of taxes, penalty, and interest due.
9-11 (b) A tax lien attaches to the property on which the tax is
9-12 imposed to secure payment of the penalty.
9-13 (c) If a penalty is imposed pursuant to this section, a
9-14 taxing unit may not recover attorney's fees in a suit to collect
9-15 delinquent taxes subject to the penalty.
9-16 (d) If a taxing unit or appraisal district provides for a
9-17 penalty under this section, the collector shall deliver a notice of
9-18 delinquency and of the penalty to the property owner at least 30
9-19 and not more than 60 days before July 1.
9-20 SECTION 11. Subchapter A, Chapter 33, Tax Code, is amended
9-21 by adding Section 33.08 to read as follows:
9-22 Sec. 33.08. ADDITIONAL PENALTY FOR COLLECTION COSTS FOR
9-23 TAXES DUE ON OR AFTER JUNE 1. (a) This section applies to a
9-24 taxing unit or appraisal district only if:
9-25 (1) the governing body of the taxing unit or appraisal
9-26 district has imposed the additional penalty for collection costs
9-27 under Section 33.07; and
10-1 (2) the taxing unit or appraisal district, or another
10-2 taxing unit that collects taxes for the unit, has entered into a
10-3 contract with an attorney under Section 6.30 for the collection of
10-4 the unit's delinquent taxes.
10-5 (b) The governing body of the taxing unit or appraisal
10-6 district, in the manner required by law for official action, may
10-7 provide that taxes that become delinquent on or after June 1 under
10-8 Section 31.03, 31.031, 31.032, or 31.04 incur an additional penalty
10-9 to defray costs of collection. The amount of the penalty may not
10-10 exceed 15 percent of the amount of taxes, penalty, and interest
10-11 due.
10-12 (c) After the taxes become delinquent, the collector for a
10-13 taxing unit or appraisal district that has provided for the
10-14 additional penalty under this section shall send a notice of the
10-15 delinquency and the penalty to the property owner. The penalty is
10-16 incurred on the first day of the first month that begins at least
10-17 21 days after the date the notice is sent.
10-18 (d) A tax lien attaches to the property on which the tax is
10-19 imposed to secure payment of the additional penalty.
10-20 (e) A taxing unit or appraisal district that imposes the
10-21 additional penalty under this section may not recover attorney's
10-22 fees in a suit to collect delinquent taxes subject to the penalty.
10-23 SECTION 12. Section 33.43(a), Tax Code, is amended to read
10-24 as follows:
10-25 (a) A petition initiating a suit to collect a delinquent
10-26 property tax is sufficient if it alleges that:
10-27 (1) the taxing unit is legally constituted and
11-1 authorized to impose and collect ad valorem taxes on property;
11-2 (2) tax in a stated amount was legally imposed on each
11-3 separately described property for each year specified and on each
11-4 person named if known who owned the property on January 1 of the
11-5 year for which the tax was imposed;
11-6 (3) the tax was imposed in the county in which the
11-7 suit is filed;
11-8 (4) the tax is delinquent;
11-9 (5) penalties, interest, and costs authorized by law
11-10 in a stated amount for each separately assessed property are due;
11-11 (6) the taxing unit is entitled to recover [taxes
11-12 imposed on the property for the current tax year and each
11-13 subsequent tax year until the property is sold under Section 34.01
11-14 or 34.015, as applicable, prorated to the date of the sale, and]
11-15 each penalty that is incurred and all interest that accrues on
11-16 delinquent taxes imposed on the property from the date of the
11-17 judgment to the date of the sale under Section 34.01 or 34.015, as
11-18 applicable, if the suit seeks to foreclose a tax lien;
11-19 (7) the person sued owned the property on January 1 of
11-20 the year for which the tax was imposed if the suit seeks to enforce
11-21 personal liability;
11-22 (8) the person sued owns the property when the suit is
11-23 filed if the suit seeks to foreclose a tax lien;
11-24 (9) the taxing unit asserts a lien on each separately
11-25 described property to secure the payment of all taxes, penalties,
11-26 interest, and costs due if the suit seeks to foreclose a tax lien;
11-27 (10) all things required by law to be done have been
12-1 done properly by the appropriate officials; and
12-2 (11) the attorney signing the petition is legally
12-3 authorized to prosecute the suit on behalf of the taxing unit.
12-4 SECTION 13. Section 33.47(a), Tax Code, is amended to read
12-5 as follows:
12-6 (a) In a suit to collect a delinquent tax, the taxing unit's
12-7 current tax roll and delinquent tax roll or certified copies of the
12-8 entries showing the property and the amount of the tax and
12-9 penalties imposed and interest accrued constitute prima facie
12-10 evidence that each person charged with a duty relating to the
12-11 imposition of the tax has complied with all requirements of law and
12-12 that the amount of tax alleged to be delinquent against the
12-13 property and the amount of penalties and interest due on that tax
12-14 as listed are the correct amounts [is the correct amount].
12-15 SECTION 14. Section 33.50, Tax Code, is amended by adding
12-16 Subsection (c) to read as follows:
12-17 (c) The order of sale shall also specify that the property
12-18 may not be sold to a person owning an interest in the property or
12-19 to a person who is a party to the suit other than a taxing unit
12-20 unless:
12-21 (1) that person is the highest bidder at the tax sale;
12-22 and
12-23 (2) the amount bid by that person is equal to or
12-24 greater than the aggregate amount of the judgments against the
12-25 property, including all costs of suit and sale.
12-26 SECTION 15. Section 33.52, Tax Code, as amended by Chapters
12-27 906, 981, and 1111, Acts of the 75th Legislature, Regular Session,
13-1 1997, is reenacted and amended to read as follows:
13-2 Sec. 33.52. TAXES INCLUDED IN JUDGMENT [FOR CURRENT TAXES].
13-3 (a) Only taxes that are delinquent on the date of a judgment may
13-4 be included in the amount recoverable under the judgment by the
13-5 taxing units that are parties to the suit [If the court orders the
13-6 foreclosure of a tax lien and the sale of real property, the
13-7 judgment may include foreclosure on any unpaid tax on the property
13-8 for the current year].
13-9 (b) In lieu of stating as a liquidated amount the aggregate
13-10 total of taxes, penalties, and interest due, a judgment may:
13-11 (1) set out the tax due each taxing unit for each
13-12 year; and
13-13 (2) provide that penalties and interest accrue on the
13-14 unpaid taxes as provided by Subchapter A [If the amount of tax for
13-15 the current tax year has not been determined on the date of
13-16 judgment, the court may order recovery of and foreclosure on the
13-17 amount of tax imposed on the property for the preceding tax year].
13-18 (c) For purposes of calculating penalties and interest due
13-19 under the judgment, it is presumed that the delinquency date for a
13-20 tax is February 1 of the year following the year in which the tax
13-21 was imposed, unless the judgment provides otherwise [If the
13-22 judgment does not provide for recovery of taxes imposed for the
13-23 current tax year, or for recovery of estimated taxes that cannot
13-24 then be calculated for the current year, the real property is
13-25 subject to the taxes for the current tax year and to the lien that
13-26 secures those taxes, and any subsequent purchaser takes the
13-27 property subject to those taxes and the tax lien].
