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 11.13(h), Tax Code, is amended to read as
1-6 follows:
1-7 (h) Joint, [or] community, or successive owners may not each
1-8 receive the same exemption provided by or pursuant to this section
1-9 for the same residence homestead in the same year. An eligible
1-10 disabled person who is 65 or older may not receive both a disabled
1-11 and an elderly residence homestead exemption but may choose either.
1-12 A person may not receive an exemption under this section for more
1-13 than one residence homestead in the same year.
1-14 SECTION 2. Sections 11.26(a) and (j), Tax Code, are amended
1-15 to read as follows:
1-16 (a) The tax officials shall appraise the property to which
1-17 this section applies and calculate taxes as on other property, but
1-18 if the tax so calculated exceeds the limitation imposed by this
1-19 section, the tax imposed is the amount of the tax as limited by
1-20 this section, except as otherwise provided by this section. A
1-21 school district may not increase the total annual amount of ad
1-22 valorem tax it imposes on the residence homestead of an individual
1-23 65 years or older above the amount of the tax it imposed in the
1-24 first tax year in which the individual qualified that residence
2-1 homestead for the exemption provided by Section 11.13(c) for an
2-2 individual 65 years of age or older. [If the individual qualified
2-3 that residence homestead for the exemption after the beginning of
2-4 that first year, the maximum amount of taxes that a school district
2-5 may impose on that residence homestead in a subsequent year is
2-6 determined as provided by Section 26.112 as if the individual
2-7 qualified that residence homestead for the exemption for that
2-8 entire first year, except as provided by Subsection (b).] If the
2-9 individual qualified that residence homestead for the exemption
2-10 after the beginning of that first year and the residence homestead
2-11 remains eligible for the exemption for the next year, and if the
2-12 school district taxes imposed on the residence homestead in the
2-13 next year are less than the amount of taxes imposed in that first
2-14 year, a school district may not subsequently increase the total
2-15 annual amount of ad valorem taxes it imposes on the residence
2-16 homestead above the amount it imposed in the year immediately
2-17 following the first year for which the individual qualified that
2-18 residence homestead for the exemption, except as provided by
2-19 Subsection (b). If the first tax year the individual qualified the
2-20 residence homestead for the exemption provided by Section 11.13(c)
2-21 was a tax year before the 1997 tax year, the amount of the
2-22 limitation provided by this section is the amount of tax the school
2-23 district imposed for the 1996 tax year less an amount equal to the
2-24 amount determined by multiplying $10,000 times the tax rate of the
2-25 school district for the 1997 tax year, plus any 1997 tax
2-26 attributable to improvements made in 1996, other than improvements
2-27 made to comply with governmental regulations or repairs.
3-1 (j) If an individual who qualifies for an exemption provided
3-2 by Section 11.13(c) for an individual 65 years of age or older dies
3-3 in the first year in which the individual qualified for the
3-4 exemption and the individual first qualified for the exemption
3-5 after the beginning of that year, except as provided by Subsection
3-6 (k), the amount to which the surviving spouse's school district
3-7 taxes are limited under Subsection (i) is the amount of school
3-8 district taxes imposed on the residence homestead in that year
3-9 determined [calculated under Section 26.112] as if the individual
3-10 qualifying for the exemption had lived for the entire year.
3-11 SECTION 3. Section 11.42, Tax Code, is amended to read as
3-12 follows:
3-13 Sec. 11.42. EXEMPTION QUALIFICATION DATE. (a) Except as
3-14 provided by Subsections [Subsection] (b) and (c) and by Sections
3-15 11.421, 11.422, 11.434, 11.435, and 11.436, eligibility for and
3-16 amount of an exemption authorized by this chapter for any tax year
3-17 are determined by a claimant's qualifications on January 1. A
3-18 person who does not qualify for an exemption on January 1 of any
3-19 year may not receive the exemption that year.
3-20 (b) An exemption authorized by Section 11.11 [or by Section
3-21 11.13(c) or (d) for an individual 65 years of age or older] is
3-22 effective immediately on qualification for the exemption.
3-23 (c) An exemption authorized by Section 11.13(c) or (d) for
3-24 an individual 65 years of age or older is effective as of January 1
3-25 of the tax year in which the person qualifies for the exemption and
3-26 applies to the entire tax year.
3-27 (d) A person who acquires property after January 1 of a tax
4-1 year may receive an exemption authorized by Section 11.17, 11.18,
4-2 11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of
4-3 that tax year immediately on qualification for the exemption.
4-4 SECTION 4. Section 11.43(d), Tax Code, as amended by
4-5 Chapters 1039, 1059, and 1155, Acts of the 75th Legislature,
4-6 Regular Session, 1997, is reenacted and amended to read as follows:
4-7 (d) To receive an exemption the eligibility for which is
4-8 determined by the claimant's qualifications on January 1 of the tax
4-9 year, a person required to claim an exemption must file a completed
4-10 exemption application form before May 1 and must furnish the
4-11 information required by the form. A person who after January 1 of
4-12 a tax year acquires property that qualifies for an exemption
4-13 covered by Section 11.42(d) [11.42(c)] must apply for the exemption
4-14 for the applicable portion of that tax year before the first
4-15 anniversary of the date the person acquires the property. For good
4-16 cause shown the chief appraiser may extend the deadline for filing
4-17 an exemption application by written order for a single period not
4-18 to exceed 60 days.
4-19 SECTION 5. Section 11.43(k), Tax Code, is amended to read as
4-20 follows:
4-21 (k) A person who qualifies for the exemption authorized by
4-22 Section 11.13(c) or (d) for an individual 65 years of age or older
4-23 [for a portion of a tax year] must apply for the exemption no later
4-24 than the first anniversary of the date the person qualified for the
4-25 exemption.
4-26 SECTION 6. Section 25.06, Tax Code, is amended to read as
4-27 follows:
5-1 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
5-2 INTEREST. (a) Except as provided by Section 25.07 [of this code],
5-3 property encumbered by a leasehold or other possessory interest or
5-4 by a mortgage, deed of trust, or other interest securing payment or
5-5 performance of an obligation shall be listed in the name of the
5-6 owner of the property so encumbered.
5-7 (b) Except as otherwise directed in writing under Section
5-8 1.111(f), real property that is subject to an installment contract
5-9 of sale shall be listed in the name of the seller if the
5-10 installment contract is not filed of record in the real property
5-11 records of the county.
5-12 SECTION 7. Chapter 21, Tax Code, is amended by adding
5-13 Section 21.055 to read as follows:
5-14 Sec. 21.055. BUSINESS AIRCRAFT. (a) If an aircraft is used
5-15 for a business purpose of the owner, is taxable by a taxing unit,
5-16 and is used continually outside this state, whether regularly or
5-17 irregularly, the appraisal office shall allocate to this state the
5-18 portion of the fair market value of the aircraft that fairly
5-19 reflects its use in this state. The appraisal office shall not
5-20 allocate to this state the portion of the total market value of the
5-21 aircraft that fairly reflects its use beyond the boundaries of this
5-22 state.
5-23 (b) The allocable portion of the total fair market value of
5-24 an aircraft described by Subsection (a) is presumed to be the fair
5-25 market value of the aircraft multiplied by a fraction, the
5-26 numerator of which is the number of departures by the aircraft from
5-27 a location in this state during the year preceding the tax year and
6-1 the denominator of which is the total number of departures by the
6-2 aircraft from all locations during the year preceding the tax year.
6-3 (c) This section does not apply to a commercial aircraft as
6-4 defined by Section 21.05.
6-5 SECTION 8. Section 26.112, Tax Code, is amended to read as
6-6 follows:
6-7 Sec. 26.112. CALCULATION OF TAXES ON [PRORATING
6-8 TAXES--QUALIFICATION BY ELDERLY PERSON FOR 65 OR OVER] RESIDENCE
6-9 HOMESTEAD OF ELDERLY PERSON [EXEMPTION]. (a) If at any time
6-10 during a tax year property is owned by an individual who qualifies
6-11 for an [the] exemption under Section 11.13(c) or (d) for an
6-12 individual 65 years of age or older [after the beginning of a tax
6-13 year], the amount of the tax [taxes] due on the property [residence
6-14 homestead of the individual] for the tax year is calculated as if
6-15 the person qualified for the exemption on January 1 and continued
6-16 to qualify for the exemption for the remainder of the tax year.
6-17 (b) If property is the residence homestead of more than one
6-18 individual during a tax year and any of those individuals qualify
6-19 for an exemption under Section 11.13(c) or (d) for an individual 65
6-20 years of age or older with respect to the property, the amount of
6-21 the tax due on the property for the tax year is calculated as if
6-22 that individual owned the property for the entire tax year.
6-23 (c) If a person qualifies for an exemption under Section
6-24 11.13(c) or (d) for an individual 65 years of age or older with
6-25 respect to the property after the amount of the tax due on the
6-26 property is calculated and the effect of the qualification is to
6-27 reduce the amount of the tax due on the property, the assessor for
7-1 each taxing unit shall recalculate the amount of the tax due on the
7-2 property and correct the tax roll. If the tax bill has been mailed
7-3 and the tax on the property has not been paid, the assessor shall
7-4 mail a corrected tax bill to the person in whose name the property
7-5 is listed on the tax roll or to the person's authorized agent. If
7-6 the tax on the property has been paid, the tax collector for the
7-7 taxing unit shall refund to the person who paid the tax the amount
7-8 by which the payment exceeded the tax due. [by:]
7-9 [(1) subtracting:]
7-10 [(A) the amount of the taxes that otherwise
7-11 would be imposed on the residence homestead for the entire year had
7-12 the individual qualified for the residence homestead exemption on
7-13 January 1; from]
7-14 [(B) the amount of the taxes that otherwise
7-15 would be imposed on the residence homestead for the entire year had
7-16 the individual not qualified for the residence homestead exemption;]
7-17 [(2) multiplying the remainder determined under
7-18 Subdivision (1) by a fraction, the denominator of which is 365 and
7-19 the numerator of which is the number of days that elapsed prior to
7-20 the date that the individual qualified for the exemption; and]
7-21 [(3) adding the product determined under Subdivision
7-22 (2) and the amount described by Subdivision (1)(A).]