14-1 (d) A taxing unit's claim for taxes that become delinquent
14-2 after the date of the judgment is not affected by the entry of the
14-3 judgment or a tax sale conducted under that judgment. Those taxes
14-4 may be collected by any remedy provided by this title.
14-5 SECTION 16. Section 33.53, Tax Code, is amended to read as
14-6 follows:
14-7 Sec. 33.53. ORDER OF SALE; PAYMENT BEFORE SALE. (a) If
14-8 judgment in a suit to collect a delinquent tax is for foreclosure
14-9 of a tax lien, the court shall order the property sold in
14-10 satisfaction of the amount of the judgment.
14-11 (b) On application by a taxing unit that is a party to the
14-12 judgment, the district clerk shall prepare an order to an officer
14-13 authorized to conduct execution sales ordering the sale of the
14-14 property. If more than one parcel of property is included in the
14-15 judgment, the taxing unit may specify particular parcels to be
14-16 sold. A taxing unit may request more than one order of sale as
14-17 necessary to collect all amounts due under the judgment.
14-18 (c) An order of sale:
14-19 (1) shall be returned to the district clerk as
14-20 unexecuted if not executed before the 181st day after the date the
14-21 order is issued; and
14-22 (2) may:
14-23 (A) be accompanied by a copy of the judgment and
14-24 a bill of costs attached to the order; or
14-25 (B) incorporate the terms of the judgment or
14-26 bill of costs by reference.
14-27 (d) A judgment or a bill of costs attached to the order of
15-1 sale is not required to be certified.
15-2 (e) If the owner pays the amount of the judgment before the
15-3 property is sold, the taxing unit shall:
15-4 (1) release the tax lien held by the taxing unit on
15-5 the property; and
15-6 (2) file for record with the clerk of the court in
15-7 which the judgment was rendered a release of the lien.
15-8 SECTION 17. Section 34.01, Tax Code, is amended to read as
15-9 follows:
15-10 Sec. 34.01. SALE OF PROPERTY. (a) Property seized or
15-11 ordered sold pursuant to foreclosure of a tax lien shall be sold by
15-12 the officer charged with selling the property, unless otherwise
15-13 directed by the taxing unit that requested the order of sale or by
15-14 an authorized agent or attorney for that unit. The sale shall be
15-15 conducted in the manner similar property is sold under execution
15-16 except as otherwise provided by this subtitle [subchapter].
15-17 (b) On receipt of an order of sale of real property, the
15-18 officer charged with selling the property shall endorse on the
15-19 order the date and exact time when the officer received the order.
15-20 The endorsement is a levy on the property without necessity for
15-21 going upon the ground. The officer shall calculate the total
15-22 amount due under the judgment, including all taxes, penalties, and
15-23 interest, plus any other amount awarded by the judgment, court
15-24 costs, and the costs of the sale, including the costs of
15-25 advertising under Subsection (d). To assist the officer in making
15-26 the calculation, the collector of any taxing unit that is party to
15-27 the judgment may provide the officer with a certified tax statement
16-1 showing the amount due that taxing unit as of the date of the
16-2 proposed sale. If a certified tax statement is provided to the
16-3 officer, the officer shall rely on the amount included in the
16-4 statement and is not responsible or liable for the accuracy of the
16-5 applicable portion of the calculation.
16-6 (c) The officer charged with the sale shall give written
16-7 notice of the sale in the manner prescribed by Rule 21a, Texas
16-8 Rules of Civil Procedure, as amended, or that rule's successor to
16-9 each person who was a defendant to the judgment or that person's
16-10 attorney.
16-11 (d) The officer shall advertise the time and place of the
16-12 sale by having the notice of the sale published in English at least
16-13 once in a newspaper published in the county in which the sale is to
16-14 occur, not later than the 20th day before the date of the sale.
16-15 (e) An officer's failure to send the written notice of sale
16-16 or a defendant's failure to receive that notice is insufficient by
16-17 itself to invalidate:
16-18 (1) the sale of the property; or
16-19 (2) the title conveyed by that sale.
16-20 (f) A notice of sale under Subsection (c) or (d) may
16-21 include:
16-22 (1) one or more properties foreclosed by a single
16-23 judgment; or
16-24 (2) one or more properties foreclosed by multiple
16-25 judgments in more than one cause of action.
16-26 (g) A notice of sale under Subsection (c) or (d) must
16-27 substantially comply with this subsection. The notice must
17-1 include:
17-2 (1) a statement of the authority under which the sale
17-3 is to be made;
17-4 (2) the date, time, and location of the sale; and
17-5 (3) a brief description of the property to be sold.
17-6 (h) A notice of sale is not required to include field notes
17-7 describing the property. A description of the property is
17-8 sufficient if the notice:
17-9 (1) states the number of acres and identifies the
17-10 original survey;
17-11 (2) as to property located in a platted subdivision or
17-12 addition, regardless of whether the subdivision or addition is
17-13 recorded, states the name by which the land is generally known
17-14 with reference to that subdivision or addition; or
17-15 (3) by reference adopts the description of the
17-16 property contained in the judgment.
17-17 (i) For publishing a notice of sale, a newspaper may charge
17-18 a rate that does not exceed the greater of:
17-19 (1) two cents per word; or
17-20 (2) an amount equal to the published word or line rate
17-21 of that newspaper for the same class of advertising.
17-22 (j) If there is not a newspaper published in the county of
17-23 the sale, or a newspaper that will publish the notice of sale for
17-24 the rate authorized by Subsection (i), the officer shall post the
17-25 notice in writing in three public places in the county not later
17-26 than the 20th day before the date of the sale. One of the notices
17-27 must be posted at the door of the county courthouse.
18-1 (k) The owner of real property subject to sale may file with
18-2 the officer charged with the sale a written request that the
18-3 property be divided and that only as many portions be sold as [is]
18-4 necessary to pay the amount [tax, penalties, interest, and costs
18-5 adjudged] due against the property, as calculated under Subsection
18-6 (b). In the request the owner shall describe the desired portions
18-7 and shall specify the order in which the portions should be sold.
18-8 The owner may not specify more than four portions or a portion that
18-9 divides a building or other contiguous improvement. The request
18-10 must be delivered to the officer not later than the seventh day
18-11 before the date of the sale.
18-12 (l) [(c)] If a [sufficient] bid sufficient to pay the lesser
18-13 of the amount calculated under Subsection (b) or the adjudged value
18-14 is not received, the taxing unit that requested the order of sale
18-15 may terminate the sale. If the taxing unit does not terminate the
18-16 sale, the officer making the sale shall bid the property off to the
18-17 [a] taxing unit that requested the order of sale, unless otherwise
18-18 agreed by each other taxing unit that is a party to the judgment,
18-19 for the aggregate amount of the judgment against the property or
18-20 for the market value of the property as specified in the judgment,
18-21 whichever is less. The duty of the officer conducting the sale to
18-22 bid off the property to a taxing unit under this subsection is
18-23 self-executing. The actual attendance of a representative of the
18-24 taxing unit at the sale is not a prerequisite to that duty.
18-25 (m) The taxing unit to which the property is bid off takes
18-26 title to the property for the use and benefit of itself and all
18-27 other taxing units that established tax liens in the suit. The
19-1 taxing unit's title includes all the interest owned by the
19-2 defendant, including the defendant's right to the use and
19-3 possession of the property, subject only to the defendant's right
19-4 of redemption. Payments in satisfaction of the judgment and any
19-5 costs or expenses of the sale may not be required of the purchasing
19-6 taxing unit until the property is redeemed or resold by the
19-7 purchasing taxing unit.
19-8 (n) Notwithstanding that property is bid off to a taxing
19-9 unit under this section, a taxing unit that established a tax lien
19-10 in the suit may continue to enforce collection of any amount for
19-11 which a former owner of the property is liable to the taxing unit,
19-12 including any post-judgment taxes, penalties, and interest, in any
19-13 other manner provided by law.
19-14 (o) [(d)] The officer making the sale shall prepare a deed
19-15 to the purchaser of real property at the sale, [or] to any other
19-16 person whom the purchaser may specify, or to the taxing unit to
19-17 which the property was bid off. The taxing unit that requested the
19-18 order of sale may elect to prepare a deed for execution by the
19-19 officer. The officer shall execute the deed and either file the
19-20 deed for recording with the county clerk or deliver the executed
19-21 deed to the taxing unit that requested the order of sale, which
19-22 shall file the deed for recording with the county clerk. The
19-23 county clerk shall file and record each deed filed under this
19-24 subsection without a recording or other fee for that filing and
19-25 after recording shall return the deed to the grantee.
19-26 (p) The deed vests good and perfect title in the purchaser
19-27 or the purchaser's assigns to the interest owned by the defendant
20-1 in the property subject to the foreclosure, including the
20-2 defendant's right to the use and possession of the property,
20-3 subject only to the defendant's right of redemption, the terms of a
20-4 recorded restrictive covenant [covenants] running with the land
20-5 that was recorded before January 1 of the year in which the tax
20-6 lien on the property arose, a recorded lien that arose under that
20-7 restrictive covenant that was not extinguished in the judgment
20-8 foreclosing the tax lien, and each valid easement [easements] of
20-9 record as of the date of the sale that was[, if such covenants or
20-10 easements were] recorded before [prior to] January 1 of the year
20-11 the tax lien arose. The deed may be impeached only for fraud.
20-12 (q) [(e)] Notwithstanding Subsection (l) [(c)], if a
20-13 sufficient bid is not received, the officer making the sale may bid
20-14 off property seized under Subchapter E, Chapter 33, [off] to a
20-15 person described by Section 11.181 for less than the tax warrant
20-16 amount or the market value of the property. Consent to the sale by
20-17 the taxing units entitled to receive proceeds of the sale is not
20-18 required.
20-19 (r) [(f)] Except as provided by [in] Subsection (q) [(e)],
20-20 property seized under Subchapter E, Chapter 33, may not be sold for
20-21 an amount that is less than the lesser of the market value of the
20-22 property or the total amount of taxes due on the property. A
20-23 taxing unit that takes title to property seized under that
20-24 subchapter takes title to the property for the use and benefit of
20-25 that taxing unit and all other taxing units that established tax
20-26 liens in the suit or that, on the date of the seizure, were owed
20-27 delinquent taxes on the property.
21-1 (s) A sale of property under this section to a purchaser
21-2 other than a taxing unit:
21-3 (1) extinguishes each lien securing payment of the
21-4 taxes, penalties, and interest against that property and included
21-5 in the judgment; and
21-6 (2) does not affect the personal liability of any
21-7 person for those taxes, penalties, and interest included in the
21-8 judgment that are not satisfied from the proceeds of the sale.
21-9 (t) A sale of real property under this section must take
21-10 place at the county courthouse in the county in which the land is
21-11 located. The sale shall occur in the same location in the
21-12 courthouse that is designated by the commissioners court of the
21-13 county for the sale of real property under Section 51.002, Property
21-14 Code.
21-15 (u) To the extent of a conflict between this section and a
21-16 provision of the Texas Rules of Civil Procedure that relates to an
21-17 execution, this section controls.
21-18 SECTION 18. Section 34.015(a), Tax Code, is amended to read
21-19 as follows:
21-20 (a) Notwithstanding any other provision of this subchapter,
21-21 the governing body of a municipality may provide for the manner in
21-22 which land acquired by the municipality following the seizure of
21-23 the land or the foreclosure of a tax lien in favor of the
21-24 municipality may be sold if the land is sold to:
21-25 (1) a nonprofit organization that develops housing for
21-26 low income individuals and families as a primary activity to
21-27 promote community-based revitalization of the municipality; or
22-1 (2) a nonprofit corporation described by 26 U.S.C.
22-2 Section 501(c)(3) that:
22-3 (A) has been incorporated in this state for at
22-4 least one year;
22-5 (B) has a corporate purpose to develop
22-6 affordable housing that is stated in its articles of incorporation,
22-7 bylaws, or charter;
22-8 (C) has at least one-fourth of its board of
22-9 directors residing in the municipality; and
22-10 (D) engages primarily in the building, repair,
22-11 rental, or sale of housing for low income individuals and families.
22-12 SECTION 19. Section 34.02, Tax Code, is amended to read as
22-13 follows:
22-14 Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of
22-15 a tax sale under Section 33.94 or 34.01 shall be applied in the
22-16 order prescribed by Subsection (b) [first to the payment of costs].
22-17 The amount included under each subdivision of Subsection (b) must
22-18 be fully paid before any of the proceeds may be applied to the
22-19 amount included under a subsequent subdivision [The remainder shall
22-20 be distributed to all taxing units participating in the sale in
22-21 satisfaction of the taxes, penalties, and interest due each].
22-22 (b) The proceeds shall be applied to:
22-23 (1) all costs of advertising the tax sale and all
22-24 original court costs payable to the clerk of the court;
22-25 (2) all fees and commissions payable to the officer
22-26 conducting the sale;
22-27 (3) taxes, penalties, and interest that are due under
23-1 the judgment; and
23-2 (4) any other amount awarded to a taxing unit under
23-3 the judgment.
23-4 (c) If the proceeds are not sufficient to pay the total
23-5 amount included under any subdivision of Subsection (b) [costs and
23-6 taxes, penalties, and interest due all participants in the sale],
23-7 each participant in the amount included under that subdivision is
23-8 entitled to a share of the proceeds [after payment of costs] in an
23-9 amount equal to the proportion its entitlement bears [taxes,
23-10 penalties, and interest bear] to the total amount included under
23-11 that subdivision [of taxes, penalties, and interest due all
23-12 participants in the sale].
23-13 (d) [(c)] If the sale is pursuant to foreclosure of a tax
23-14 lien, the officer conducting the sale shall pay any excess proceeds
23-15 after payment of all amounts [costs and of all taxes, penalties,
23-16 and interest] due all participants in the sale as specified by
23-17 Subsection (b) to the clerk of the court issuing the order of sale.