7-23 SECTION 9. Section 26.113(a), Tax Code, is amended to read
7-24 as follows:
7-25 (a) If a person acquires taxable property that qualifies for
7-26 and is granted an exemption covered by Section 11.42(d) [11.42(c)]
7-27 for a portion of the year in which the property was acquired, the
8-1 amount of tax due on the property for that year is computed by
8-2 multiplying the amount of taxes imposed on the property for the
8-3 entire year as provided by Section 26.09 by a fraction, the
8-4 denominator of which is 365 and the numerator of which is the
8-5 number of days in that year before the date the property qualified
8-6 for the exemption.
8-7 SECTION 10. Chapter 31, Tax Code, is amended by adding
8-8 Section 31.081 to read as follows:
8-9 Sec. 31.081. PROPERTY TAX WITHHOLDING ON PURCHASE OF
8-10 BUSINESS OR INVENTORY. (a) This section applies only to a person
8-11 who purchases a business, an interest in a business, or the
8-12 inventory of a business from a person who is liable under this
8-13 title for the payment of taxes imposed on personal property used in
8-14 the operation of that business.
8-15 (b) The purchaser shall withhold from the purchase price an
8-16 amount sufficient to pay all of the taxes imposed on the personal
8-17 property of the business, plus any penalties and interest incurred,
8-18 until the seller provides the purchaser with:
8-19 (1) a receipt issued by each appropriate collector
8-20 showing that the taxes due the applicable taxing unit, plus any
8-21 penalties and interest, have been paid; or
8-22 (2) a tax certificate issued under Section 31.08
8-23 stating that no taxes, penalties, or interest is due the applicable
8-24 taxing unit.
8-25 (c) A purchaser who fails to withhold the amount required by
8-26 this section is liable for that amount to the applicable taxing
8-27 units to the extent of the value of the purchase price, including
9-1 the value of a promissory note given in consideration of the sale
9-2 to the extent of the note's market value on the effective date of
9-3 the purchase, regardless of whether the purchaser has been required
9-4 to make any payments on that note.
9-5 (d) The purchaser may request each appropriate collector to
9-6 issue a tax certificate under Section 31.08 or a statement of the
9-7 amount of the taxes, penalties, and interest that are due to each
9-8 taxing unit for which the collector collects taxes. The collector
9-9 shall issue the certificate or statement before the 10th day after
9-10 the date the request is made. If a collector does not timely
9-11 provide or mail the certificate or statement to the purchaser, the
9-12 purchaser is released from the duties and liabilities imposed by
9-13 Subsections (b) and (c) in connection with taxes, penalties, and
9-14 interest due the applicable taxing unit.
9-15 (e) An action to enforce a duty or liability imposed on a
9-16 purchaser by Subsection (b) or (c) must be brought before the
9-17 fourth anniversary of the effective date of the purchase. An
9-18 action to enforce the purchaser's duty or liability is subject to a
9-19 limitation plea by the purchaser as to any taxes that have been
9-20 delinquent at least four years as of the date the collector issues
9-21 the statement under Subsection (d).
9-22 (f) This section does not release a person who sells a
9-23 business or the inventory of a business from any personal liability
9-24 imposed on the person for the payment of taxes imposed on the
9-25 personal property of the business or for penalties or interest on
9-26 those taxes.
9-27 (g) For purposes of this section:
10-1 (1) a person is considered to have purchased a
10-2 business if the person purchases the name of the business or the
10-3 goodwill associated with the business; and
10-4 (2) a person is considered to have purchased the
10-5 inventory of a business if the person purchases inventory of a
10-6 business, the value of which is at least 50 percent of the value of
10-7 the total inventory of the business on the date of the purchase.
10-8 SECTION 11. Section 32.01, Tax Code, is amended by
10-9 redesignating existing Subsection (c) as Subsection (d) and by
10-10 adding a new Subsection (c) to read as follows:
10-11 (c) If an owner's real property is described with certainty
10-12 by metes and bounds in one or more instruments of conveyance and
10-13 part of that property is the owner's residence homestead taxed
10-14 separately and apart from the remainder of the property, each of
10-15 the liens under this section that secures the taxes imposed on that
10-16 homestead and on the remainder of that property extends in solido
10-17 to all the real property described in the instrument or instruments
10-18 of conveyance, unless the homestead is identified as a separate
10-19 parcel and is separately described in the conveyance or another
10-20 instrument recorded in the real property records.
10-21 (d) [(c)] The lien under this section is perfected on
10-22 attachment and, except as provided by Section 32.03(b), perfection
10-23 requires no further action by the taxing unit.
10-24 SECTION 12. Section 32.015(b), Tax Code, is amended to read
10-25 as follows:
10-26 (b) The collector may simultaneously file notice of tax
10-27 liens of all the taxing units served by the collector. However,
11-1 notice of any lien for taxes for the preceding [prior] calendar
11-2 year must be filed with the department before [prior to] September
11-3 1 of the following year. Any lien for which the notice is not
11-4 filed by that [such] date is unenforceable against:
11-5 (1) a bona fide purchaser for value who is without
11-6 notice or actual knowledge of the lien or the delinquent taxes for
11-7 which the tax lien exists; or
11-8 (2) the holder of a lien recorded on the manufactured
11-9 home document of title [extinguished and is not enforceable].
11-10 SECTION 13. Section 32.05(c), Tax Code, is amended to read
11-11 as follows:
11-12 (c) A tax lien provided by this chapter is inferior to a
11-13 claim:
11-14 (1) [claims] for any survivor's allowance, funeral
11-15 expenses, or expenses of the last illness of a decedent made
11-16 against the estate of a decedent as provided by law;
11-17 (2) under a[, or] recorded restrictive covenant
11-18 [covenants] running with the land, other than a restrictive
11-19 covenant in favor of a property owners' association or homeowners'
11-20 association recorded before January 1 of the year the tax lien
11-21 arose; or
11-22 (3) under a valid easement [easements] of record
11-23 [which were] recorded before [prior to] January 1 of the year the
11-24 tax lien arose.
11-25 SECTION 14. Section 32.07(e), Tax Code, is amended to read
11-26 as follows:
11-27 (e) With respect to an ad valorem tax or other money subject
12-1 to the provisions of Subsection (d), an individual who controls or
12-2 supervises the collection of tax or money from another person, or
12-3 an individual who controls or supervises the accounting for and
12-4 paying over of the tax or money, and who wilfully fails to pay or
12-5 cause to be paid the tax or money is liable as a responsible
12-6 individual for an amount equal to the tax or money, plus all
12-7 interest, penalties, and costs, not paid or caused to be paid. The
12-8 liability imposed by this subsection is in addition to any other
12-9 penalty provided by law. The dissolution of a corporation,
12-10 association, limited liability company, or partnership does not
12-11 affect a responsible individual's liability under this subsection.
12-12 SECTION 15. Section 32.07, Tax Code, is amended by adding
12-13 Subsection (h) to read as follows:
12-14 (h) For purposes of Subsection (a), a person is considered
12-15 to be an owner of property subject to an installment contract of
12-16 sale if the person is:
12-17 (1) the seller of the property; or
12-18 (2) a purchaser of the property who has the duty under
12-19 the installment contract to pay taxes on the property.
12-20 SECTION 16. Section 33.04, Tax Code, is amended to read as
12-21 follows:
12-22 Sec. 33.04. NOTICE OF DELINQUENCY. (a) At least once each
12-23 year the collector for a taxing unit shall deliver a notice of
12-24 delinquency to each person whose name appears on the current
12-25 delinquent tax roll. However, the notice need not be delivered if:
12-26 (1) a bill for the tax was not mailed under [pursuant
12-27 to the authorization provided by] Section 31.01(f) [of this code];
13-1 or
13-2 (2) the collector does not know and by exercising
13-3 reasonable diligence cannot determine the delinquent taxpayer's
13-4 name and address.
13-5 (b) In addition to the notice required by Subsection (a)
13-6 [of this section], the [tax] collector for each taxing unit in each
13-7 year divisible by five shall deliver by mail a written notice of
13-8 delinquency to:
13-9 (1) each person whose name and mailing address are
13-10 listed on the most recent certified appraisal roll, if the taxes on
13-11 the property of that person are shown on the collector's records as
13-12 having [who owes a tax that has] been delinquent more than one
13-13 year; and
13-14 (2) each person who owes a tax on personal property or
13-15 an interest in a mineral estate that has been delinquent more than
13-16 one year, if that property or mineral estate is not listed on the
13-17 most recent certified appraisal roll under that person's name but
13-18 that person's [whose] name and mailing address are known to the
13-19 collector [or can be determined by the exercise of reasonable
13-20 diligence].
13-21 (c) The collector [He] shall state in the notice required by
13-22 Subsection (b) the amount of the delinquent tax, penalties, and
13-23 interest due, the description of the property on which the tax was
13-24 imposed, and the year for which the tax is delinquent. Each notice
13-25 required by Subsection (b) to be delivered to [If] the same person
13-26 [owes delinquent taxes] for more than one year or on more than one
13-27 property[, the collector] may be included [include all the
14-1 delinquent taxes the person owes] in a single notice.