23-18 (e) [(d)] If the sale is pursuant to seizure of personal
23-19 property, the officer conducting the sale shall distribute any
23-20 excess of proceeds as provided by law for excess proceeds in the
23-21 case of execution.
23-22 (f) [(e)] In this section, "taxes" includes a charge, fee,
23-23 or expense that is expressly authorized by Section 32.06 or 32.065.
23-24 SECTION 20. Section 34.04, Tax Code, is amended to read as
23-25 follows:
23-26 Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (a) A person,
23-27 including a taxing unit, may file a petition in the court that
24-1 ordered the seizure or sale setting forth a claim to the excess
24-2 proceeds. The petition must be filed before the second anniversary
24-3 of [within seven years from] the date of the sale of the property.
24-4 The petition is not required to be filed as an original suit
24-5 separate from the underlying suit for seizure of the property or
24-6 foreclosure of a tax lien on the property but may be filed under
24-7 the cause number of the underlying suit.
24-8 (b) A copy of the petition shall be served, in the manner
24-9 prescribed by Rule 21a, Texas Rules of Civil Procedure, as
24-10 amended, or that rule's successor, on [the county attorney or, if
24-11 there is no county attorney, the district attorney and on] all
24-12 parties to the underlying action [suit that ordered the sale, if
24-13 any,] not later than the 20th day before the date set for a hearing
24-14 on the petition.
24-15 (c) At the hearing [if] the court [finds that the claimant
24-16 is entitled to recover the excess proceeds, it] shall order that
24-17 the proceeds be paid according to the following priorities to each
24-18 party that establishes its claim to the proceeds:
24-19 (1) to a taxing unit for any taxes, penalties, or
24-20 interest that have become due or delinquent on the subject property
24-21 subsequent to the date of the judgment;
24-22 (2) to any other lienholder, consensual or otherwise,
24-23 for the amount due under a lien, in accordance with the priorities
24-24 established by applicable law;
24-25 (3) to a taxing unit for any unpaid taxes, penalties,
24-26 interest, or other amounts adjudged due under the judgment that
24-27 were not satisfied from the proceeds from the tax sale; and
25-1 (4) to each owner of the property [him].
25-2 (d) Interest or costs may not be allowed under this section.
25-3 [(d) A claim for the excess proceeds may not be filed after
25-4 the expiration of seven years from the date the property is sold.]
25-5 SECTION 21. Section 34.05(a), Tax Code, as amended by
25-6 Chapters 906 and 1111, Acts of the 75th Legislature, Regular
25-7 Session, 1997, is reenacted to read as follows:
25-8 (a) If property is sold to a taxing unit that is a party to
25-9 the judgment, the taxing unit may sell the property at any time by
25-10 public or private sale. In selling the property, the taxing unit
25-11 may, but is not required to, use the procedures provided by Section
25-12 263.001, Local Government Code, or Section 272.001, Local
25-13 Government Code. The sale is subject to any right of redemption of
25-14 the former owner. The redemption period begins on the date the
25-15 deed to the taxing unit is filed for record.
25-16 SECTION 22. Sections 34.05(c) and (d), Tax Code, are amended
25-17 to read as follows:
25-18 (c) The taxing unit purchasing the property by resolution of
25-19 its governing body may request the sheriff or a constable to sell
25-20 the property at a public sale. If the purchasing taxing unit has
25-21 not sold the property within six months after the date on which the
25-22 owner's right of redemption terminates, any taxing unit that is
25-23 entitled to receive proceeds of the sale by resolution of its
25-24 governing body may request the sheriff or a constable in writing to
25-25 sell the property at a public sale. On receipt of a request made
25-26 under this subsection, the sheriff or constable shall sell the
25-27 property as provided by Subsection (d) [of this section], unless
26-1 the property is sold under [pursuant to] Subsection (h) or (i) [of
26-2 this section] before the date set for the public sale.
26-3 (d) Except as provided by this subsection, all public sales
26-4 requested as provided by Subsection (c) [of this section] shall be
26-5 conducted in the manner prescribed by the Texas Rules of Civil
26-6 Procedure for the sale of property under execution. The notice of
26-7 the sale must contain a description of the property to be sold,
26-8 which must be a legal description in the case of real property, the
26-9 number and style of the suit under which the property was sold at
26-10 the tax foreclosure sale, and the date of the tax foreclosure sale.
26-11 If the commissioners court of a county by order specifies the date
26-12 or time at which or location in the county where a public sale
26-13 requested under Subsection (c) shall be conducted, the sale shall
26-14 be conducted on the date and at the time and location specified in
26-15 the order. The acceptance of a bid by the officer conducting the
26-16 sale is conclusive and binding on the question of its sufficiency.
26-17 An action to set aside the sale on the grounds that the bid is
26-18 insufficient may not be sustained in court, except that a taxing
26-19 unit that participates in distribution of proceeds of the sale may
26-20 file an action before the first anniversary of [within one year
26-21 after] the date of the sale to set aside the sale on the grounds of
26-22 fraud or collusion between the officer making the sale and the
26-23 purchaser. On conclusion of the sale, the officer making the sale
26-24 shall prepare a deed to the purchaser. The taxing unit that
26-25 requested the sale may elect to prepare a deed for execution by the
26-26 officer. The officer shall execute the deed and either file the
26-27 deed for recording with the county clerk or deliver the executed
27-1 deed to the taxing unit that requested the sale, which shall file
27-2 the deed for recording with the county clerk. The county clerk
27-3 shall file and record each deed under this subsection without
27-4 imposing a recording or other fee for that filing and after
27-5 recording shall return the deed to the grantee.
27-6 SECTION 23. Section 34.05(h), Tax Code, as added by Chapter
27-7 712, Acts of the 75th Legislature, Regular Session, 1997, is
27-8 redesignated as Section 34.05(g), Tax Code, and amended to read as
27-9 follows:
27-10 (g) [(h)] A taxing unit to which property is bid off [in]
27-11 may recover its costs of upkeep, maintenance, and environmental
27-12 cleanup from the resale proceeds without further court order.
27-13 SECTION 24. Section 34.06, Tax Code, is amended by amending
27-14 Subsections (b) and (c) and adding Subsections (d), (e), and (f) to
27-15 read as follows:
27-16 (b) The [purchasing taxing unit shall pay all costs and
27-17 expenses of court, sale, and resale and, after deducting an amount
27-18 equal to the amount the taxing unit has reasonably spent for the
27-19 maintenance and preservation of the property, shall distribute the
27-20 remainder of the] proceeds of the resale shall be distributed as
27-21 required by Subsections (c)-(e).
27-22 (c) The purchasing taxing unit shall first retain an amount
27-23 from the proceeds to reimburse the unit for reasonable costs, as
27-24 defined by Section 34.21, incurred by the unit for:
27-25 (1) maintaining, preserving, and safekeeping the
27-26 property;
27-27 (2) marketing the property for resale; and
28-1 (3) costs described by Subsection (d).