14-2 (d) In a suit brought against a person entitled to receive
14-3 notice under Subsection (b) for the collection of penalties
14-4 [(c) Penalties] and interest on a tax delinquent more than five
14-5 years or a multiple of five years, it is an affirmative defense
14-6 available to the person that [are cancelled and may not be
14-7 collected if] the collector did [has] not deliver [delivered] the
14-8 notice required by Subsection (b) [of this section in each year
14-9 that is divisible by five following the date on which the tax first
14-10 became delinquent for one year].
14-11 (e) Notwithstanding Subsection (d), interest and penalties
14-12 on a tax are reinstated and shall be collected by the collector if,
14-13 subsequent to the collector's failure to deliver the notice
14-14 required by Subsection (b), the collector delivers the notice in
14-15 any subsequent year divisible by five. The interest and penalties
14-16 on the tax are reinstated prospectively and begin to accrue at the
14-17 rates provided by Section 33.01 on the first day of the first month
14-18 that begins at least 21 days after the date the collector delivers
14-19 the subsequent notice.
14-20 (f) A notice under this section is presumed to be delivered
14-21 when it is deposited in regular first-class mail, postage prepaid,
14-22 and addressed to the appropriate person under Subsection (b).
14-23 Notwithstanding Section 1.07, the presumption of delivery under
14-24 this section may not be rebutted with evidence of failure to
14-25 receive the notice.
14-26 SECTION 17. Section 33.07, Tax Code, is amended to read as
14-27 follows:
15-1 Sec. 33.07. Additional Penalty for Collection Costs FOR
15-2 TAXES DUE BEFORE JUNE 1. (a) A taxing unit or appraisal district
15-3 may provide, in the manner required by law for official action by
15-4 the body, that taxes that become delinquent on or after February 1
15-5 of a year but not later than May 1 of that year and that remain
15-6 delinquent on July 1 of the year in which they become delinquent
15-7 incur an additional penalty to defray costs of collection, if the
15-8 unit or district or another unit that collects taxes for the unit
15-9 has contracted with an attorney pursuant to Section 6.30 of this
15-10 code. The amount of the penalty may not exceed 15 percent of the
15-11 amount of taxes, penalty, and interest due.
15-12 (b) A tax lien attaches to the property on which the tax is
15-13 imposed to secure payment of the penalty.
15-14 (c) If a penalty is imposed pursuant to this section, a
15-15 taxing unit may not recover attorney's fees in a suit to collect
15-16 delinquent taxes subject to the penalty.
15-17 (d) If a taxing unit or appraisal district provides for a
15-18 penalty under this section, the collector shall deliver a notice of
15-19 delinquency and of the penalty to the property owner at least 30
15-20 and not more than 60 days before July 1.
15-21 SECTION 18. Subchapter A, Chapter 33, Tax Code, is amended
15-22 by adding Section 33.08 to read as follows:
15-23 Sec. 33.08. ADDITIONAL PENALTY FOR COLLECTION COSTS FOR
15-24 TAXES DUE ON OR AFTER JUNE 1. (a) This section applies to a
15-25 taxing unit or appraisal district only if:
15-26 (1) the governing body of the taxing unit or appraisal
15-27 district has imposed the additional penalty for collection costs
16-1 under Section 33.07; and
16-2 (2) the taxing unit or appraisal district, or another
16-3 taxing unit that collects taxes for the unit, has entered into a
16-4 contract with an attorney under Section 6.30 for the collection of
16-5 the unit's delinquent taxes.
16-6 (b) The governing body of the taxing unit or appraisal
16-7 district, in the manner required by law for official action, may
16-8 provide that taxes that become delinquent on or after June 1 under
16-9 Section 31.03, 31.031, 31.032, or 31.04 incur an additional penalty
16-10 to defray costs of collection. The amount of the penalty may not
16-11 exceed 15 percent of the amount of taxes, penalty, and interest
16-12 due.
16-13 (c) After the taxes become delinquent, the collector for a
16-14 taxing unit or appraisal district that has provided for the
16-15 additional penalty under this section shall send a notice of the
16-16 delinquency and the penalty to the property owner. The penalty is
16-17 incurred on the first day of the first month that begins at least
16-18 21 days after the date the notice is sent.
16-19 (d) A tax lien attaches to the property on which the tax is
16-20 imposed to secure payment of the additional penalty.
16-21 (e) A taxing unit or appraisal district that imposes the
16-22 additional penalty under this section may not recover attorney's
16-23 fees in a suit to collect delinquent taxes subject to the penalty.
16-24 SECTION 19. Section 33.43(a), Tax Code, is amended to read
16-25 as follows:
16-26 (a) A petition initiating a suit to collect a delinquent
16-27 property tax is sufficient if it alleges that:
17-1 (1) the taxing unit is legally constituted and
17-2 authorized to impose and collect ad valorem taxes on property;
17-3 (2) tax in a stated amount was legally imposed on each
17-4 separately described property for each year specified and on each
17-5 person named if known who owned the property on January 1 of the
17-6 year for which the tax was imposed;
17-7 (3) the tax was imposed in the county in which the
17-8 suit is filed;
17-9 (4) the tax is delinquent;
17-10 (5) penalties, interest, and costs authorized by law
17-11 in a stated amount for each separately assessed property are due;
17-12 (6) the taxing unit is entitled to recover [taxes
17-13 imposed on the property for the current tax year and each
17-14 subsequent tax year until the property is sold under Section 34.01
17-15 or 34.015, as applicable, prorated to the date of the sale, and]
17-16 each penalty that is incurred and all interest that accrues on
17-17 delinquent taxes imposed on the property from the date of the
17-18 judgment to the date of the sale under Section 34.01 or 34.015, as
17-19 applicable, if the suit seeks to foreclose a tax lien;
17-20 (7) the person sued owned the property on January 1 of
17-21 the year for which the tax was imposed if the suit seeks to enforce
17-22 personal liability;
17-23 (8) the person sued owns the property when the suit is
17-24 filed if the suit seeks to foreclose a tax lien;
17-25 (9) the taxing unit asserts a lien on each separately
17-26 described property to secure the payment of all taxes, penalties,
17-27 interest, and costs due if the suit seeks to foreclose a tax lien;
18-1 (10) all things required by law to be done have been
18-2 done properly by the appropriate officials; and
18-3 (11) the attorney signing the petition is legally
18-4 authorized to prosecute the suit on behalf of the taxing unit.
18-5 SECTION 20. Section 33.47(a), Tax Code, is amended to read
18-6 as follows:
18-7 (a) In a suit to collect a delinquent tax, the taxing unit's
18-8 current tax roll and delinquent tax roll or certified copies of the
18-9 entries showing the property and the amount of the tax and
18-10 penalties imposed and interest accrued constitute prima facie
18-11 evidence that each person charged with a duty relating to the
18-12 imposition of the tax has complied with all requirements of law and
18-13 that the amount of tax alleged to be delinquent against the
18-14 property and the amount of penalties and interest due on that tax
18-15 as listed are the correct amounts [is the correct amount].
18-16 SECTION 21. Section 33.50, Tax Code, is amended by adding
18-17 Subsection (c) to read as follows:
18-18 (c) The order of sale shall also specify that the property
18-19 may not be sold to a person owning an interest in the property or
18-20 to a person who is a party to the suit other than a taxing unit
18-21 unless:
18-22 (1) that person is the highest bidder at the tax sale;
18-23 and
18-24 (2) the amount bid by that person is equal to or
18-25 greater than the aggregate amount of the judgments against the
18-26 property, including all costs of suit and sale.
18-27 SECTION 22. Section 33.52, Tax Code, as amended by Chapters
19-1 906, 981, and 1111, Acts of the 75th Legislature, Regular Session,
19-2 1997, is reenacted and amended to read as follows:
19-3 Sec. 33.52. TAXES INCLUDED IN JUDGMENT [FOR CURRENT TAXES].
19-4 (a) Only taxes that are delinquent on the date of a judgment may
19-5 be included in the amount recoverable under the judgment by the
19-6 taxing units that are parties to the suit [If the court orders the
19-7 foreclosure of a tax lien and the sale of real property, the
19-8 judgment may include foreclosure on any unpaid tax on the property
19-9 for the current year].
19-10 (b) In lieu of stating as a liquidated amount the aggregate
19-11 total of taxes, penalties, and interest due, a judgment may:
19-12 (1) set out the tax due each taxing unit for each
19-13 year; and
19-14 (2) provide that penalties and interest accrue on the
19-15 unpaid taxes as provided by Subchapter A [If the amount of tax for
19-16 the current tax year has not been determined on the date of
19-17 judgment, the court may order recovery of and foreclosure on the
19-18 amount of tax imposed on the property for the preceding tax year].
19-19 (c) For purposes of calculating penalties and interest due
19-20 under the judgment, it is presumed that the delinquency date for a
19-21 tax is February 1 of the year following the year in which the tax
19-22 was imposed, unless the judgment provides otherwise [If the
19-23 judgment does not provide for recovery of taxes imposed for the
19-24 current tax year, or for recovery of estimated taxes that cannot
19-25 then be calculated for the current year, the real property is
19-26 subject to the taxes for the current tax year and to the lien that
19-27 secures those taxes, and any subsequent purchaser takes the
20-1 property subject to those taxes and the tax lien].
20-2 (d) A taxing unit's claim for taxes that become delinquent
20-3 after the date of the judgment is not affected by the entry of the
20-4 judgment or a tax sale conducted under that judgment. Those taxes
20-5 may be collected by any remedy provided by this title.
20-6 SECTION 23. Section 33.53, Tax Code, is amended to read as
20-7 follows:
20-8 Sec. 33.53. ORDER OF SALE; PAYMENT BEFORE SALE. (a) If
20-9 judgment in a suit to collect a delinquent tax is for foreclosure
20-10 of a tax lien, the court shall order the property sold in
20-11 satisfaction of the amount of the judgment.
20-12 (b) On application by a taxing unit that is a party to the
20-13 judgment, the district clerk shall prepare an order to an officer
20-14 authorized to conduct execution sales ordering the sale of the
20-15 property. If more than one parcel of property is included in the
20-16 judgment, the taxing unit may specify particular parcels to be
20-17 sold. A taxing unit may request more than one order of sale as
20-18 necessary to collect all amounts due under the judgment.
20-19 (c) An order of sale:
20-20 (1) shall be returned to the district clerk as
20-21 unexecuted if not executed before the 181st day after the date the
20-22 order is issued; and
20-23 (2) may be accompanied by a copy of the judgment and a
20-24 bill of costs attached to the order and incorporate the terms of
20-25 the judgment or bill of costs by reference.
20-26 (d) A judgment or a bill of costs attached to the order of
20-27 sale is not required to be certified.
21-1 (e) If the owner pays the amount of the judgment before the
21-2 property is sold, the taxing unit shall:
21-3 (1) release the tax lien held by the taxing unit on
21-4 the property; and
21-5 (2) file for record with the clerk of the court in
21-6 which the judgment was rendered a release of the lien.
21-7 SECTION 24. Section 34.01, Tax Code, is amended to read as
21-8 follows:
21-9 Sec. 34.01. SALE OF PROPERTY. (a) Property seized or
21-10 ordered sold pursuant to foreclosure of a tax lien shall be sold by
21-11 the officer charged with selling the property, unless otherwise
21-12 directed by the taxing unit that requested the order of sale or by
21-13 an authorized agent or attorney for that unit. The sale shall be
21-14 conducted in the manner similar property is sold under execution
21-15 except as otherwise provided by this subtitle [subchapter].
21-16 (b) On receipt of an order of sale of real property, the
21-17 officer charged with selling the property shall endorse on the
21-18 order the date and exact time when the officer received the order.
21-19 The endorsement is a levy on the property without necessity for
21-20 going upon the ground. The officer shall calculate the total
21-21 amount due under the judgment, including all taxes, penalties, and
21-22 interest, plus any other amount awarded by the judgment, court
21-23 costs, and the costs of the sale, including the costs of
21-24 advertising. To assist the officer in making the calculation, the
21-25 collector of any taxing unit that is party to the judgment may
21-26 provide the officer with a certified tax statement showing the
21-27 amount due that taxing unit as of the date of the proposed sale.
22-1 If a certified tax statement is provided to the officer, the
22-2 officer shall rely on the amount included in the statement and is
22-3 not responsible or liable for the accuracy of the applicable
22-4 portion of the calculation.
22-5 (c) The officer charged with the sale shall give written
22-6 notice of the sale in the manner prescribed by Rule 21a, Texas
22-7 Rules of Civil Procedure, as amended, or that rule's successor to
22-8 each person who was a defendant to the judgment or that person's
22-9 attorney.
22-10 (d) An officer's failure to send the written notice of sale
22-11 or a defendant's failure to receive that notice is insufficient by
22-12 itself to invalidate:
22-13 (1) the sale of the property; or
22-14 (2) the title conveyed by that sale.
22-15 (e) A notice of sale under Subsection (c) must substantially
22-16 comply with this subsection. The notice must include:
22-17 (1) a statement of the authority under which the sale
22-18 is to be made;
22-19 (2) the date, time, and location of the sale; and
22-20 (3) a brief description of the property to be sold.
22-21 (f) A notice of sale is not required to include field notes
22-22 describing the property. A description of the property is
22-23 sufficient if the notice:
22-24 (1) states the number of acres and identifies the
22-25 original survey;
22-26 (2) as to property located in a platted subdivision or
22-27 addition, regardless of whether the subdivision or addition is
23-1 recorded, states the name by which the land is generally known
23-2 with reference to that subdivision or addition; or
23-3 (3) by reference adopts the description of the
23-4 property contained in the judgment.
23-5 (g) For publishing a notice of sale, a newspaper may charge
23-6 a rate that does not exceed the greater of:
23-7 (1) two cents per word; or
23-8 (2) an amount equal to the published word or line rate
23-9 of that newspaper for the same class of advertising.
23-10 (h) If there is not a newspaper published in the county of
23-11 the sale, or a newspaper that will publish the notice of sale for
23-12 the rate authorized by Subsection (g), the officer shall post the
23-13 notice in writing in three public places in the county not later
23-14 than the 20th day before the date of the sale. One of the notices
23-15 must be posted at the door of the county courthouse.
23-16 (i) The owner of real property subject to sale may file with
23-17 the officer charged with the sale a written request that the
23-18 property be divided and that only as many portions be sold as [is]
23-19 necessary to pay the amount [tax, penalties, interest, and costs
23-20 adjudged] due against the property, as calculated under Subsection
23-21 (b). In the request the owner shall describe the desired portions
23-22 and shall specify the order in which the portions should be sold.
23-23 The owner may not specify more than four portions or a portion that
23-24 divides a building or other contiguous improvement. The request
23-25 must be delivered to the officer not later than the seventh day
23-26 before the date of the sale.
23-27 (j) [(c)] If a [sufficient] bid sufficient to pay the lesser
24-1 of the amount calculated under Subsection (b) or the adjudged value
24-2 is not received, the taxing unit that requested the order of sale
24-3 may terminate the sale. If the taxing unit does not terminate the
24-4 sale, the officer making the sale shall bid the property off to the
24-5 [a] taxing unit that requested the order of sale, unless otherwise
24-6 agreed by each other taxing unit that is a party to the judgment,
24-7 for the aggregate amount of the judgment against the property or
24-8 for the market value of the property as specified in the judgment,
24-9 whichever is less. The duty of the officer conducting the sale to
24-10 bid off the property to a taxing unit under this subsection is
24-11 self-executing. The actual attendance of a representative of the
24-12 taxing unit at the sale is not a prerequisite to that duty.
24-13 (k) The taxing unit to which the property is bid off takes
24-14 title to the property for the use and benefit of itself and all
24-15 other taxing units that established tax liens in the suit. The
24-16 taxing unit's title includes all the interest owned by the
24-17 defendant, including the defendant's right to the use and
24-18 possession of the property, subject only to the defendant's right
24-19 of redemption. Payments in satisfaction of the judgment and any
24-20 costs or expenses of the sale may not be required of the purchasing
24-21 taxing unit until the property is redeemed or resold by the
24-22 purchasing taxing unit.
24-23 (l) Notwithstanding that property is bid off to a taxing
24-24 unit under this section, a taxing unit that established a tax lien
24-25 in the suit may continue to enforce collection of any amount for
24-26 which a former owner of the property is liable to the taxing unit,
24-27 including any post-judgment taxes, penalties, and interest, in any
25-1 other manner provided by law.
25-2 (m) [(d)] The officer making the sale shall prepare a deed
25-3 to the purchaser of real property at the sale, [or] to any other
25-4 person whom the purchaser may specify, or to the taxing unit to
25-5 which the property was bid off. The taxing unit that requested the
25-6 order of sale may elect to prepare a deed for execution by the
25-7 officer. The officer shall execute the deed and either file the
25-8 deed for recording with the county clerk or deliver the executed
25-9 deed to the taxing unit that requested the order of sale, which
25-10 shall file the deed for recording with the county clerk. The
25-11 county clerk shall file and record each deed filed under this
25-12 subsection and after recording shall return the deed to the
25-13 grantee.
25-14 (n) The deed vests good and perfect title in the purchaser
25-15 or the purchaser's assigns to the interest owned by the defendant
25-16 in the property subject to the foreclosure, including the
25-17 defendant's right to the use and possession of the property,
25-18 subject only to the defendant's right of redemption, the terms of a
25-19 recorded restrictive covenant [covenants] running with the land
25-20 that was recorded before January 1 of the year in which the tax
25-21 lien on the property arose, a recorded lien that arose under that
25-22 restrictive covenant that was not extinguished in the judgment
25-23 foreclosing the tax lien, and each valid easement [easements] of
25-24 record as of the date of the sale that was[, if such covenants or
25-25 easements were] recorded before [prior to] January 1 of the year
25-26 the tax lien arose. The deed may be impeached only for fraud.
25-27 (o) [(e)] Notwithstanding Subsection (j) [(c)], if a
26-1 sufficient bid is not received, the officer making the sale may bid
26-2 off property seized under Subchapter E, Chapter 33, [off] to a
26-3 person described by Section 11.181 for less than the tax warrant
26-4 amount or the market value of the property. Consent to the sale by
26-5 the taxing units entitled to receive proceeds of the sale is not
26-6 required.
26-7 (p) [(f)] Except as provided by [in] Subsection (o) [(e)],
26-8 property seized under Subchapter E, Chapter 33, may not be sold for
26-9 an amount that is less than the lesser of the market value of the
26-10 property or the total amount of taxes due on the property. A
26-11 taxing unit that takes title to property seized under that
26-12 subchapter takes title to the property for the use and benefit of
26-13 that taxing unit and all other taxing units that established tax
26-14 liens in the suit or that, on the date of the seizure, were owed
26-15 delinquent taxes on the property.
26-16 (q) A sale of property under this section to a purchaser
26-17 other than a taxing unit:
26-18 (1) extinguishes each lien securing payment of the
26-19 delinquent taxes, penalties, and interest against that property and
26-20 included in the judgment; and
26-21 (2) does not affect the personal liability of any
26-22 person for those taxes, penalties, and interest included in the
26-23 judgment that are not satisfied from the proceeds of the sale.