28-2 (d) After retaining the amount authorized by Subsection (c),
28-3 the purchasing taxing unit shall then pay all costs of:
28-4 (1) the officer conducting the sale of the property;
28-5 and
28-6 (2) the clerk of the court in connection with the suit
28-7 and the sale of the property.
28-8 (e) After making the distribution under Subsection (d), any
28-9 remaining balance of the proceeds shall be paid to each taxing unit
28-10 participating in the sale in an amount equal to the proportion each
28-11 participant's taxes, penalties, and interest bear to the total
28-12 amount of taxes, penalties, and interest adjudged to be due all
28-13 participants in the sale[, less any amounts previously paid as
28-14 costs on the property as defined under Section 34.21(i)].
28-15 (f) The [(c) Notwithstanding Subsection (b), the]
28-16 purchasing taxing unit is entitled to recover from the proceeds of
28-17 a resale of the property any cost incurred by the taxing unit in
28-18 inspecting the property to determine whether there is a release or
28-19 threatened release of solid waste from the property in violation of
28-20 Chapter 361, Health and Safety Code, or a rule adopted or permit or
28-21 order issued by the Texas Natural Resource Conservation Commission
28-22 under that chapter, or a discharge or threatened discharge of waste
28-23 or a pollutant into or adjacent to water in this state from a point
28-24 of discharge on the property in violation of Chapter 26, Water
28-25 Code, or a rule adopted or permit or order issued by the commission
28-26 under that chapter, and in taking action to remove or remediate the
28-27 release or threatened release or discharge or threatened discharge
29-1 regardless of whether the taxing unit:
29-2 (1) was required by law to incur the cost; or
29-3 (2) obtained the consent of each taxing unit entitled
29-4 to receive proceeds of the sale under the judgment of foreclosure
29-5 to incur the cost.
29-6 SECTION 25. Section 34.07, Tax Code, is amended to read as
29-7 follows:
29-8 Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) The
29-9 purchaser at a void or defective tax sale or tax resale is
29-10 subrogated to the rights of the taxing unit in whose behalf the
29-11 property was sold or resold to the same extent a purchaser at a
29-12 void or defective sale conducted in behalf of a judgment creditor
29-13 is subrogated to the rights of the judgment creditor.
29-14 (b) Except as provided by Subsection (c) [of this section],
29-15 the purchaser at a void or defective tax sale or tax resale is
29-16 subrogated to the tax lien of the taxing unit in whose behalf the
29-17 property was sold or resold to the same extent a purchaser at a
29-18 void or defective mortgage or other lien foreclosure sale is
29-19 subrogated to the lien of the lienholder, and the purchaser is
29-20 entitled to a reforeclosure of the lien to which the purchaser [he]
29-21 is subrogated.
29-22 (c) If the purchaser at a void or defective tax sale or tax
29-23 resale paid less than the total amount of the judgment against the
29-24 property, the purchaser [he] is subrogated to the tax lien only in
29-25 the amount the purchaser [he] paid at the sale or resale.
29-26 (d) In lieu of pursuing the subrogation rights provided by
29-27 this section to which a purchaser [he] is subrogated, a purchaser
30-1 at a void tax sale may elect to file an action against the taxing
30-2 units to which the proceeds of the sale were distributed to recover
30-3 the amount paid at the sale. A purchaser who files a suit
30-4 authorized by this subsection waives all rights of subrogation [to
30-5 which he would] otherwise provided by this section [be subrogated].
30-6 (e) If the purchaser prevails in a suit filed under
30-7 Subsection (d), the court shall expressly provide in its final
30-8 judgment that:
30-9 (1) the tax sale is vacated and set aside; and
30-10 (2) any lien on the property extinguished by the tax
30-11 sale is reinstated on the property effective as of the date on
30-12 which the lien originally attached to the property.
30-13 SECTION 26. Section 34.21, Tax Code, as amended by Chapters
30-14 906, 914, and 1111, Acts of the 75th Legislature, Regular Session,
30-15 1997, is reenacted and amended to read as follows:
30-16 Sec. 34.21. RIGHT OF REDEMPTION. (a) The owner of real
30-17 property sold at a tax sale to a purchaser other than a taxing unit
30-18 [and] that was used as the residence homestead of the owner or that
30-19 was land designated for agricultural use when [judgment in] the
30-20 suit or the application for the warrant [to collect the tax] was
30-21 filed [rendered or when the tax warrant was issued] may redeem the
30-22 property on or before the second anniversary of [within two years
30-23 after] the date on which the purchaser's deed is filed for record
30-24 by paying the purchaser the amount the purchaser bid for the
30-25 property, the amount of the deed recording fee, and the amount paid
30-26 by the purchaser as taxes, penalties, interest, and costs on the
30-27 property, plus a redemption premium of 25 percent of the aggregate
31-1 total if the property is redeemed during the first year of the
31-2 redemption period or 50 percent of the aggregate total if the
31-3 property is redeemed during the second year of the redemption
31-4 period.
31-5 (b) If property that was used as the owner's residence
31-6 homestead or was land designated for agricultural use when the suit
31-7 or the application for the warrant [to collect the tax] was filed
31-8 is bid off to a taxing unit under Section 34.01(l) [34.01(c)] and
31-9 has not been resold by the taxing unit, the owner having a right of
31-10 redemption may redeem the property on or before the second
31-11 anniversary of [within two years after] the date on which the deed
31-12 of the taxing unit is filed for record by paying the taxing unit
31-13 the lesser of the amount of the judgment against the property or
31-14 the market value of the property as specified in that judgment,
31-15 [whichever is less,] plus the amount of the fee for filing the
31-16 taxing unit's deed and the amount spent [expended] by the taxing
31-17 unit as costs on the property.
31-18 (c) If real property that was used as the owner's residence
31-19 homestead or was land designated for agricultural use when the suit
31-20 or the application for the warrant [to collect the tax] was filed
31-21 has been resold by the taxing unit under Section 34.05, the owner
31-22 of the property having a right of redemption may redeem the
31-23 property on or before the second anniversary of [within two years
31-24 after] the date on which the taxing unit files for record the deed
31-25 from the sheriff or constable by paying the person who purchased
31-26 the property from the taxing unit the amount the purchaser paid for
31-27 the property, the amount of the fee for filing the purchaser's deed
32-1 for record, the amount paid by the purchaser as taxes, penalties,
32-2 interest, and costs on the property, plus a redemption premium of
32-3 25 percent of the aggregate total if the property is redeemed in
32-4 the first year of the redemption period or 50 percent of the
32-5 aggregate total if the property is redeemed in the second year of
32-6 the redemption period.
32-7 (d) If the amount paid by the owner of the property under
32-8 Subsection (c) is less than the amount of the judgment under which
32-9 the property was sold, the owner shall pay to the taxing unit to
32-10 which the property was bid off under Section 34.01 an amount equal
32-11 to the difference between the amount paid under Subsection (c) and
32-12 the amount of the judgment. The taxing unit shall issue a receipt
32-13 for a payment received under this subsection and shall distribute
32-14 the amount received to each taxing unit that participated in the
32-15 judgment and sale in an amount proportional to the unit's share of
32-16 the total amount of the aggregate judgments of the participating
32-17 taxing units. The owner of the property shall deliver the receipt
32-18 received from the taxing unit to the person from whom the property
32-19 is redeemed.