26-24 (r) A sale of real property under this section must take
26-25 place at the county courthouse in the county in which the land is
26-26 located. The sale shall occur in the same location in the
26-27 courthouse that is designated by the commissioners court of the
27-1 county for the sale of real property under Section 51.002, Property
27-2 Code.
27-3 (s) To the extent of a conflict between this section and a
27-4 provision of the Texas Rules of Civil Procedure that relates to an
27-5 execution, this section controls.
27-6 SECTION 25. Section 34.02, Tax Code, is amended to read as
27-7 follows:
27-8 Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of
27-9 a tax sale under Section 33.94 or 34.01 shall be applied in the
27-10 order prescribed by Subsection (b) [first to the payment of costs].
27-11 The amount included under each subdivision of Subsection (b) must
27-12 be fully paid before any of the proceeds may be applied to the
27-13 amount included under a subsequent subdivision [The remainder shall
27-14 be distributed to all taxing units participating in the sale in
27-15 satisfaction of the taxes, penalties, and interest due each].
27-16 (b) The proceeds shall be applied to:
27-17 (1) all costs of advertising the tax sale and all
27-18 original court costs payable to the clerk of the court;
27-19 (2) all fees and commissions payable to the officer
27-20 conducting the sale;
27-21 (3) taxes, penalties, and interest that are due under
27-22 the judgment; and
27-23 (4) any other amount awarded to a taxing unit under
27-24 the judgment.
27-25 (c) If the proceeds are not sufficient to pay the total
27-26 amount included under any subdivision of Subsection (b) [costs and
27-27 taxes, penalties, and interest due all participants in the sale],
28-1 each participant in the amount included under that subdivision is
28-2 entitled to a share of the proceeds [after payment of costs] in an
28-3 amount equal to the proportion its entitlement bears [taxes,
28-4 penalties, and interest bear] to the total amount included under
28-5 that subdivision [of taxes, penalties, and interest due all
28-6 participants in the sale].
28-7 (d) [(c)] If the sale is pursuant to foreclosure of a tax
28-8 lien, the officer conducting the sale shall pay any excess proceeds
28-9 after payment of all amounts [costs and of all taxes, penalties,
28-10 and interest] due all participants in the sale as specified by
28-11 Subsection (b) to the clerk of the court issuing the order of sale.
28-12 (e) [(d)] If the sale is pursuant to seizure of personal
28-13 property, the officer conducting the sale shall distribute any
28-14 excess of proceeds as provided by law for excess proceeds in the
28-15 case of execution.
28-16 (f) [(e)] In this section, "taxes" includes a charge, fee,
28-17 or expense that is expressly authorized by Section 32.06 or 32.065.
28-18 SECTION 26. Section 34.04, Tax Code, is amended to read as
28-19 follows:
28-20 Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (a) A person,
28-21 including a taxing unit, may file a petition in the court that
28-22 ordered the seizure or sale setting forth a claim to the excess
28-23 proceeds. The petition must be filed before the second anniversary
28-24 of [within seven years from] the date of the sale of the property.
28-25 The petition is not required to be filed as an original suit
28-26 separate from the underlying suit for seizure of the property or
28-27 foreclosure of a tax lien on the property but may be filed under
29-1 the cause number of the underlying suit.
29-2 (b) A copy of the petition shall be served, in the manner
29-3 prescribed by Rule 21a, Texas Rules of Civil Procedure, as
29-4 amended, or that rule's successor, on [the county attorney or, if
29-5 there is no county attorney, the district attorney and on] all
29-6 parties to the underlying action [suit that ordered the sale, if
29-7 any,] not later than the 20th day before the date set for a hearing
29-8 on the petition.
29-9 (c) At the hearing [if] the court [finds that the claimant
29-10 is entitled to recover the excess proceeds, it] shall order that
29-11 the proceeds be paid according to the following priorities to each
29-12 party that establishes its claim to the proceeds:
29-13 (1) to a taxing unit for any taxes, penalties, or
29-14 interest that have become due or delinquent on the subject property
29-15 subsequent to the date of the judgment;
29-16 (2) to any other lienholder, consensual or otherwise,
29-17 for the amount due under a lien, in accordance with the priorities
29-18 established by applicable law;
29-19 (3) to a taxing unit for any unpaid taxes, penalties,
29-20 interest, or other amounts adjudged due under the judgment that
29-21 were not satisfied from the proceeds from the tax sale; and
29-22 (4) to each owner of the property [him].
29-23 (d) Interest or costs may not be allowed under this section.
29-24 [(d) A claim for the excess proceeds may not be filed after
29-25 the expiration of seven years from the date the property is sold.]
29-26 SECTION 27. Section 34.05(a), Tax Code, as amended by
29-27 Chapters 906 and 1111, Acts of the 75th Legislature, Regular
30-1 Session, 1997, is reenacted to read as follows:
30-2 (a) If property is sold to a taxing unit that is a party to
30-3 the judgment, the taxing unit may sell the property at any time by
30-4 public or private sale. In selling the property, the taxing unit
30-5 may, but is not required to, use the procedures provided by Section
30-6 263.001, Local Government Code, or Section 272.001, Local
30-7 Government Code. The sale is subject to any right of redemption of
30-8 the former owner. The redemption period begins on the date the
30-9 deed to the taxing unit is filed for record.
30-10 SECTION 28. Sections 34.05(c) and (d), Tax Code, are amended
30-11 to read as follows:
30-12 (c) The taxing unit purchasing the property by resolution of
30-13 its governing body may request the sheriff or a constable to sell
30-14 the property at a public sale. If the purchasing taxing unit has
30-15 not sold the property within six months after the date on which the
30-16 owner's right of redemption terminates, any taxing unit that is
30-17 entitled to receive proceeds of the sale by resolution of its
30-18 governing body may request the sheriff or a constable in writing to
30-19 sell the property at a public sale. On receipt of a request made
30-20 under this subsection, the sheriff or constable shall sell the
30-21 property as provided by Subsection (d) [of this section], unless
30-22 the property is sold under [pursuant to] Subsection (h) or (i) [of
30-23 this section] before the date set for the public sale.
30-24 (d) Except as provided by this subsection, all public sales
30-25 requested as provided by Subsection (c) [of this section] shall be
30-26 conducted in the manner prescribed by the Texas Rules of Civil
30-27 Procedure for the sale of property under execution. The notice of
31-1 the sale must contain a description of the property to be sold,
31-2 which must be a legal description in the case of real property, the
31-3 number and style of the suit under which the property was sold at
31-4 the tax foreclosure sale, and the date of the tax foreclosure sale.
31-5 If the commissioners court of a county by order specifies the date
31-6 or time at which or location in the county where a public sale
31-7 requested under Subsection (c) shall be conducted, the sale shall
31-8 be conducted on the date and at the time and location specified in
31-9 the order. The acceptance of a bid by the officer conducting the
31-10 sale is conclusive and binding on the question of its sufficiency.
31-11 An action to set aside the sale on the grounds that the bid is
31-12 insufficient may not be sustained in court, except that a taxing
31-13 unit that participates in distribution of proceeds of the sale may
31-14 file an action before the first anniversary of [within one year
31-15 after] the date of the sale to set aside the sale on the grounds of
31-16 fraud or collusion between the officer making the sale and the
31-17 purchaser. On conclusion of the sale, the officer making the sale
31-18 shall prepare a deed to the purchaser. The taxing unit that
31-19 requested the sale may elect to prepare a deed for execution by the
31-20 officer. The officer shall execute the deed and either file the
31-21 deed for recording with the county clerk or deliver the executed
31-22 deed to the taxing unit that requested the sale, which shall file
31-23 the deed for recording with the county clerk. The county clerk
31-24 shall file and record each deed under this subsection and after
31-25 recording shall return the deed to the grantee.
31-26 SECTION 29. Section 34.05(h), Tax Code, as added by Chapter
31-27 712, Acts of the 75th Legislature, Regular Session, 1997, is
32-1 redesignated as Section 34.05(g), Tax Code, and amended to read as
32-2 follows:
32-3 (g) [(h)] A taxing unit to which property is bid off [in]
32-4 may recover its costs of upkeep, maintenance, and environmental
32-5 cleanup from the resale proceeds without further court order.
32-6 SECTION 30. Section 34.06, Tax Code, is amended by amending
32-7 Subsections (b) and (c) and adding Subsections (d), (e), and (f) to
32-8 read as follows:
32-9 (b) The [purchasing taxing unit shall pay all costs and
32-10 expenses of court, sale, and resale and, after deducting an amount
32-11 equal to the amount the taxing unit has reasonably spent for the
32-12 maintenance and preservation of the property, shall distribute the
32-13 remainder of the] proceeds of the resale shall be distributed as
32-14 required by Subsections (c)-(e).
32-15 (c) The purchasing taxing unit shall first retain an amount
32-16 from the proceeds to reimburse the unit for reasonable costs, as
32-17 defined by Section 34.21, incurred by the unit for:
32-18 (1) maintaining, preserving, and safekeeping the
32-19 property;
32-20 (2) marketing the property for resale; and
32-21 (3) costs described by Subsection (f).
32-22 (d) After retaining the amount authorized by Subsection (c),
32-23 the purchasing taxing unit shall then pay all costs of:
32-24 (1) the officer conducting the sale of the property;
32-25 and
32-26 (2) the clerk of the court in connection with the suit
32-27 and the sale of the property.
33-1 (e) After making the distribution under Subsection (d), any
33-2 remaining balance of the proceeds shall be paid to each taxing unit
33-3 participating in the sale in an amount equal to the proportion each
33-4 participant's taxes, penalties, and interest bear to the total
33-5 amount of taxes, penalties, and interest adjudged to be due all
33-6 participants in the sale[, less any amounts previously paid as
33-7 costs on the property as defined under Section 34.21(i)].