32-20 (e) The owner of real property sold at a tax sale other than
32-21 property that was used as the residence homestead of the owner or
32-22 that was land designated for agricultural use when the suit or the
32-23 application for the warrant [to collect the tax] was filed may
32-24 redeem the property in the same manner and by paying the same
32-25 amounts as prescribed by Subsection (a), (b), [or] (c), or (d), as
32-26 applicable, except that:
32-27 (1) the owner's right of redemption may be exercised
33-1 not [no] later than the 180th day [180 days] following the date on
33-2 which the purchaser's or taxing unit's deed is filed for record;
33-3 and
33-4 (2) the redemption premium payable by the owner to a
33-5 purchaser other than a taxing unit may [shall] not exceed 25
33-6 percent.
33-7 (f) [(e)] If the owner of the real property makes an
33-8 affidavit that the owner has made diligent search in the county in
33-9 which the property is located for the purchaser at the tax sale or
33-10 for the purchaser at resale, and has failed to find the purchaser,
33-11 that the purchaser is not a resident of the county in which the
33-12 property is located, that the owner and the purchaser cannot agree
33-13 on the amount of redemption money due, or that the purchaser
33-14 refuses to give the owner a quitclaim deed to the property, the
33-15 owner may redeem the land by paying the required amount as
33-16 prescribed by this section to the assessor-collector for the county
33-17 in which the property described has been redeemed. The
33-18 assessor-collector receiving the payment shall give the owner a
33-19 signed receipt witnessed by two persons. The receipt, when
33-20 recorded, is notice to all persons that the property described has
33-21 been redeemed. The assessor-collector shall on demand pay the
33-22 money received by the assessor-collector to the purchaser.
33-23 (g) [(e)] In this section:
33-24 (1) "Land designated for agricultural [Agricultural]
33-25 use" means land for which an application for appraisal under
33-26 Subchapter C or D, Chapter 23, has been finally approved [the
33-27 meaning assigned by Section 23.51].
34-1 (2) "Costs" includes the amount reasonably spent by
34-2 the purchaser for maintaining, preserving, [the maintenance,
34-3 preservation,] and safekeeping [of] the property, including the
34-4 cost of:
34-5 (A) property insurance;
34-6 (B) repairs or improvements required by a local
34-7 ordinance or building code or by a lease of the property in effect
34-8 on the date of the sale;
34-9 (C) discharging a lien imposed by a municipality
34-10 to secure expenses incurred by the municipality in remedying a
34-11 health or safety hazard on the property;
34-12 (D) dues or assessments for maintenance paid to
34-13 a property owners' association under a recorded restrictive
34-14 covenant to which the property is subject; and
34-15 (E) impact or standby fees imposed under the
34-16 Local Government Code or Water Code and paid to a political
34-17 subdivision.
34-18 (3) "Purchaser" includes a taxing unit to which
34-19 property is bid off under Section 34.01 [34.01(c)].
34-20 (4) "Residence homestead" has the meaning assigned by
34-21 Section 11.13.
34-22 (h) [(f)] The right of redemption does not grant or reserve
34-23 in the former owner of the real property the right to the use or
34-24 possession of the property, or to receive rents, income, or other
34-25 benefits from the property while the right of redemption exists.
34-26 (i) The owner of property who is entitled to redeem the
34-27 property under this section may request that the purchaser of the
35-1 property, or the taxing unit to which the property was bid off,
35-2 provide that owner a written itemization of all amounts spent by
35-3 the purchaser or taxing unit in costs on the property. The owner
35-4 must make the request in writing and send the request to the
35-5 purchaser at the address shown for the purchaser in the purchaser's
35-6 deed for the property, or to the business address of the collector
35-7 for the taxing unit, as applicable. The purchaser or the collector
35-8 shall itemize all amounts spent on the property in costs and
35-9 deliver the itemization in writing to the owner not later than the
35-10 10th day after the date the written request is received. Delivery
35-11 of the itemization to the owner may be made by depositing the
35-12 document in the United States mail, postage prepaid, addressed to
35-13 the owner at the address provided in the owner's written request.
35-14 Only those amounts included in the itemization provided to the
35-15 owner may be allowed as costs for purposes of redemption.
35-16 [(g) In this section, "residence homestead" has the meaning
35-17 assigned by Section 11.13.]
35-18 [(h) In this section, "agricultural use" has the meaning
35-19 assigned by Section 23.51.]
35-20 [(i) In this section, "costs" is defined to include all
35-21 those amounts reasonably expended by a purchaser or taxing unit in
35-22 the maintenance, preservation, and safekeeping of the property,
35-23 including but not limited to:]
35-24 [(1) insurance against fire, flood, and other hazards;]
35-25 [(2) repairs and improvements required by local
35-26 ordinance, building code, or by the terms of any existing lease of
35-27 the property, whether written or oral;]
36-1 [(3) discharge of mowing, cleaning, or demolition
36-2 liens against the property that secure expenses incurred by a
36-3 municipality;]
36-4 [(4) dues, assessments for maintenance, or liens
36-5 provided by recorded restrictive covenants affecting the property
36-6 and payable to a property owner's association; and]
36-7 [(5) standby fees payable to a water district, fresh
36-8 water supply district, or other municipality as authorized by law.]
36-9 SECTION 27. Section 42.031(b), Tax Code, is amended to read
36-10 as follows:
36-11 (b) A taxing unit may not intervene in or in any other
36-12 manner be made a party, whether as defendant or otherwise, to an
36-13 appeal of an order of the appraisal review board determining a
36-14 taxpayer protest under Subchapter C, Chapter 41, if the appeal was
36-15 brought by the property owner.
36-16 SECTION 28. Section 49.231, Water Code, is amended by
36-17 amending Subsections (j)-(l) and adding Subsections (o) and (p) to
36-18 read as follows:
36-19 (j) The board may:
36-20 (1) charge interest, at the rate of one percent a
36-21 month, on a standby fee not paid in a timely manner in accordance
36-22 with the resolution or order imposing the standby fee; [and]
36-23 (2) impose a penalty in connection with a standby fee
36-24 that is not paid in a timely manner in accordance with the
36-25 resolution or order imposing the standby fee; and
36-26 (3) refuse to provide potable water, sanitary sewer,
36-27 or drainage service to the property for which the fee was assessed
37-1 until all delinquent standby fees on the property, [and] interest
37-2 on those fees, and all penalties imposed in connection with the
37-3 delinquent standby fees are fully paid.
37-4 (k) A standby fee imposed under this section is a personal
37-5 obligation of the person owning the undeveloped property on January
37-6 1 of the year for which the fee is assessed. A person is not
37-7 relieved of the obligation on transfer of title to the property.