33-8 (f) The [(c) Notwithstanding Subsection (b), the]
33-9 purchasing taxing unit is entitled to recover from the proceeds of
33-10 a resale of the property any cost incurred by the taxing unit in
33-11 inspecting the property to determine whether there is a release or
33-12 threatened release of solid waste from the property in violation of
33-13 Chapter 361, Health and Safety Code, or a rule adopted or permit or
33-14 order issued by the Texas Natural Resource Conservation Commission
33-15 under that chapter, or a discharge or threatened discharge of waste
33-16 or a pollutant into or adjacent to water in this state from a point
33-17 of discharge on the property in violation of Chapter 26, Water
33-18 Code, or a rule adopted or permit or order issued by the commission
33-19 under that chapter, and in taking action to remove or remediate the
33-20 release or threatened release or discharge or threatened discharge
33-21 regardless of whether the taxing unit:
33-22 (1) was required by law to incur the cost; or
33-23 (2) obtained the consent of each taxing unit entitled
33-24 to receive proceeds of the sale under the judgment of foreclosure
33-25 to incur the cost.
33-26 SECTION 31. Section 34.07, Tax Code, is amended to read as
33-27 follows:
34-1 Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) The
34-2 purchaser at a void or defective tax sale or tax resale is
34-3 subrogated to the rights of the taxing unit in whose behalf the
34-4 property was sold or resold to the same extent a purchaser at a
34-5 void or defective sale conducted in behalf of a judgment creditor
34-6 is subrogated to the rights of the judgment creditor.
34-7 (b) Except as provided by Subsection (c) [of this section],
34-8 the purchaser at a void or defective tax sale or tax resale is
34-9 subrogated to the tax lien of the taxing unit in whose behalf the
34-10 property was sold or resold to the same extent a purchaser at a
34-11 void or defective mortgage or other lien foreclosure sale is
34-12 subrogated to the lien of the lienholder, and the purchaser is
34-13 entitled to a reforeclosure of the lien to which the purchaser [he]
34-14 is subrogated.
34-15 (c) If the purchaser at a void or defective tax sale or tax
34-16 resale paid less than the total amount of the judgment against the
34-17 property, the purchaser [he] is subrogated to the tax lien only in
34-18 the amount the purchaser [he] paid at the sale or resale.
34-19 (d) In lieu of pursuing the subrogation rights provided by
34-20 this section to which a purchaser [he] is subrogated, a purchaser
34-21 at a void tax sale may elect to file an action against the taxing
34-22 units to which the proceeds of the sale were distributed to recover
34-23 the amount paid at the sale. A purchaser who files a suit
34-24 authorized by this subsection waives all rights of subrogation [to
34-25 which he would] otherwise provided by this section [be subrogated].
34-26 (e) If the purchaser prevails in a suit filed under
34-27 Subsection (d), the court shall expressly provide in its final
35-1 judgment that:
35-2 (1) the tax sale is vacated and set aside; and
35-3 (2) any lien on the property extinguished by the tax
35-4 sale is reinstated on the property effective as of the date on
35-5 which the lien originally attached to the property.
35-6 SECTION 32. Section 34.08(b), Tax Code, is amended to read
35-7 as follows:
35-8 (b) A person may not commence an action challenging the
35-9 validity of a tax sale after the time set forth in Section
35-10 33.54(a)(1) or (2), as applicable to the property, against a
35-11 subsequent purchaser for value who acquired the property in
35-12 reliance on the tax sale. The purchaser may conclusively presume
35-13 that the tax sale was valid and shall have full title to the
35-14 property free and clear of the right, title, and interest of any
35-15 person that arose before the tax sale, subject only to recorded
35-16 restrictive covenants and valid easements of record set forth in
35-17 Section 34.01(n) [34.01(d)] and subject to applicable rights of
35-18 redemption.
35-19 SECTION 33. Section 34.21, Tax Code, as amended by Chapters
35-20 906, 914, and 1111, Acts of the 75th Legislature, Regular Session,
35-21 1997, is reenacted and amended to read as follows:
35-22 Sec. 34.21. RIGHT OF REDEMPTION. (a) The owner of real
35-23 property sold at a tax sale to a purchaser other than a taxing unit
35-24 [and] that was used as the residence homestead of the owner or that
35-25 was land designated for agricultural use when [judgment in] the
35-26 suit or the application for the warrant [to collect the tax] was
35-27 filed [rendered or when the tax warrant was issued] may redeem the
36-1 property on or before the second anniversary of [within two years
36-2 after] the date on which the purchaser's deed is filed for record
36-3 by paying the purchaser the amount the purchaser bid for the
36-4 property, the amount of the deed recording fee, and the amount paid
36-5 by the purchaser as taxes, penalties, interest, and costs on the
36-6 property, plus a redemption premium of 25 percent of the aggregate
36-7 total if the property is redeemed during the first year of the
36-8 redemption period or 50 percent of the aggregate total if the
36-9 property is redeemed during the second year of the redemption
36-10 period.
36-11 (b) If property that was used as the owner's residence
36-12 homestead or was land designated for agricultural use when the suit
36-13 or the application for the warrant [to collect the tax] was filed
36-14 is bid off to a taxing unit under Section 34.01(j) [34.01(c)] and
36-15 has not been resold by the taxing unit, the owner having a right of
36-16 redemption may redeem the property on or before the second
36-17 anniversary of [within two years after] the date on which the deed
36-18 of the taxing unit is filed for record by paying the taxing unit
36-19 the lesser of the amount of the judgment against the property or
36-20 the market value of the property as specified in that judgment,
36-21 [whichever is less,] plus the amount of the fee for filing the
36-22 taxing unit's deed and the amount spent [expended] by the taxing
36-23 unit as costs on the property.
36-24 (c) If real property that was used as the owner's residence
36-25 homestead or was land designated for agricultural use when the suit
36-26 or the application for the warrant [to collect the tax] was filed
36-27 has been resold by the taxing unit under Section 34.05, the owner
37-1 of the property having a right of redemption may redeem the
37-2 property on or before the second anniversary of [within two years
37-3 after] the date on which the taxing unit files for record the deed
37-4 from the sheriff or constable by paying the person who purchased
37-5 the property from the taxing unit the amount the purchaser paid for
37-6 the property, the amount of the fee for filing the purchaser's deed
37-7 for record, the amount paid by the purchaser as taxes, penalties,
37-8 interest, and costs on the property, plus a redemption premium of
37-9 25 percent of the aggregate total if the property is redeemed in
37-10 the first year of the redemption period or 50 percent of the
37-11 aggregate total if the property is redeemed in the second year of
37-12 the redemption period.
37-13 (d) If the amount paid by the owner of the property under
37-14 Subsection (c) is less than the amount of the judgment under which
37-15 the property was sold, the owner shall pay to the taxing unit to
37-16 which the property was bid off under Section 34.01 an amount equal
37-17 to the difference between the amount paid under Subsection (c) and
37-18 the amount of the judgment. The taxing unit shall issue a receipt
37-19 for a payment received under this subsection and shall distribute
37-20 the amount received to each taxing unit that participated in the
37-21 judgment and sale in an amount proportional to the unit's share of
37-22 the total amount of the aggregate judgments of the participating
37-23 taxing units. The owner of the property shall deliver the receipt
37-24 received from the taxing unit to the person from whom the property
37-25 is redeemed.
37-26 (e) The owner of real property sold at a tax sale other than
37-27 property that was used as the residence homestead of the owner or
38-1 that was land designated for agricultural use when the suit or the
38-2 application for the warrant [to collect the tax] was filed may
38-3 redeem the property in the same manner and by paying the same
38-4 amounts as prescribed by Subsection (a), (b), [or] (c), or (d), as
38-5 applicable, except that:
38-6 (1) the owner's right of redemption may be exercised
38-7 not [no] later than the 180th day [180 days] following the date on
38-8 which the purchaser's or taxing unit's deed is filed for record;
38-9 and
38-10 (2) the redemption premium payable by the owner to a
38-11 purchaser other than a taxing unit may [shall] not exceed 25
38-12 percent.
38-13 (f) [(e)] If the owner of the real property makes an
38-14 affidavit that the owner has made diligent search in the county in
38-15 which the property is located for the purchaser at the tax sale or
38-16 for the purchaser at resale, and has failed to find the purchaser,
38-17 that the purchaser is not a resident of the county in which the
38-18 property is located, that the owner and the purchaser cannot agree
38-19 on the amount of redemption money due, or that the purchaser
38-20 refuses to give the owner a quitclaim deed to the property, the
38-21 owner may redeem the land by paying the required amount as
38-22 prescribed by this section to the assessor-collector for the county
38-23 in which the property described has been redeemed. The
38-24 assessor-collector receiving the payment shall give the owner a
38-25 signed receipt witnessed by two persons. The receipt, when
38-26 recorded, is notice to all persons that the property described has
38-27 been redeemed. The assessor-collector shall on demand pay the
39-1 money received by the assessor-collector to the purchaser.
39-2 (g) [(e)] In this section:
39-3 (1) "Land designated for agricultural [Agricultural]
39-4 use" means land for which an application for appraisal under
39-5 Subchapter C or D, Chapter 23, has been finally approved [the
39-6 meaning assigned by Section 23.51].
39-7 (2) "Costs" includes the amount reasonably spent by
39-8 the purchaser for maintaining, preserving, [the maintenance,
39-9 preservation,] and safekeeping [of] the property, including the
39-10 cost of:
39-11 (A) property insurance;
39-12 (B) repairs or improvements required by a local
39-13 ordinance or building code or by a lease of the property in effect
39-14 on the date of the sale;
39-15 (C) discharging a lien imposed by a municipality
39-16 to secure expenses incurred by the municipality in remedying a
39-17 health or safety hazard on the property;
39-18 (D) dues or assessments for maintenance paid to
39-19 a property owners' association under a recorded restrictive
39-20 covenant to which the property is subject; and
39-21 (E) impact or standby fees imposed under the
39-22 Local Government Code or Water Code and paid to a political
39-23 subdivision.