37-8 On January 1 of each year, a lien attaches to undeveloped property
37-9 to secure payment of any standby fee, interest on the fee, and any
37-10 penalty imposed under this section [and the interest, if any, on
37-11 the fee]. The lien has the same priority as a lien for taxes of
37-12 the district.
37-13 (l) If a standby fee imposed under this section is not paid
37-14 in a timely manner, a district may file suit to foreclose the lien
37-15 securing payment of the fee, [and] interest on the fee, and any
37-16 penalty imposed in connection with the fee or to enforce the
37-17 personal obligation for the fee, [and] interest on the fee, and any
37-18 penalty imposed in connection with the fee [or both]. In [The
37-19 district may recover, in] addition to the fee, [and] interest on
37-20 the fee, and any penalty imposed, the district may recover
37-21 reasonable costs, including attorney's fees, incurred by the
37-22 district in enforcing the lien or obligation not to exceed 20
37-23 percent of the delinquent fee, [and] interest on the fee, and any
37-24 penalty. A suit authorized by this subsection must be filed not
37-25 later than the fourth anniversary of the date the fee became due.
37-26 A fee delinquent for more than four years, [and] interest on the
37-27 fee, and any penalty imposed are considered paid unless a suit is
38-1 filed before the expiration of the four-year period.
38-2 (o) The amount of the penalty authorized by Subsection (j)
38-3 is six percent of the amount of the standby fee for the first
38-4 calendar month the standby fee is delinquent, plus an additional
38-5 one percent of the amount of the fee for each of the subsequent
38-6 four months, or portion of each of those months, the fee is unpaid,
38-7 except that if the fee remains unpaid on the first day of the sixth
38-8 month after the month in which the fee became due, the amount of
38-9 the penalty is 12 percent of the amount of the standby fee.
38-10 (p) This subsection applies only to the board of a district
38-11 that has entered into a contract with an attorney for the
38-12 collection of unpaid standby fees. In addition to the penalty
38-13 authorized by Subsection (j) and in accordance with the resolution
38-14 or order imposing a standby fee, the board may provide that a
38-15 standby fee that is not paid in a timely manner is subject to a
38-16 penalty to defray costs of collection of the unpaid standby fee.
38-17 The amount of the additional penalty under this subsection may not
38-18 exceed 15 percent of the amount of the standby fee, interest on the
38-19 fee, and any penalty imposed in connection with the fee. A penalty
38-20 under this subsection is incurred on the date set by the board.
38-21 The penalty may be imposed only if the district or the attorney
38-22 with whom the district has contracted notifies the property owner
38-23 of the penalty and the amount of the penalty at least 30 but not
38-24 more than 60 days before the date the penalty is incurred. A
38-25 district that imposes the additional penalty under this subsection
38-26 may not collect both the additional penalty and the attorney's fees
38-27 provided by Subsection (l).
39-1 SECTION 29. Chapter I, Texas Probate Code, is amended by
39-2 adding Section 5C to read as follows:
39-3 Sec. 5C. ACTIONS TO COLLECT DELINQUENT PROPERTY TAXES. (a)
39-4 This section applies only to a decedent's estate that:
39-5 (1) is being administered in a pending probate
39-6 proceeding; and
39-7 (2) owns or claims an interest in property against
39-8 which a taxing unit has imposed ad valorem taxes that are
39-9 delinquent.
39-10 (b) Notwithstanding any provision of this code to the
39-11 contrary, if the probate proceedings are pending in a foreign
39-12 jurisdiction or in a county other than the county in which the
39-13 taxes were imposed, a suit to foreclose the lien securing payment
39-14 of the taxes or to enforce personal liability for the taxes must be
39-15 brought under Section 33.41, Tax Code, in a court of competent
39-16 jurisdiction in the county in which the taxes were imposed.
39-17 (c) If the probate proceedings are pending in the county in
39-18 which the taxes were imposed, the taxing unit:
39-19 (1) must file a claim for the delinquent taxes in the
39-20 court in which the probate proceedings are pending in the same
39-21 manner as other claims against the estate or property that is part
39-22 of the estate; and
39-23 (2) may not bring a suit in any other court to
39-24 foreclose the lien securing payment of the taxes or to enforce
39-25 personal liability for the delinquent taxes before the fourth
39-26 anniversary of the date the application for the probate proceedings
39-27 was filed.
40-1 (d) To foreclose the lien securing payment of the taxes for
40-2 the delinquent taxes, the taxing unit must bring a suit under
40-3 Section 33.41, Tax Code, in a court of competent jurisdiction for
40-4 the county in which the taxes were imposed if:
40-5 (1) the probate proceedings have been pending in that
40-6 county for more than four years; and
40-7 (2) the taxing unit did not file a claim against the
40-8 estate or property that is part of the estate or the probate court
40-9 did not authorize payment of the taxes.
40-10 (e) In a suit brought under Subsection (d), the taxing unit:
40-11 (1) shall make the personal representative of the
40-12 decedent's estate a party to the suit; and
40-13 (2) may not seek to enforce personal liability for the
40-14 taxes against the estate of the decedent.
40-15 SECTION 30. Section 317(c), Texas Probate Code, is amended
40-16 to read as follows:
40-17 (c) Provisions Not Applicable to Certain Claims. The
40-18 foregoing provisions relative to the presentment of claims shall
40-19 not be so construed as to apply to a [the] claim:
40-20 (1) of any heir, devisee, or legatee who claims in
40-21 such capacity;
40-22 (2) [, or to any claim] that accrues against the
40-23 estate after the granting of letters for which the representative
40-24 of the estate has contracted; or
40-25 (3) for delinquent ad valorem taxes against a
40-26 decedent's estate that is being administered in probate in:
40-27 (A) a county other than the county in which the
41-1 taxes were imposed; or
41-2 (B) the same county in which the taxes were
41-3 imposed, if the probate proceedings have been pending for more than
41-4 four years.
41-5 SECTION 31. Section 801, Texas Probate Code, is amended to
41-6 read as follows:
41-7 Sec. 801. PRESENTMENT OF CLAIMS A PREREQUISITE FOR JUDGMENT.
41-8 (a) A judgment may not be rendered in favor of a claimant on any
41-9 claim for money that has not been legally presented to the guardian
41-10 of the estate of the ward and rejected by the guardian or by the
41-11 court, in whole or in part.
41-12 (b) Subsection (a) does not apply to a claim for delinquent
41-13 ad valorem taxes against the estate of a ward that is being
41-14 administered in probate in a county other than the county in which
41-15 the taxes were imposed.
41-16 SECTION 32. Article 2.07, Texas Non-Profit Corporation Act
41-17 (Article 1396-2.07, Vernon's Texas Civil Statutes), is amended by
41-18 adding Section D to read as follows:
41-19 D. Service of process, notice, or demand required or
41-20 permitted by law to be served by a political subdivision of this
41-21 state or by a person, including another political subdivision or an
41-22 attorney, acting on behalf of a political subdivision in connection
41-23 with the collection of a delinquent ad valorem tax may be served on
41-24 a corporation whose corporate privileges are forfeited under
41-25 Section 171.251, Tax Code, or is involuntarily dissolved under
41-26 Article 7.01 of this Act by delivering the process, notice, or
41-27 demand to any officer or director of the corporation, as listed in
42-1 the most recent records of the secretary of state. If the officers
42-2 or directors of the corporation are unknown or cannot be found,
42-3 service on the corporation may be made in the same manner as
42-4 service is made on unknown shareholders under law. Notwithstanding
42-5 any disability or reinstatement of a corporation, service of
42-6 process under this section is sufficient for a judgment against the
42-7 corporation or a judgment in rem against any property to which the
42-8 corporation holds title.
42-9 SECTION 33. Article 2.11, Texas Business Corporation Act, is
42-10 amended by adding Section D to read as follows:
42-11 D. Service of process, notice, or demand required or
42-12 permitted by law to be served by a political subdivision of this
42-13 state or by a person, including another political subdivision or an
42-14 attorney, acting on behalf of a political subdivision in connection
42-15 with the collection of a delinquent ad valorem tax may be served on
42-16 a corporation whose corporate privileges are forfeited under
42-17 Section 171.251, Tax Code, or is involuntarily dissolved under
42-18 Article 7.01 of this Act by delivering the process, notice, or
42-19 demand to any officer or director of the corporation, as listed in
42-20 the most recent records of the secretary of state. If the officers
42-21 or directors of the corporation are unknown or cannot be found,
42-22 service on the corporation may be made in the same manner as
42-23 service is made on unknown shareholders under law. Notwithstanding
42-24 any disability or reinstatement of a corporation, service of
42-25 process under this section is sufficient for a judgment against the
42-26 corporation or a judgment in rem against any property to which the
42-27 corporation holds title.
43-1 SECTION 34. Article 8.10, Texas Business Corporation Act, is
43-2 amended by adding Section E to read as follows:
43-3 E. Service of process, notice, or demand required or
43-4 permitted by law to be served by a political subdivision of this
43-5 state or by a person, including another political subdivision or an
43-6 attorney, acting on behalf of a political subdivision in connection
43-7 with the collection of a delinquent ad valorem tax may be served on
43-8 a foreign corporation whose privileges to transact business in this
43-9 state are forfeited under Section 171.251, Tax Code, or whose
43-10 certificate of authority is revoked under Article 8.16 of this Act
43-11 by delivering the process, notice, or demand to any officer or
43-12 director of the foreign corporation, as listed in the most recent
43-13 records of the secretary of state. If the officers or directors of
43-14 the foreign corporation are unknown or cannot be found, service on
43-15 the foreign corporation may be made in the same manner as service
43-16 is made on unknown shareholders under law. Notwithstanding any
43-17 disability or reinstatement of a foreign corporation, service of
43-18 process under this section is sufficient for a judgment against the
43-19 foreign corporation or a judgment in rem against any property to
43-20 which the foreign corporation holds title.
43-21 SECTION 35. The following statutes are repealed:
43-22 (1) Section 33.51, Tax Code, as amended by Chapter
43-23 914, Acts of the 75th Legislature, Regular Session, 1997; and
43-24 (2) Section 34.05(g), Tax Code, as amended by Chapters
43-25 712 and 906, Acts of the 75th Legislature, Regular Session, 1997.
43-26 SECTION 36. (a) Except as otherwise provided by Subsection
43-27 (b) of this section, this Act takes effect September 1, 1999.
44-1 (b) Sections 1, 2, 3, 4, 6, 7, 9, and 28 of this Act take
44-2 effect January 1, 2000.
44-3 SECTION 37. The change in law made by Section 4 of this Act
44-4 applies to all liens for which notice may be filed under Section
44-5 32.015, Tax Code, with the Texas Department of Housing and
44-6 Community Affairs on or after January 1, 2000.
44-7 SECTION 38. The change in law made by Section 9 of this Act
44-8 applies to the notice required to be given by Section 33.04(b), Tax
44-9 Code, in and after 2000. Penalties and interest on a delinquent
44-10 tax are not canceled under Section 33.04, Tax Code, for failure to
44-11 deliver a notice required by Section 33.04(b) of that code as it
44-12 existed immediately before the effective date of this Act if the
44-13 notice is not required by Section 33.04(b) of that code as amended
44-14 by this Act.
44-15 SECTION 39. The changes in law made by Sections 14 and 15
44-16 of this Act apply to all tax suits, regardless of when commenced,
44-17 in which judgment is entered on or after September 1, 1999.
44-18 SECTION 40. The changes in law made by Sections 16, 17, and
44-19 19 of this Act apply to all tax sales conducted on or after
44-20 September 1, 1999, whether the judgment on which the sale is based
44-21 was entered before, on, or after that date. For purposes of this
44-22 section, the date on which a tax sale was conducted is considered
44-23 to be the first Tuesday of the month in which the public auction
44-24 occurred.
44-25 SECTION 41. The changes in law made by Section 20 of this
44-26 Act apply to the disposition of excess proceeds of a property tax
44-27 foreclosure or summary sale paid into court regardless of the date
45-1 on which the sale occurred or the date on which the proceeds were
45-2 paid into the court.
45-3 SECTION 42. The changes in law made by Sections 22 and 24 of
45-4 this Act apply to any resale of property conducted on or after
45-5 September 1, 1999, based on a judgment signed before, on, or after
45-6 that date. For purposes of this section, the date on which a
45-7 resale was conducted is considered to be the date on which the
45-8 grantor's acknowledgment was taken or, if multiple grantors, the
45-9 latest date of acknowledgment of the various grantors.
45-10 SECTION 43. The change in law made by Section 25 of this Act
45-11 applies to any tax resale of property based on an original tax sale
45-12 conducted before, on, or after September 1, 1999.
45-13 SECTION 44. The change in law made by Section 26 of this Act
45-14 applies to redemption of real property sold at a tax sale conducted
45-15 on or after September 1, 1999, whether the judgment on which the
45-16 sale is based was entered before, on, or after September 1, 1999.
45-17 Redemption of real property sold at a tax sale conducted before
45-18 September 1, 1999, is governed by the law in effect when the sale
45-19 occurred, and the former law is continued in effect for that
45-20 purpose. For purposes of this section, the date on which a tax
45-21 sale was conducted is considered to be the first Tuesday of the
45-22 month in which the public auction occurred.
45-23 SECTION 45. The changes in law made by Sections 29, 30, and
45-24 31 of this Act apply to the estates of all decedents, regardless of
45-25 the date of death, and to the estates of all wards, regardless of
45-26 the date the application for appointment of a guardian was filed,
45-27 and to all causes of action pending on September 1, 1999, or
46-1 brought after that date.
46-2 SECTION 46. The changes in law made by Sections 32, 33, and
46-3 34 apply to all actions pending on September 1, 1999, and to any
46-4 actions brought after that date.
46-5 SECTION 47. The importance of this legislation and the
46-6 crowded condition of the calendars in both houses create an
46-7 emergency and an imperative public necessity that the
46-8 constitutional rule requiring bills to be read on three several
46-9 days in each house be suspended, and this rule is hereby suspended.