39-24 (3) "Purchaser" includes a taxing unit to which
39-25 property is bid off under Section 34.01 [34.01(c)].
39-26 (4) "Residence homestead" has the meaning assigned by
39-27 Section 11.13.
40-1 (h) [(f)] The right of redemption does not grant or reserve
40-2 in the former owner of the real property the right to the use or
40-3 possession of the property, or to receive rents, income, or other
40-4 benefits from the property while the right of redemption exists.
40-5 (i) The owner of property who is entitled to redeem the
40-6 property under this section may request that the purchaser of the
40-7 property, or the taxing unit to which the property was bid off,
40-8 provide that owner a written itemization of all amounts spent by
40-9 the purchaser or taxing unit in costs on the property. The owner
40-10 must make the request in writing and send the request to the
40-11 purchaser at the address shown for the purchaser in the purchaser's
40-12 deed for the property, or to the business address of the collector
40-13 for the taxing unit, as applicable. The purchaser or the collector
40-14 shall itemize all amounts spent on the property in costs and
40-15 deliver the itemization in writing to the owner not later than the
40-16 10th day after the date the written request is received. Delivery
40-17 of the itemization to the owner may be made by depositing the
40-18 document in the United States mail, postage prepaid, addressed to
40-19 the owner at the address provided in the owner's written request.
40-20 Only those amounts included in the itemization provided to the
40-21 owner may be allowed as costs for purposes of redemption.
40-22 (j) A quitclaim deed to an owner redeeming property under
40-23 this section is not notice of an unrecorded instrument. The
40-24 grantee of a quitclaim deed and a successor or assign of the
40-25 grantee may be a bona fide purchaser in good faith for value under
40-26 recording laws.
40-27 [(g) In this section, "residence homestead" has the meaning
41-1 assigned by Section 11.13.]
41-2 [(h) In this section, "agricultural use" has the meaning
41-3 assigned by Section 23.51.]
41-4 [(i) In this section, "costs" is defined to include all
41-5 those amounts reasonably expended by a purchaser or taxing unit in
41-6 the maintenance, preservation, and safekeeping of the property,
41-7 including but not limited to:]
41-8 [(1) insurance against fire, flood, and other hazards;]
41-9 [(2) repairs and improvements required by local
41-10 ordinance, building code, or by the terms of any existing lease of
41-11 the property, whether written or oral;]
41-12 [(3) discharge of mowing, cleaning, or demolition
41-13 liens against the property that secure expenses incurred by a
41-14 municipality;]
41-15 [(4) dues, assessments for maintenance, or liens
41-16 provided by recorded restrictive covenants affecting the property
41-17 and payable to a property owner's association; and]
41-18 [(5) standby fees payable to a water district, fresh
41-19 water supply district, or other municipality as authorized by law.]
41-20 SECTION 34. Section 42.031(b), Tax Code, is amended to read
41-21 as follows:
41-22 (b) A taxing unit may not intervene in or in any other
41-23 manner be made a party, whether as defendant or otherwise, to an
41-24 appeal of an order of the appraisal review board determining a
41-25 taxpayer protest under Subchapter C, Chapter 41, if the appeal was
41-26 brought by the property owner.
41-27 SECTION 35. Section 49.231, Water Code, is amended by
42-1 amending Subsections (j)-(l) and adding Subsections (o) and (p) to
42-2 read as follows:
42-3 (j) The board may:
42-4 (1) charge interest, at the rate of one percent a
42-5 month, on a standby fee not paid in a timely manner in accordance
42-6 with the resolution or order imposing the standby fee; [and]
42-7 (2) impose a penalty in connection with a standby fee
42-8 that is not paid in a timely manner in accordance with the
42-9 resolution or order imposing the standby fee; and
42-10 (3) refuse to provide potable water, sanitary sewer,
42-11 or drainage service to the property for which the fee was assessed
42-12 until all delinquent standby fees on the property, [and] interest
42-13 on those fees, and all penalties imposed in connection with the
42-14 delinquent standby fees are fully paid.
42-15 (k) A standby fee imposed under this section is a personal
42-16 obligation of the person owning the undeveloped property on January
42-17 1 of the year for which the fee is assessed. A person is not
42-18 relieved of the obligation on transfer of title to the property.
42-19 On January 1 of each year, a lien attaches to undeveloped property
42-20 to secure payment of any standby fee, interest on the fee, and any
42-21 penalty imposed under this section [and the interest, if any, on
42-22 the fee]. The lien has the same priority as a lien for taxes of
42-23 the district.
42-24 (l) If a standby fee imposed under this section is not paid
42-25 in a timely manner, a district may file suit to foreclose the lien
42-26 securing payment of the fee, [and] interest on the fee, and any
42-27 penalty imposed in connection with the fee or to enforce the
43-1 personal obligation for the fee, [and] interest on the fee, and any
43-2 penalty imposed in connection with the fee [or both]. In [The
43-3 district may recover, in] addition to the fee, [and] interest on
43-4 the fee, and any penalty imposed, the district may recover
43-5 reasonable costs, including attorney's fees, incurred by the
43-6 district in enforcing the lien or obligation not to exceed 20
43-7 percent of the delinquent fee, [and] interest on the fee, and any
43-8 penalty. A suit authorized by this subsection must be filed not
43-9 later than the fourth anniversary of the date the fee became due.
43-10 A fee delinquent for more than four years, [and] interest on the
43-11 fee, and any penalty imposed are considered paid unless a suit is
43-12 filed before the expiration of the four-year period.
43-13 (o) The amount of the penalty authorized by Subsection (j)
43-14 is six percent of the amount of the standby fee for the first
43-15 calendar month the standby fee is delinquent, plus an additional
43-16 one percent of the amount of the fee for each of the subsequent
43-17 four months, or portion of each of those months, the fee is unpaid,
43-18 except that if the fee remains unpaid on the first day of the sixth
43-19 month after the month in which the fee became due, the amount of
43-20 the penalty is 12 percent of the amount of the standby fee.
43-21 (p) This subsection applies only to the board of a district
43-22 that has entered into a contract with an attorney for the
43-23 collection of unpaid standby fees. In addition to the penalty
43-24 authorized by Subsection (j) and in accordance with the resolution
43-25 or order imposing a standby fee, the board may provide that a
43-26 standby fee that is not paid in a timely manner is subject to a
43-27 penalty to defray costs of collection of the unpaid standby fee.
44-1 The amount of the additional penalty under this subsection may not
44-2 exceed 15 percent of the amount of the standby fee, interest on the
44-3 fee, and any penalty imposed in connection with the fee. A penalty
44-4 under this subsection is incurred on the date set by the board.
44-5 The penalty may be imposed only if the district or the attorney
44-6 with whom the district has contracted notifies the property owner
44-7 of the penalty and the amount of the penalty at least 30 but not
44-8 more than 60 days before the date the penalty is incurred. A
44-9 district that imposes the additional penalty under this subsection
44-10 may not collect both the additional penalty and the attorney's fees
44-11 provided by Subsection (l).
44-12 SECTION 36. Chapter I, Texas Probate Code, is amended by
44-13 adding Section 5C to read as follows:
44-14 Sec. 5C. ACTIONS TO COLLECT DELINQUENT PROPERTY TAXES. (a)
44-15 This section applies only to a decedent's estate that:
44-16 (1) is being administered in a pending probate
44-17 proceeding;
44-18 (2) owns or claims an interest in property against
44-19 which a taxing unit has imposed ad valorem taxes that are
44-20 delinquent; and
44-21 (3) is not being administered as an independent
44-22 administration under Section 145 of this code.
44-23 (b) Notwithstanding any provision of this code to the
44-24 contrary, if the probate proceedings are pending in a foreign
44-25 jurisdiction or in a county other than the county in which the
44-26 taxes were imposed, a suit to foreclose the lien securing payment
44-27 of the taxes or to enforce personal liability for the taxes must be
45-1 brought under Section 33.41, Tax Code, in a court of competent
45-2 jurisdiction in the county in which the taxes were imposed.
45-3 (c) If the probate proceedings have been pending for four
45-4 years or less in the county in which the taxes were imposed, the
45-5 taxing unit may present a claim for the delinquent taxes against
45-6 the estate to the personal representative of the estate in the
45-7 probate proceedings.
45-8 (d) If the taxing unit presents a claim against the estate
45-9 under Subsection (c) of this section:
45-10 (1) the claim of the taxing unit is subject to each
45-11 applicable provision in Parts 4 and 5, Chapter VIII, of this code
45-12 that relates to a claim or the enforcement of a claim in a probate
45-13 proceeding; and
45-14 (2) the taxing unit may not bring a suit in any other
45-15 court to foreclose the lien securing payment of the taxes or to
45-16 enforce personal liability for the delinquent taxes before the
45-17 first day after the fourth anniversary of the date the application
45-18 for the probate proceeding was filed.
45-19 (e) To foreclose the lien securing payment of the delinquent
45-20 taxes, the taxing unit must bring a suit under Section 33.41, Tax
45-21 Code, in a court of competent jurisdiction for the county in which
45-22 the taxes were imposed if:
45-23 (1) the probate proceedings have been pending in that
45-24 county for more than four years; and
45-25 (2) the taxing unit did not present a delinquent tax
45-26 claim under Subsection (c) of this section against the estate in
45-27 the probate proceeding.
46-1 (f) In a suit brought under Subsection (e) of this section,
46-2 the taxing unit:
46-3 (1) shall make the personal representative of the
46-4 decedent's estate a party to the suit; and
46-5 (2) may not seek to enforce personal liability for the
46-6 taxes against the estate of the decedent.
46-7 SECTION 37. Section 317(c), Texas Probate Code, is amended
46-8 to read as follows:
46-9 (c) Provisions Not Applicable to Certain Claims. The
46-10 foregoing provisions relative to the presentment of claims shall
46-11 not be so construed as to apply to a [the] claim:
46-12 (1) of any heir, devisee, or legatee who claims in
46-13 such capacity;
46-14 (2) [, or to any claim] that accrues against the
46-15 estate after the granting of letters for which the representative
46-16 of the estate has contracted; or
46-17 (3) for delinquent ad valorem taxes against a
46-18 decedent's estate that is being administered in probate in:
46-19 (A) a county other than the county in which the
46-20 taxes were imposed; or
46-21 (B) the same county in which the taxes were
46-22 imposed, if the probate proceedings have been pending for more than
46-23 four years.
46-24 SECTION 38. Section 801, Texas Probate Code, is amended to
46-25 read as follows:
46-26 Sec. 801. PRESENTMENT OF CLAIMS A PREREQUISITE FOR JUDGMENT.
46-27 (a) A judgment may not be rendered in favor of a claimant on any
47-1 claim for money that has not been legally presented to the guardian
47-2 of the estate of the ward and rejected by the guardian or by the
47-3 court, in whole or in part.
47-4 (b) Subsection (a) does not apply to a claim for delinquent
47-5 ad valorem taxes against the estate of a ward that is being
47-6 administered in probate in a county other than the county in which
47-7 the taxes were imposed.
47-8 SECTION 39. Article 2.07, Texas Non-Profit Corporation Act
47-9 (Article 1396-2.07, Vernon's Texas Civil Statutes), is amended by
47-10 adding Section D to read as follows:
47-11 D. Service of process, notice, or demand required or
47-12 permitted by law to be served by a political subdivision of this
47-13 state or by a person, including another political subdivision or an
47-14 attorney, acting on behalf of a political subdivision in connection
47-15 with the collection of a delinquent ad valorem tax may be served on
47-16 a corporation whose corporate privileges are forfeited under
47-17 Section 171.251, Tax Code, or is involuntarily dissolved under
47-18 Article 7.01 of this Act by delivering the process, notice, or
47-19 demand to any officer or director of the corporation, as listed in
47-20 the most recent records of the secretary of state. If the officers
47-21 or directors of the corporation are unknown or cannot be found,
47-22 service on the corporation may be made in the same manner as
47-23 service is made on unknown shareholders under law. Notwithstanding
47-24 any disability or reinstatement of a corporation, service of
47-25 process under this section is sufficient for a judgment against the
47-26 corporation or a judgment in rem against any property to which the
47-27 corporation holds title.
48-1 SECTION 40. Article 2.11, Texas Business Corporation Act, is
48-2 amended by adding Section D to read as follows:
48-3 D. Service of process, notice, or demand required or
48-4 permitted by law to be served by a political subdivision of this
48-5 state or by a person, including another political subdivision or an
48-6 attorney, acting on behalf of a political subdivision in connection
48-7 with the collection of a delinquent ad valorem tax may be served on
48-8 a corporation whose corporate privileges are forfeited under
48-9 Section 171.251, Tax Code, or is involuntarily dissolved under
48-10 Article 7.01 of this Act by delivering the process, notice, or
48-11 demand to any officer or director of the corporation, as listed in
48-12 the most recent records of the secretary of state. If the officers
48-13 or directors of the corporation are unknown or cannot be found,
48-14 service on the corporation may be made in the same manner as
48-15 service is made on unknown shareholders under law. Notwithstanding
48-16 any disability or reinstatement of a corporation, service of
48-17 process under this section is sufficient for a judgment against the
48-18 corporation or a judgment in rem against any property to which the
48-19 corporation holds title.
48-20 SECTION 41. Article 8.10, Texas Business Corporation Act, is
48-21 amended by adding Section E to read as follows:
48-22 E. Service of process, notice, or demand required or
48-23 permitted by law to be served by a political subdivision of this
48-24 state or by a person, including another political subdivision or an
48-25 attorney, acting on behalf of a political subdivision in connection
48-26 with the collection of a delinquent ad valorem tax may be served on
48-27 a foreign corporation whose privileges to transact business in this
49-1 state are forfeited under Section 171.251, Tax Code, or whose
49-2 certificate of authority is revoked under Article 8.16 of this Act
49-3 by delivering the process, notice, or demand to any officer or
49-4 director of the foreign corporation, as listed in the most recent
49-5 records of the secretary of state. If the officers or directors of
49-6 the foreign corporation are unknown or cannot be found, service on
49-7 the foreign corporation may be made in the same manner as service
49-8 is made on unknown shareholders under law. Notwithstanding any
49-9 disability or reinstatement of a foreign corporation, service of
49-10 process under this section is sufficient for a judgment against the
49-11 foreign corporation or a judgment in rem against any property to
49-12 which the foreign corporation holds title.
49-13 SECTION 42. The following statutes are repealed:
49-14 (1) Section 33.51, Tax Code, as amended by Chapters
49-15 914 and 1111, Acts of the 75th Legislature, Regular Session, 1997;
49-16 and
49-17 (2) Section 34.05(g), Tax Code, as amended by Chapters
49-18 712 and 906, Acts of the 75th Legislature, Regular Session, 1997.
49-19 SECTION 43. (a) Except as otherwise provided by Subsections
49-20 (b) and (c) of this section, this Act takes effect September 1,
49-21 1999.
49-22 (b) Sections 1, 2, 3, 4, 5, 8, and 9 of this Act take effect
49-23 January 1, 2000, and apply only to ad valorem taxes imposed for a
49-24 tax year that begins on or after that date.
49-25 (c) Sections 6, 10, 11, 12, 14, 15, 16, and 34 of this Act
49-26 take effect January 1, 2000.
49-27 SECTION 44. The change in law made by Section 12 of this Act
50-1 applies to all liens for which notice may be filed under Section
50-2 32.015, Tax Code, with the Texas Department of Housing and
50-3 Community Affairs on or after January 1, 2000.
50-4 SECTION 45. The change in law made by Section 16 of this Act
50-5 applies to the notice required to be given by Section 33.04(b), Tax
50-6 Code, in and after 2000. Penalties and interest on a delinquent
50-7 tax are not canceled under Section 33.04, Tax Code, for failure to
50-8 deliver a notice required by Section 33.04(b) of that code as it
50-9 existed immediately before the effective date of this Act if the
50-10 notice is not required by Section 33.04(b) of that code as amended
50-11 by this Act.
50-12 SECTION 46. The changes in law made by Sections 21 and 22
50-13 of this Act apply to all tax suits, regardless of when commenced,
50-14 in which judgment is entered on or after September 1, 1999.
50-15 SECTION 47. The changes in law made by Sections 23, 24, and
50-16 25 of this Act apply to all tax sales conducted on or after
50-17 September 1, 1999, whether the judgment on which the sale is based
50-18 was entered before, on, or after that date. For purposes of this
50-19 section, the date on which a tax sale was conducted is considered
50-20 to be the first Tuesday of the month in which the public auction
50-21 occurred.
50-22 SECTION 48. The changes in law made by Section 26 of this
50-23 Act apply to the disposition of excess proceeds of a property tax
50-24 foreclosure or summary sale paid into court regardless of the date
50-25 on which the sale occurred or the date on which the proceeds were
50-26 paid into the court.
50-27 SECTION 49. The changes in law made by Sections 28 and 30 of
51-1 this Act apply to any resale of property conducted on or after
51-2 September 1, 1999, based on a judgment signed before, on, or after
51-3 that date. For purposes of this section, the date on which a
51-4 resale was conducted is considered to be the date on which the
51-5 grantor's acknowledgment was taken or, if multiple grantors, the
51-6 latest date of acknowledgment of the various grantors.
51-7 SECTION 50. The change in law made by Section 31 of this Act
51-8 applies to any tax resale of property based on an original tax sale
51-9 conducted before, on, or after September 1, 1999.
51-10 SECTION 51. The change in law made by Section 33 of this Act
51-11 applies to redemption of real property sold at a tax sale conducted
51-12 on or after September 1, 1999, whether the judgment on which the
51-13 sale is based was entered before, on, or after September 1, 1999.
51-14 Redemption of real property sold at a tax sale conducted before
51-15 September 1, 1999, is governed by the law in effect when the sale
51-16 occurred, and the former law is continued in effect for that
51-17 purpose. For purposes of this section, the date on which a tax
51-18 sale was conducted is considered to be the first Tuesday of the
51-19 month in which the public auction occurred.
51-20 SECTION 52. The changes in law made by Sections 36, 37, and
51-21 38 of this Act apply to the estates of all decedents, regardless of
51-22 the date of death, and to the estates of all wards, regardless of
51-23 the date the application for appointment of a guardian was filed,
51-24 and to all causes of action pending on September 1, 1999, or
51-25 brought after that date.
51-26 SECTION 53. The changes in law made by Sections 39, 40, and
51-27 41 apply to all actions pending on September 1, 1999, and to any
52-1 actions brought after that date.
52-2 SECTION 54. The importance of this legislation and the
52-3 crowded condition of the calendars in both houses create an
52-4 emergency and an imperative public necessity that the
52-5 constitutional rule requiring bills to be read on three several
52-6 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3549 was passed by the House on May
8, 1999, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 3549 on May 27, 1999, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 3549 on May 30, 1999, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3549 was passed by the Senate, with
amendments, on May 24, 1999, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 3549 on May 30, 1999,
by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor