By Heflin H.B. No. 3549
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to procedural and technical corrections of the Texas
1-3 Property Tax Code and the Texas Finance Code, and relating to
1-4 notices of sale, orders of sale, proceeds of sale, excess proceeds
1-5 of sale, redemptions in delinquent tax suits, collection of taxes
1-6 on sale of business, additional penalty on taxes with delayed
1-7 delinquency dates and on delinquent standby fees, notices of
1-8 delinquency, subrogation of purchasers at void or defective tax
1-9 resales, taxes to be included in judgments, jurisdictional
1-10 provisions for tax claims against certain estates in probate,
1-11 service of process on corporations following forfeiture of
1-12 corporate privileges, and repeals of overlapping and duplicate
1-13 provisions in the Tax Code.
1-14 BE IN ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Section 25.06, Tax Code, is amended to read as
1-16 follows:
1-17 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
1-18 INTEREST. Except as provided by Section 25.07 of this code,
1-19 property encumbered by a leasehold or other possessory interest or
1-20 by a mortgage, deed of trust, or other interest securing payment or
1-21 performance of an obligation shall be listed in the name of the
2-1 owner of the property so encumbered. Unless otherwise directed in
2-2 writing under Section 1.111(f) of this code, property subject to an
2-3 installment contract of sale shall be listed under the name of the
2-4 seller if the installment contract is not filed of record in the
2-5 real property records of the county.
2-6 SECTION 2. Sec. 31.03, Tax Code, is amended by adding
2-7 Subsections (d) and (e) to read as follows:
2-8 (d) The governing body of a taxing unit or appraisal
2-9 district which has by official action imposed the additional
2-10 penalty provided by Section 33.07 of this code, and which taxing
2-11 unit or appraisal district has also provided for the split payment
2-12 under this section, may further provide, in the manner required by
2-13 law for official action by the body, that taxes subject to this
2-14 section and becoming delinquent on July 1 incur an additional
2-15 penalty on the date provided by Subsection (e) of this section if
2-16 the taxing unit or appraisal district or another taxing unit that
2-17 collects taxes for the unit has contracted with an attorney
2-18 pursuant to Section 6.30 of this code. The penalty is to defray
2-19 costs of collection, and the amount of the penalty may not exceed
2-20 15 percent of the amount of taxes, penalty, and interest due.
2-21 (e) Upon delivery by the tax collector of a notice of
2-22 delinquency and of the additional penalty to the property owner,
2-23 the penalty is incurred on the first day of the next month
2-24 following the delinquency that will provide a period of at least 21
2-25 days after the date of delivery of the notice. A tax lien attaches
3-1 to the property on which the tax is imposed to secure payment of
3-2 the additional penalty. If a taxing unit or appraisal district
3-3 provides for the additional penalty under this section, neither the
3-4 taxing unit nor the appraisal district may recover attorney's fees
3-5 in a suit to collect delinquent taxes subject to the penalty.
3-6 SECTION 3. Sec. 31.031, Tax Code, is amended by adding
3-7 Subsections (e) and (f) to read as follows:
3-8 (e) The governing body of a taxing unit or appraisal
3-9 district which has by official action imposed the additional
3-10 penalty provided by Section 33.07 of this code may further provide,
3-11 in the manner required by law for official action by the body, that
3-12 taxes to which this section applies and which become delinquent on
3-13 or after June 1 incur an additional penalty on the date provided by
3-14 Subsection (f) of this section if the taxing unit or appraisal
3-15 district or another taxing unit that collects taxes for the unit
3-16 has contracted with an attorney pursuant to Section 6.30 of this
3-17 code. The penalty is to defray costs of collection, and the amount
3-18 of the penalty may not exceed 15 percent of the amount of taxes,
3-19 penalty, and interest due.
3-20 (f) Upon delivery by the tax collector of a notice of
3-21 delinquency and of the additional penalty to the property owner,
3-22 the penalty is incurred on the first day of the next month
3-23 following the delinquency that will provide a period of at least 21
3-24 days after the date of delivery of the notice. A tax lien attaches
3-25 to the property on which the tax is imposed to secure payment of
4-1 the additional penalty. If a taxing unit or appraisal district
4-2 provides for the additional penalty under this section, neither the
4-3 taxing unit nor the appraisal district may recover attorney's fees
4-4 in a suit to collect delinquent taxes subject to the penalty.
4-5 SECTION 4. Section 31.032, Tax Code, is amended by
4-6 re-designating Subsections (f) and (g) as Subsections (h) and (I)
4-7 respectively, and by adding new Subsections (f) and (g) to read as
4-8 follows:
4-9 (f) The governing body of a taxing unit or appraisal
4-10 district which has by official action imposed the additional
4-11 penalty provided by Section 33.07 of this code may further provide,
4-12 in the manner required by law for official action by the body, that
4-13 taxes to which this section applies and which become delinquent on
4-14 or after June 1 incur an additional penalty on the date provided by
4-15 Subsection (g) of this section if the taxing unit or appraisal
4-16 district or another taxing unit that collects taxes for the unit
4-17 has contracted with an attorney pursuant to Section 6.30 of this
4-18 code. The penalty is to defray costs of collection, and the amount
4-19 of the penalty may not exceed 15 percent of the amount of taxes,
4-20 penalty, and interest due.
4-21 (g) Upon delivery by the tax collector of a notice of
4-22 delinquency and of the additional penalty to the property owner,
4-23 the penalty is incurred on the first day of the next month
4-24 following the delinquency that will provide a period of at least 21
4-25 days after the date of delivery of the notice. A tax lien
5-1 attaches to the property on which the tax is imposed to secure
5-2 payment of the additional penalty. If a taxing unit or appraisal
5-3 district provides for the additional penalty under this section,
5-4 neither the taxing unit nor the appraisal district may recover
5-5 attorney's fees in a suit to collect delinquent taxes subject to
5-6 the penalty.
5-7 (h) [(f)] The comptroller shall adopt rules to implement
5-8 this section.
5-9 (I) [(g)] In this section: (1) "Disaster" has the meaning
5-10 assigned by Section 418.004, Government Code.
5-11 (2) "Disaster area" has the meaning assigned by Section
5-12 151.350.
5-13 SECTION 5. Sec. 31.04, Tax Code, is amended by adding
5-14 Subsections (f) and (g) to read as follows:
5-15 (f) The governing body of a taxing unit or appraisal
5-16 district which has by official action imposed the additional
5-17 penalty provided by Section 33.07 of this code may further provide,
5-18 in the manner required by law for official action by the body, that
5-19 taxes to which this section applies and which become delinquent on
5-20 or after June 1 incur an additional penalty on the date provided by
5-21 Subsection (g) of this section if the taxing unit or appraisal
5-22 district or another taxing unit that collects taxes for the unit
5-23 has contracted with an attorney pursuant to Section 6.30 of this
5-24 code. The penalty is to defray costs of collection, and the amount
5-25 of the penalty may not exceed 15 percent of the amount of taxes,
6-1 penalty, and interest due.
6-2 (g) Upon delivery by the tax collector of a notice of
6-3 delinquency and of the additional penalty to the property owner,
6-4 the penalty is incurred on the first day of the next month
6-5 following the delinquency that will provide a period of at least 21
6-6 days after the date of delivery of the notice. A tax lien
6-7 attaches to the property on which the tax is imposed to secure
6-8 payment of the additional penalty. If a taxing unit or appraisal
6-9 district provides for the additional penalty under this section,
6-10 neither the taxing unit nor the appraisal district may recover
6-11 attorney's fees in a suit to collect delinquent taxes subject to
6-12 the penalty.
6-13 SECTION 6. Chapter 31, Tax Code, is amended by adding
6-14 Section 31.081 to read as follows:
6-15 Sec. 31.081. PROPERTY TAX COLLECTION ON TERMINATION OR SALE
6-16 OF BUSINESS. (a) If a person who is liable under this title for
6-17 the payment of taxes assessed against personal property used in the
6-18 operation of a business sells the business or inventory of the
6-19 business or quits the business, the successor to the seller or the
6-20 seller's assignee shall withhold an amount of the purchase price
6-21 sufficient to pay all of the personal property taxes, penalties and
6-22 interest due until the seller provides a receipt from the tax
6-23 collector showing that the taxes, penalties and interest have been
6-24 paid or a tax certificate under Section 31.08 of this code stating
6-25 that no amount is due.
7-1 (b) The purchaser of a business or inventory who fails to
7-2 withhold an amount of the purchase price as required by this
7-3 section is liable for the amount required to be withheld to the
7-4 extent of the value of the purchase price.
7-5 (c) The purchaser of a business or inventory may request
7-6 that the tax collector issue a tax certificate stating that no tax
7-7 is due or issue a statement of the amount required to be paid in
7-8 order to have a certificate that no tax is due. The tax collector
7-9 shall issue the certificate or statement within 10 days after
7-10 receiving the request.
7-11 (d) If the tax collector fails to mail the certificate or
7-12 statement within the 10 day period provided by Subsection (c) of
7-13 this section, the purchaser is released from the obligation to
7-14 withhold the purchase price or pay the amounts due.
7-15 (e) Any action to enforce the obligation of a purchaser
7-16 under this section must be brought not later than four years after
7-17 the day the former owner of the business sells the business or
7-18 inventory. Any action to enforce the purchaser's obligation under
7-19 this section is further subject to a limitation plea by the
7-20 purchaser as to any taxes more than four years delinquent as of the
7-21 date of issuance of the tax collector's statement under Subsection
7-22 (c) of this section.
7-23 (f) This section shall not operate so as to absolve the
7-24 seller of personal liability under this title for the payment of
7-25 taxes.
8-1 (g) A "sale of a business" is deemed to have occurred under
8-2 this section if the purchaser acquires the name of the business or
8-3 the goodwill associated with the business.
8-4 (h) A "sale of the inventory" of a business is deemed to
8-5 have occurred under this section if the purchaser acquires an
8-6 amount of the inventory, the value of which equals one half or more
8-7 of the value of the seller's entire inventory as of the date of
8-8 sale.
8-9 (I) The phrase "value of the purchase price" as used in
8-10 Subsection (b) of this section includes any promissory note given
8-11 in consideration of the sale to the extent of the note's market
8-12 value on the day of sale, regardless of whether the purchaser has
8-13 yet been required to make any payments on the note.
8-14 SECTION 7. Subsection (a), Section 31.12, Tax Code, is
8-15 amended to read as follows:
8-16 Sec. 31.12. PAYMENT OF TAX REFUNDS; INTEREST. (a) If a
8-17 refund of a tax provided by Section 11.431(b), 26.07(g), 26.15(f),
8-18 or 31.11 is paid on or before the 90th [60th] day after the date
8-19 the liability for the refund arises, no interest is due on the
8-20 amount refunded. If not paid on or before that 90th [60th] day,
8-21 the amount of the tax to be refunded accrues interest at a rate of
8-22 one percent for each month or part of a month that the refund is
8-23 unpaid, beginning with the date on which the liability for the
8-24 refund arises.
8-25 SECTION 8. Section 32.01, Tax Code, is amended to
9-1 redesignate the existing Subsection (c) as Subsection (d) and by
9-2 adding a new Subsection (c), to read as follows:
9-3 (c) With respect to an owner's real property, the
9-4 description for which may be ascertained with certainty by metes
9-5 and bounds contained in instruments of conveyance, and part of
9-6 which constitutes the owner's residence homestead taxed separately
9-7 and apart from the remainder of the property, the liens under this
9-8 section securing the taxes imposed on both the homestead and the
9-9 remainder of the property owned extend in solido to the owner's
9-10 entire property as described in the instrument or instruments of
9-11 conveyance.
9-12 (d) [(c)] The lien under this section is perfected on
9-13 attachment and, except as provided by Section 32.03(b), perfection
9-14 requires no further action by the taxing unit.
9-15 SECTION 9. Subsection (b), Section 32.015, Tax Code, is
9-16 amended to read as follows:
9-17 (b) The collector may simultaneously file notice of tax
9-18 liens of all the taxing units served by the collector. However,
9-19 notice of any lien for taxes for the prior calendar year must be
9-20 filed with the department prior to September 1 of the following
9-21 year. Any lien for which the notice is not filed by such date is
9-22 unenforceable against [extinguished and is not enforceable]:
9-23 (1) a bona fide purchaser for value who is without
9-24 notice and actual knowledge, and
9-25 (2) a holder of a lien recorded on the manufactured
10-1 home document of title.
10-2 SECTION 10. Section 32.05, Tax Code, is amended by adding
10-3 Subsections (d) and (e) to read as follows:
10-4 (d) In Subsection (b) of this section, "holder of a lien"
10-5 includes a property owners' association or homeowners' association
10-6 which claims a lien perfected under recorded restrictive covenants
10-7 running with the land encumbered by the tax lien.
10-8 (e) In Subsection (c) of this section,"recorded restrictive
10-9 covenants" shall not be construed to include a lien perfected under
10-10 those restrictive covenants and held by a property owners'
10-11 association or homeowners' association.
10-12 SECTION 11. Subsections (e) and (g), Section 32.07, Tax
10-13 Code, are amended to read as follows:
10-14 (e) [With respect to an ad valorem tax or other money
10-15 subject to the provisions of Subsection (d), a] An individual who
10-16 controls or supervises the collection of tax or money from another
10-17 person, or an individual who controls or supervises the accounting
10-18 for and paying over of the tax or money, and who willfully fails to
10-19 pay or cause to be paid the tax or money is liable as a responsible
10-20 individual for an amount equal to the tax or money, plus all
10-21 interest, penalties and costs, not paid or caused to be paid. The
10-22 liability imposed by this subsection is in addition to any other
10-23 penalty provided by law. The dissolution of a corporation,
10-24 association, limited liability company, or partnership does not
10-25 affect a responsible individual's liability under this subsection.
11-1 (g) In this section:
11-2 (1) "Responsible individual" includes an officer,
11-3 manager, director, or employee or a corporation, association, or
11-4 limited liability company or a member of a partnership who, as an
11-5 officer, manager, director, employee, or member, is under a duty to
11-6 perform an act with respect to the collection, accounting, or
11-7 payment of a tax or money subject to the provisions of Subsection
11-8 (d).
11-9 (2) "Tax" includes any ad valorem tax or money subject
11-10 to the provisions of Subsection (d), including the penalty and
11-11 interest computed by reference to the amount of the tax or money.
11-12 (3) "The person who owns or acquires the property"
11-13 includes the seller of property subject to an installment contract
11-14 of sale together with any purchaser whose obligations under such a
11-15 contract includes the obligation to pay taxes on the property.
11-16 SECTION 12. Subsection (a), Section 33.011, Tax Code, is
11-17 amended to read as follows:
11-18 (a) The governing body of a taxing unit shall waive
11-19 penalties and may provide for the waiver of interest on a
11-20 delinquent tax if an act or omission of an officer, employee, or
11-21 agent of the taxing unit or the appraisal district in which the
11-22 taxing unit participates caused or resulted in the taxpayer's
11-23 failure to pay the tax before delinquency and if the tax is paid
11-24 within 21 days after the taxpayer knows or should know of the
11-25 delinquency. The governing body of a taxing unit may delegate to
12-1 the tax assessor-collector the authority to waive penalties and
12-2 interest pursuant to this Subsection and subject to any provisions
12-3 by the governing body for limitations or restrictions on that
12-4 authority
12-5 SECTION 13. Subsections (b) and (c), Section 33.04, Tax Code
12-6 are amended and Subsections (d), (e) and (f) are added to the
12-7 section, to read as follows:
12-8 (b) In addition to the notice required by Subsection (a) of
12-9 this section, the tax collector for each taxing unit in each year
12-10 divisible by five shall deliver by mail a written notice of
12-11 delinquency to:
12-12 (1) each person whose name and address is listed on
12-13 the most recent certified appraisal roll if the property so listed
12-14 on that roll is shown by the tax collector's records as having [who
12-15 owes a tax that has] been delinquent more than one year; and [whose
12-16 name and mailing address are known to the collector or can be
12-17 determined by the exercise of reasonable diligence.]
12-18 (2) each person who owes a tax that has been
12-19 delinquent more than one year on personal property or on an
12-20 interest in a mineral estate which is no longer listed on the
12-21 current appraisal roll under that person's name, but whose name and
12-22 mailing address are known to the collector.
12-23 (c) The tax collector [He] shall state in the notice
12-24 required by Subsection (b) of this section the amount of the
12-25 delinquent tax, penalties, and interest due, the description of the
13-1 property on which the tax was imposed, and the year for which the
13-2 tax is delinquent. Any notices required by Subsection (b) [If the
13-3 person owes delinquent taxes] for more than one year or on more
13-4 than one property[, the collector] may be included [all the
13-5 delinquent taxes the person owes] in a single notice.
13-6 (d) A failure by [(e) Penalties and interest on a tax
13-7 delinquent more than five years or a multiple of five years are
13-8 canceled and may not be collected. If] the collector to [has not]
13-9 deliver[ed] the notice required by Subsection (b) of this section
13-10 constitutes an affirmative defense available to the person entitled
13-11 to the notice in any suit brought against that person for the
13-12 enforced collection of penalties and interest on taxes delinquent
13-13 more than five years or a multiple of five years. [in each year
13-14 divisible by five following the date on which the tax first became
13-15 delinquent for one year.]
13-16 (e) Notwithstanding the provisions of Subsection (d) of this
13-17 section, interest and penalty on a tax resumes and shall be
13-18 collected by the tax collector if, subsequent to any failure to
13-19 deliver the notice required by Subsection (b), the tax collector
13-20 thereafter delivers the notice in any year divisible by five. The
13-21 resumption of interest and penalty on the tax is prospective only
13-22 and begins to accrue at the rates provided by Section 33.01 on the
13-23 first day of the next month following the delivery of the notice
13-24 which will provide a period of at least 21 days after the date of
13-25 delivery.
14-1 (f) A notice under this section is presumed delivered when
14-2 it is deposited in regular first class mail, with postage prepaid,
14-3 and addressed to the person designated under Subsection (b).
14-4 Notwithstanding the provisions of Section 1.07 of this code, the
14-5 presumption of delivery under this section may not be rebutted with
14-6 evidence of failure to receive the notice.
14-7 SECTION 14. Subsection (a), Section 33.47, Tax Code is
14-8 amended to read as follows:
14-9 Sec. 33.47. TAX RECORDS AS EVIDENCE. (a) In a suit to
14-10 collect a delinquent tax, the taxing unit's current tax roll and
14-11 delinquent tax roll or certified copies of the entries showing the
14-12 property and the amount of the tax, penalties and interest imposed
14-13 constitute prima facie evidence that each person charged with a
14-14 duty relating to the imposition of the tax, penalties and interest
14-15 has complied with all requirements of law and that the amount of
14-16 tax, penalties and interest alleged to be delinquent against the
14-17 property listed is the correct amount.
14-18 SECTION 15. Subsection (b), Section 33.50, Tax Code, is
14-19 amended to read as follows:
14-20 (b) If the judgment in a suit to collect a delinquent tax is
14-21 for the foreclosure of a tax lien on property, the order of sale
14-22 shall specify that the property may be sold to a taxing unit that
14-23 is a party to the suit or to any other person, other than a person
14-24 owning an interest in the property or any party to the suit that is
14-25 not a taxing unit for the market value of the property stated in
15-1 the judgment or the aggregate amount of the judgments against the
15-2 property, whichever is less. The order of sale shall further
15-3 specify that the property may not be sold to a person owning an
15-4 interest in the property or to any party to the suit that is not a
15-5 taxing unit unless;
15-6 (1) that person or party is the highest bidder at the
15-7 tax sale, and
15-8 (2) the bid by that person or party equals or exceeds
15-9 the aggregate amount of the judgments against the property,
15-10 including all costs of suit and sale.
15-11 SECTION 16. Section 33.51, Tax Code, as amended by Acts
15-12 1997, 75th Legislature, ch. 914, Section 6, is repealed.
15-13 SECTION 17. Section 33.51, Tax Code, as amended by Acts
15-14 1997, 75th Legislature, ch. 1111, Section 2, is repealed.
15-15 SECTION 18. Section 33.52, Tax Code, and its heading are
15-16 amended to read as follows:
15-17 Sec. 33.52. TAXES TO BE INCLUDED IN JUDGMENT. [JUDGMENT FOR
15-18 CURRENT TAXES] (a) Only taxes that are delinquent on the date of
15-19 a judgment shall be included in the amount recovered by the taxing
15-20 units. In lieu of stating the aggregate total of tax, penalties
15-21 and interest due as a liquidated sum, a judgment is sufficient if
15-22 it merely sets out the base tax due for each year and provides that
15-23 penalties and interest accrue on the unpaid balance pursuant to
15-24 Subchapter A of this Chapter. For the purposes of calculating
15-25 penalties and interest due pursuant to the judgment it shall be
16-1 presumed that the delinquency date is February 1 of the year
16-2 following the year in which the tax was imposed unless otherwise
16-3 stated in the judgment.
16-4 (b) A taxing unit's claim for taxes that become delinquent
16-5 after the date of the judgment shall not be affected by the entry
16-6 of a judgment or any sale conducted pursuant to such a judgment and
16-7 may be collected by any of the remedies provided by this Code.
16-8 SECTION 19. Section 33.52, Tax Code, as amended by Acts
16-9 1997, 75th Legislature, ch. 906, Section 8, is repealed.
16-10 SECTION 20. Section 33.52, Tax Code, as amended by Acts
16-11 1997, 75th Legislature, ch. 981, Section 2, is repealed.
16-12 SECTION 21. . Section 33.52, Tax Code, as amended by Acts
16-13 1997, 75th Legislature, ch. 1111, Section 3, is repealed.
16-14 SECTION 22. Subsection (a), Section 33.53, Tax Code, is
16-15 amended to read as follows:
16-16 Sec. 33.53. ORDER OF SALE; PAYMENT BEFORE SALE. (a) If
16-17 judgment in a suit to collect a delinquent tax is for foreclosure
16-18 of a tax lien, the court shall order the property sold in
16-19 satisfaction of the amount of the judgment. Upon application by
16-20 any taxing unit that is a party to the judgment, the district clerk
16-21 shall prepare an order to an officer authorized to conduct
16-22 execution sales, ordering the sale of the property. The taxing
16-23 unit may specify particular parcels of the property to be sold if
16-24 multiple parcels are included in the judgment. A taxing unit may
16-25 request more than one order of sale, if necessary to collect all
17-1 amounts due under the judgment. The order of sale shall be
17-2 returnable to the district clerk as unexecuted if not executed
17-3 within one-hundred-eighty (180) days after issuance. The order of
17-4 sale may be accompanied with an attached copy of the judgment and a
17-5 bill of costs and may incorporate the terms of either by reference.
17-6 It is not required that the attached copies of the judgment and
17-7 bill of costs be certified.
17-8 SECTION 23. Section 34.01, Tax Code, is amended to read as
17-9 follows:
17-10 Sec. 34.01. SALE OF PROPERTY. (a) Property seized or
17-11 ordered sold pursuant to foreclosure of a tax lien shall be sold by
17-12 the officer charged with the sale, unless otherwise directed by the
17-13 taxing unit that requested the order, its agent or attorney. The
17-14 sale shall be conducted in the manner similar property is sold
17-15 under execution except as otherwise provided by this subtitle.
17-16 [subchapter.]
17-17 (b) Upon receipt of an order of sale of real property, the
17-18 officer charged with the sale shall indorse thereon the exact hour
17-19 and day of receipt, which indorsement shall constitute a levy on
17-20 the property without necessity for going upon the ground. The
17-21 officer shall calculate the total amount due under the judgment,
17-22 including the taxes, penalties and interest due, any other amounts
17-23 awarded by the judgment, court costs, and the costs of the sale,
17-24 including the costs of advertising under Subsection (c) of this
17-25 section. For the purposes of making this calculation, the tax
18-1 assessor-collector of each taxing unit which is party to the
18-2 judgment may provide the officer with a certified tax statement
18-3 showing the amount due as of the date of the proposed sale. If
18-4 provided, the officer shall rely on the amounts so certified by the
18-5 tax assessor-collector and shall have no responsibility or
18-6 liability for the accuracy of that portion of the calculation.
18-7 (c) The officer charged with the sale shall give written
18-8 notice of the sale, in the manner prescribed by Rule 21a, Texas
18-9 Rules of Civil Procedure, and in a form which substantially
18-10 conforms to the requirements of Subsection (d) of this section, to
18-11 all persons who were defendants to the judgment, or their attorney,
18-12 and the officer shall advertise the time and place of the sale by
18-13 having the notice thereof published in the English language a
18-14 minimum of one time in some newspaper published in the county where
18-15 the sale is to occur. One such notice must appear in the
18-16 publication not less than 20 days immediately preceding the day of
18-17 sale. Neither the officer's failure to send nor a defendant's
18-18 failure to receive the written notice of sale shall, standing
18-19 alone, invalidate the sale or the title conveyed by the sale.
18-20 (d) The notice of sale required by Subsection (c) of this
18-21 section may contain one or more properties foreclosed by a single
18-22 judgment or one or more properties foreclosed by multiple judgments
18-23 in more than one cause of action, and shall contain a statement of
18-24 the authority by virtue of which the sale is to be made, the date,
18-25 time and place of sale, and a brief description of the property to
19-1 be sold. In describing the property, the notice is sufficient by
19-2 giving the number of acres and original survey, or, if within a
19-3 platted subdivision or addition, whether recorded or not, by giving
19-4 the name by which the land is generally known with reference to
19-5 that subdivision or addition, or by adopting the description as
19-6 contained in the judgment. It is not required that the notice
19-7 contain field notes in describing the property. Publishers of
19-8 newspapers publishing the notice shall charge the rate of Two (2)
19-9 Cents per word for the publication, or such newspapers shall be
19-10 entitled to charge for such publication at a rate equal to but not
19-11 in excess of the published word or line rate of that newspaper for
19-12 such class of advertising. If there be no newspaper published in
19-13 the county of the sale, or none which will publish the notice of
19-14 sale for the compensation herein fixed, the officer shall then post
19-15 such notice in writing in three public places in the county, one of
19-16 which shall be at the courthouse door of such county, for at least
19-17 twenty days successively next before the day of sale.
19-18 (e) [(b)] The owner of real property subject to the sale may
19-19 file with the officer charged with the sale a written request that
19-20 the property be divided and that only as many portions be sold as
19-21 is necessary to pay the [tax, penalties, interest and costs
19-22 adjudged due against the property] amount due as calculated in
19-23 subsection (b) above. In the request the owner shall describe the
19-24 desired portions and shall specify the order in which the portions
19-25 should be sold, provided however, that the owner may not specify
20-1 portions which divide buildings or other contiguous improvements or
20-2 specify more than four (4) portions, and such request must be
20-3 delivered to the officer not less than seven (7) days prior to the
20-4 date of the sale.
20-5 (f) [(c)] If a sufficient bid is not received[,] to pay the
20-6 amount calculated under Subsection (b) of this section or the
20-7 adjudged value, whichever is less, the taxing unit that requested
20-8 the order of sale may terminate the sale at that time. If the
20-9 taxing unit does not terminate the sale, the officer making the
20-10 sale shall bid the property off to the [a] taxing unit that
20-11 requested the order of sale, unless otherwise agreed by all of the
20-12 taxing units that are parties to the judgment, [is a party to the
20-13 judgment] for the aggregate amount of the judgment against the
20-14 property or for the market value of the property as specified in
20-15 the judgment, whichever is less. The duty of the officer to bid
20-16 off the property to a taxing unit under this Subsection is
20-17 self-executing, and the actual attendance of a taxing unit
20-18 representative at the sale is not a prerequisite to that duty. The
20-19 taxing unit takes title to the property for the use and benefit of
20-20 itself and all other taxing units that established tax liens in the
20-21 suit. The taxing unit's title includes all the interest owned by
20-22 the defendant, including the defendant's right to the use and
20-23 possession of the property, subject only to the defendant's right
20-24 of redemption. Payments in satisfaction of the judgment and any
20-25 costs or expenses of sale may not be required of the purchasing
21-1 taxing unit until the property is redeemed or resold by the
21-2 [purchasing] taxing unit. Notwithstanding that the property has
21-3 been bid off to a taxing unit as herein provided, a taxing unit
21-4 that established tax liens in the suit may continue to enforce
21-5 collection of any amount due from the owner(s), including any
21-6 post-judgment taxes, penalties and interest assessed by the taxing
21-7 unit against the property, in any other manner or by pursuing any
21-8 other remedy provided by law.
21-9 (g) [(d)] The officer making the sale shall prepare a deed
21-10 to the purchaser of real property at the sale, [or] to any other
21-11 person whom the purchaser may specify[.] , or to the taxing unit if
21-12 the property was bid off. The taxing unit that requested the order
21-13 of sale may elect to prepare a deed for execution by the officer.
21-14 The officer shall execute the deed and file the deed for recording
21-15 with the county clerk with instructions to the county clerk to
21-16 return the deed after recording to the grantee. The county clerk
21-17 shall file and record all such deeds without imposing any recording
21-18 or other fees. The deed vests good and perfect title in the
21-19 purchaser or the purchaser's assigns to the interest owned by the
21-20 defendant in the property subject to the foreclosure, including the
21-21 defendant's right to the use and possession of the property,
21-22 subject only to the defendant's right of redemption, the terms and
21-23 provisions of any recorded restrictive covenants running with the
21-24 land, if such covenants were recorded prior to January 1 of the
21-25 year the tax lien arose, any recorded lien arising under those
22-1 restrictive covenants unless the same was extinguished in the
22-2 judgment foreclosing the tax liens, and valid easements of record
22-3 as of the date of the sale, if such covenants or easements were
22-4 recorded prior to January 1 of the year the tax lien arose. The
22-5 deed may be impeached only for fraud.
22-6 (h) [(e)] Notwithstanding Subsection (f) [(c)], if a
22-7 sufficient bid is not received, the officer making the sale may bid
22-8 property seized under Subchapter E, Chapter 33, off to a person
22-9 described by Section 11.181 for less than the tax warrant amount or
22-10 the market value of the property. Consent to the sale by the
22-11 taxing units entitled to receive proceeds of the sale is not
22-12 required.
22-13 (I) [(f)] Except as provided in Subsection (h) [(e)],
22-14 property seized under Subchapter E, Chapter 33, may not be sold for
22-15 an amount that is less than the lesser of the market value of the
22-16 property or the total amount of taxes due on the property. A
22-17 taxing unit that takes title to property seized under that
22-18 subchapter takes title to the property for the use and benefit of
22-19 that taxing unit and all other taxing units that established tax
22-20 liens in the suit or that, on the date of the seizure, were owed
22-21 delinquent taxes on the property.
22-22 (j) A sale of real property under this section shall take
22-23 place at the county courthouse in the county in which the land is
22-24 located. The sale shall occur in the same area of the courthouse
22-25 as designated by the commissioners court of the county for the sale
23-1 of real property pursuant to Section 51.002, Property Code.
23-2 (k) To the extent that the rules governing executions under
23-3 the Texas Rules of Civil Procedure are in conflict with this
23-4 section, the provisions of this section prevail and govern the
23-5 duties of the officer conducting the sale.
23-6 SECTION 24. Subsection (a), Section 34.015, Tax Code, is
23-7 amended to read as follows:
23-8 Sec. 34.015. ALTERNATE MANNER OF SALE. (a) Notwithstanding
23-9 any other provision of this subchapter, the governing body of a
23-10 municipality may provide for the manner in which land acquired by
23-11 the municipality following the foreclosure of a tax lien or by
23-12 seizure in favor of the municipality may be sold if the land is
23-13 sold to:
23-14 (1) a nonprofit organization that develops housing for
23-15 low income individuals and families as a primary activity to
23-16 promote community-based revitalization of the municipality; or
23-17 (2) a nonprofit corporation described by 26 U.S.C.
23-18 Section 501(c)(3) that:
23-19 (A) has been incorporated in this state for at
23-20 least one year;
23-21 (B) has a corporate purpose to develop
23-22 affordable housing that is stated in its articles of incorporation,
23-23 bylaws, or charter;
23-24 (c) has at least one-fourth of its board of
23-25 directors residing in the municipality; and
24-1 (D) engages primarily in the building, repair,
24-2 rental, or sale of housing for low income individuals or families.
24-3 SECTION 25. Subsections (a), (b) and (c), Section 34.02, Tax
24-4 Code, are amended to read as follows:
24-5 Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of
24-6 a tax sale pursuant to Section 33.94 or Section 34.01 shall be
24-7 applied [first to the payment of costs] in the following order.
24-8 Each category must be fully paid before any funds shall be
24-9 allocated to the following category: [The remainder shall be
24-10 distributed to all taxing units participating in the sale in
24-11 satisfaction of the taxes, penalties, and interest due each.]
24-12 (1) all costs of advertising the sale and all original
24-13 court costs due to the clerk of the court;
24-14 (2) all fees and commissions due to the officer
24-15 conducting the sale;
24-16 (3) taxes, penalties and interest due pursuant to the
24-17 judgment;
24-18 (4) amounts awarded to any taxing unit in the judgment
24-19 for a claim other than taxes, penalties or interest.
24-20 (b) If the proceeds are not sufficient to pay the total
24-21 amount due for any one of the four categories in Subsection (a) of
24-22 this section, [costs and taxes, penalties, and interest due all
24-23 participants in the sale] each participant in each category is
24-24 entitled to a share of the proceeds [after payment of costs] in an
24-25 amount equal to the proportion its entitlement [taxes, penalties,
25-1 and interest] bears to the total amount of that category. [taxes,
25-2 penalties, and interest due all participants in the sale.]
25-3 (c) If the sale is pursuant to foreclosure of a tax lien,
25-4 the officer conducting the sale shall pay any excess proceeds after
25-5 payment of all amounts [costs and of all taxes, penalties, and
25-6 interest] due all participants in the sale as set out in Subsection
25-7 (b) to the clerk of the court issuing the order of sale.
25-8 SECTION 26. Subsections (a) and (b), Section 34.03, Tax
25-9 Code, are amended to read as follows:
25-10 (a) The clerk of the court shall keep the excess proceeds
25-11 paid into court as provided by [Subsection (c) of] Section 34.02(c)
25-12 [34.02 of this code] for a period of two [seven] years after the
25-13 date of the sale unless otherwise ordered by the court.
25-14 (b) If no claimant [establishes entitlement to] files a
25-15 petition claiming the proceeds as provided in Section 34.04 within
25-16 two [seven] years from the date of the sale, the clerk shall
25-17 distribute the excess proceeds to each taxing unit participating in
25-18 the sale in an amount equal to the proportion its taxes, penalties,
25-19 and interests bear to the total amount of taxes, penalties, and
25-20 interest due all participants in the sale.
25-21 SECTION 27. Section 34.04, Tax Code, is amended to read as
25-22 follows:
25-23 Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (a) A person,
25-24 including any taxing unit, may file a petition in the court that
25-25 ordered the sale or seizure, setting forth a claim to the excess
26-1 proceeds within two [seven] years from the date of the sale of the
26-2 property. The petition need not be filed as a new lawsuit,
26-3 separate from the underlying action ordering seizure or foreclosing
26-4 the tax lien, but may be filed under the same cause number.
26-5 (b) A copy of the petition shall be served, pursuant to Rule
26-6 21a, Texas Rules of Civil Procedure, on [the county attorney or, if
26-7 there is no county attorney, the district attorney and on] all
26-8 parties to the underlying action [suit that ordered the sale, if
26-9 any,] not later than the 20th day before the date set for a hearing
26-10 on the petition.
26-11 (c) At the hearing [if] the court [finds that the claimant
26-12 is entitled to recover the excess proceeds, it] shall order that
26-13 the proceeds be paid in accordance with the following priorities to
26-14 those parties who may establish their claim: [to him. Interest or
26-15 costs may not be allowed.]
26-16 (1) to the taxing units for any taxes, penalties and
26-17 interest that have become due or delinquent on the property that
26-18 was the subject of the order of sale or seizure since the date of
26-19 the judgment;
26-20 (2) to any other lienholder, consensual or otherwise,
26-21 for the amount due under any lien, pursuant to the priority
26-22 established by the applicable law;
26-23 (3) to the taxing units for any unpaid taxes,
26-24 penalties and interest or other amounts adjudged due under the
26-25 judgment and unsatisfied by the tax sale;
27-1 (4) to the owner(s) of the property.
27-2 (d) Interest or costs may not be allowed. [A claim for the
27-3 excess proceeds may not be filed after the expiration of seven
27-4 years from the date the property is sold.]
27-5 SECTION 28. Subsection (a), Section 34.05, Tax Code, as
27-6 amended by Acts 1997, 75th Legislature, ch. 906, Section 9, is
27-7 repealed.
27-8 SECTION 29. Subsections (c) and (d), Section 34.05, Tax
27-9 Code, are amended to read as follows:
27-10 (c) The taxing unit purchasing the property by resolution of
27-11 its governing body may request the sheriff or constable to sell the
27-12 property at a public sale. If the purchasing taxing unit has not
27-13 sold the property within six months after the date on which the
27-14 owner's right of redemption terminates, any taxing unit that is
27-15 entitled to receive proceeds of the sale by resolution of its
27-16 governing body may request the sheriff or constable in writing to
27-17 sell the property at a public sale. On receipt of a request made
27-18 under this subsection, the sheriff or constable shall sell the
27-19 property as provided by Subsection (d) of this section, unless the
27-20 property is sold pursuant to Subsection (h) or (I) of this section
27-21 before the date set for the public sale.
27-22 (d) Except as provided by this subsection, all public sales
27-23 requested as provided by Subsection (c) of this section shall be
27-24 conducted in the manner prescribed by the Rules of Civil Procedure
27-25 for the sale of property under execution. The notice of the sale
28-1 must contain a description of the property to be sold, which must
28-2 be a legal description in the case of real property, the number and
28-3 style of the suit under which the property was sold at the tax
28-4 foreclosure sale, and the date of the tax foreclosure sale. If the
28-5 commissioners court of a county by order specifies the date or time
28-6 at which or location in the county where a public sale requested
28-7 under Subsection (c) shall be conducted, the sale shall be conduct
28-8 on the date and at the time and location specified in the order.
28-9 The acceptance of a bid by the officer conducting the sale is
28-10 conclusive and binding on the question of its sufficiency. An
28-11 action to set aside the sale on the grounds that the bid is
28-12 insufficient may not be sustained in court, except that a taxing
28-13 unit that participates in distribution of proceeds of the sale may
28-14 file an action within one year after the date of the sale to set
28-15 aside the sale on the grounds of fraud or collusion between the
28-16 officer making the sale and the purchaser. Upon conclusion of the
28-17 sale, the officer making the same shall prepare a deed to the
28-18 purchaser, and shall execute the deed and file it for recording
28-19 with the county clerk accompanied by instructions to the clerk to
28-20 return the deed to the purchaser following its recordation. The
28-21 taxing unit that requested the sale may elect to prepare a deed for
28-22 execution by the officer. The county clerk shall file and record
28-23 all such deeds without imposing any recording or other fees.
28-24 SECTION 30. Subsection (g), Section 34.05, Tax Code, as
28-25 amended by Acts 1997, 75th Legislature, ch. 712, Sec. 3 and by ch.
29-1 906, Sec. 9, is repealed.
29-2 SECTION 31. Subsection (h), Section 34.05, Tax Code, as
29-3 added by Acts 1997, 75th Legislature, ch.712, Sec. 4, is amended so
29-4 as to redesignate it as Subsection (g), and to read as follows:
29-5 (g) [(h)] A taxing unit to which property is bid off [in]
29-6 may recover its costs of upkeep, maintenance, and environmental
29-7 cleanup from the resale proceeds without further court order.
29-8 SECTION 32. Subsection (b), Section 34.06, Tax Code, is
29-9 amended; Subsection (c), Section 34.06, Tax Code, is amended and,
29-10 as amended, redesignated as Subsection (d); and a new Subsection
29-11 (c), Section 34.06, Tax Code, is added, to read as follows:
29-12 (b) The proceeds of a resale shall be distributed as
29-13 follows:
29-14 (1) First, the purchasing taxing unit shall recover
29-15 its reasonable costs, as defined under Section 34.21 of this code,
29-16 incurred for the maintenance, preservation and safekeeping of the
29-17 property, its expenses in marketing the property for resale, and
29-18 its expenses set out under Subsection (d) of this section;
29-19 (2) Second, the purchasing taxing unit shall pay all
29-20 costs of the officer conducting the sale and of the clerk of the
29-21 court in connection with the suit and the sale;
29-22 (3) The balance, if any, after the payment of the
29-23 expenses set out in (1) and (2) of this Subsection shall be paid to
29-24 the participating taxing units in shares equal to the proportion
29-25 each taxing unit's taxes, penalties and interest bear to the total
30-1 amount of taxes, penalties and interest adjudged due all
30-2 participants in the sale.
30-3 (c) The previous owner(s) shall not be entitled to receive
30-4 any proceeds from the resale of the property.
30-5 (d) [(c) Notwithstanding Subsection (b), t] The purchasing
30-6 taxing unit is entitled to recover from the proceeds of a resale of
30-7 the property any cost incurred by the taxing unit in inspecting the
30-8 property to determine whether there is a release or threatened
30-9 release of solid waste from the property in violation of Chapter
30-10 361, Health and Safety Code, or a rule adopted or permit or order
30-11 issued by the Texas Natural Resource Conservation Commission under
30-12 that chapter, or a discharge or threatened discharge of waste or a
30-13 pollutant into or adjacent to water in this state from a point of
30-14 discharge on the property in violation of Chapter 26, Water Code,
30-15 or a rule adopted or permit or order issued by the commission under
30-16 that chapter, and in taking action to remove or remediate the
30-17 release or threatened release or discharge or threatened discharge
30-18 regardless of whether the taxing unit:
30-19 (1) was required by law to incur the cost; or
30-20 (2) obtained the consent of each taxing unit entitled
30-21 to receive proceeds of the sale under the judgment of foreclosure
30-22 to incur the cost.
30-23 SECTION 33. Subsection (b), Section 34.06, Tax Code, as
30-24 amended by Acts 1997, 75th Legislature, ch. 906, Sec. 10, is
30-25 repealed.
31-1 SECTION 34. Subsection (b), Section 34.06, Tax Code, as
31-2 amended by Acts 1997, 75th Legislature, ch. 914, Sec. 3, is
31-3 repealed.
31-4 SECTION 35. Subsections (a), (b), (c) and (d), Section
31-5 34.07, Tax Code, are amended to read as follows:
31-6 Sec. 34.07 SUBROGATION OF PURCHASER AT VOID SALE. (a) The
31-7 purchaser at a void or defective tax sale or tax resale is
31-8 subrogated to the rights of the taxing unit in whose behalf the
31-9 property was sold or resold to the same extent a purchaser at a
31-10 void or defective sale conducted in behalf of a judgment creditor
31-11 is subrogated to the rights of the judgment creditor.
31-12 (b) Except as provided by Subsection (c) of this section,
31-13 the purchaser at a void or defective tax sale or tax resale is
31-14 subrogated to the tax lien of the taxing unit in whose behalf the
31-15 property was sold or resold to the same extent a purchaser at a
31-16 void or defective mortgage or other lien foreclosure sale is
31-17 subrogated to the lien of the lienholder, and the purchaser is
31-18 entitled to a reforeclosure of the lien to which the purchaser [he]
31-19 is subrogated.
31-20 (c) If the purchaser at a void or defective tax sale or tax
31-21 resale paid less than the total amount of the judgment against the
31-22 property, the purchaser [he] is subrogated to the tax lien only in
31-23 the amount actually [he] paid at the sale or resale.
31-24 (d) In lieu of the purchaser pursuing the subrogation rights
31-25 provided by this section [to which he is subrogated], a purchaser
32-1 at a void tax sale may elect to file an action against the taxing
32-2 units to which the proceeds of the sale were distributed to recover
32-3 the amount paid at the sale. A purchaser who files a suit
32-4 authorized by this subsection waives all rights of subrogation [to
32-5 which he would] otherwise [be subrogated] provided by this section.
32-6 If the purchaser prevails in any such suit, the court shall
32-7 expressly provide in its final judgment that the tax sale is
32-8 vacated and set aside and that all liens are restored and
32-9 reinstated on the property effective as of the date on which the
32-10 liens originally attached.
32-11 SECTION 36. Subsections (a) and (b), Section 34.21, Tax
32-12 Code, as amended by Acts 1997, 75th Legislature, ch. 906, Sec. 11,
32-13 and by Acts 1997, 75th Legislature, ch 914, are amended to read as
32-14 follows:
32-15 (a) The owner of real property sold at a tax sale to a
32-16 purchaser other than a taxing unit and that was used as the
32-17 residence homestead of the owner or that was land designated for
32-18 agricultural use when the suit or application for warrant was filed
32-19 [judgment in the suit to collect the tax was rendered or when the
32-20 tax warrant was issued] may redeem the property within two years
32-21 after the date on which the purchaser's deed is filed for record by
32-22 paying the purchaser the amount the purchaser bid for the property,
32-23 the amount of the deed recording fee, and the amount paid by the
32-24 purchaser as taxes, penalties, interest, and costs on the property,
32-25 plus a redemption premium of 25 percent of the aggregate total if
33-1 the property is redeemed during the first year of the redemption
33-2 period or 50 percent of the aggregate total if the property is
33-3 redeemed during the second year of the redemption period.
33-4 (b) If property that was used as the owner's residence
33-5 homestead or was land designated for agricultural use when the suit
33-6 or application for warrant [to collect the tax] was filed is bid
33-7 off to a taxing unit under Section 34.01 (f) [(c)] and has not been
33-8 resold by the taxing unit, the owner having a right of redemption
33-9 may redeem the property within two years after the date on which
33-10 the deed of the taxing unit is filed for record by paying the
33-11 taxing unit the amount of the judgment against the property or the
33-12 market value of the property as specified in that judgment,
33-13 whichever is less, plus the amount of the fee for filing the taxing
33-14 unit's deed and the amount expended by the taxing unit as costs on
33-15 the property.
33-16 SECTION 37. Subsection (b), Section 34.21, Tax Code, as
33-17 amended by Acts 1997, 75th Legislature, ch. 914, Sec. 4, is
33-18 repealed.
33-19 SECTION 38. Subsections (c) and (d), Section 34.21, Tax
33-20 Code, are amended to hereafter read as follows:
33-21 (c) If real property that was used as the owner's residence
33-22 homestead or was land designated for agricultural use when the suit
33-23 or application for warrant [to collect the tax] was filed has been
33-24 resold by the taxing unit under Section 34.05, the owner of the
33-25 property having a right of redemption may redeem the property
34-1 within two years after the date on which the taxing unit files for
34-2 record the deed from the sheriff or constable by:
34-3 (1) paying the person who purchased the property from
34-4 the taxing unit the amount the purchaser paid for the property, the
34-5 amount of the fee for filing the purchaser's deed of record, the
34-6 amount paid by the purchaser as taxes, penalties, interest and
34-7 costs on the property, plus a redemption premium of 25 percent of
34-8 the aggregate total if the property is redeemed in the first year
34-9 of the redemption period or 50 percent of the aggregate total if
34-10 the property is redeemed in the second year of the redemption
34-11 period; and[.]
34-12 (2) If the amount paid under part (1) above is less
34-13 than the amount of the judgment under which the property was sold,
34-14 the owner shall pay to the taxing unit to which the property was
34-15 bid off under Section 34.01 the difference between the amount paid
34-16 under part (1) above and that judgment amount and shall provide to
34-17 the person from whom the property is redeemed a receipt showing
34-18 such payment. The taxing unit to which any such sums are paid shall
34-19 distribute those sums to each taxing unit which participated in the
34-20 judgment and sale in an amount equal to the proportion each
34-21 participant's judgment amount bears to the total amount of the
34-22 aggregate judgments of the participating taxing units.
34-23 (d) The owner of real property sold at a tax sale other than
34-24 property that was used as the residence homestead of the owner or
34-25 that was land designated for agricultural use when the suit or
35-1 application for warrant [to collect the tax] was filed may redeem
35-2 the property in the same manner and by paying the same amounts as
35-3 prescribed by Subsection (a), (b) or (c), as applicable, except
35-4 that:
35-5 (1) the owner's right of redemption may be exercised
35-6 no later than 180 days following the date on which the purchaser's
35-7 or taxing unit's deed is filed for record; and
35-8 (2) the redemption period premium payable by the owner
35-9 to a purchaser other than a taxing unit shall not exceed 25
35-10 percent.
35-11 SECTION 39. Subsection (e) of Section 34.21, Tax Code, as
35-12 amended by Acts 1997, 75th Legislature, ch. 1111, Sec. 6, is
35-13 amended so as to redesignate it as Subsection (f) and to read as
35-14 follows:
35-15 (f) [(e)] In this section: (1) "Land designated for
35-16 [A]agricultural use" [has the meaning assigned by Section 23.51.]
35-17 means land for which an application for appraisal under Subchapter
35-18 C or D, Chapter 23 of this code has been approved by final
35-19 determination.
35-20 (2) "Costs" includes the amount reasonably spent by
35-21 the purchaser for the maintenance, preservation, and safekeeping of
35-22 the property, including the cost of:
35-23 (A) property insurance;
35-24 (B) repairs or improvements required by a local
35-25 ordinance of building code or by a lease of the property in effect
36-1 on the date of the sale;
36-2 (C) discharging a lien imposed by a municipality
36-3 to secure expenses incurred by the municipality in remedying a
36-4 health or safety hazard on the property;
36-5 (D) dues or assessments for maintenance paid to
36-6 a property owners' association under a recorded restrictive
36-7 covenant to which the property is subject; and
36-8 (E) impact or standby fees imposed under the
36-9 Local Government Code or Water Code and paid to a political
36-10 subdivision.
36-11 (1) "Purchaser" includes a taxing unit to which
36-12 property is bid off under Section 34.01[(e)].
36-13 (2) "Residence homestead" has the meaning assigned by
36-14 Section 11.13.
36-15 SECTION 40. Subsections (g), (h) and (I), Section 34.21, Tax
36-16 Code, as amended by Acts 1997, 75th Legislature, ch. 906, are
36-17 repealed.
36-18 SECTION 41. Section 34.21, Tax Code, is amended by adding
36-19 Subsection (g) to read as follows:
36-20 (g) An owner who wishes to redeem a property under this
36-21 section may make a written request to the purchaser, or to the
36-22 taxing unit to which the property was bid off, for a written
36-23 itemization of all sums spent by that purchaser or taxing unit in
36-24 costs on the property. The owner's request shall be sent to the
36-25 purchaser at the address shown for the purchaser in the purchaser's
37-1 deed for the property in question or, if redeeming from the taxing
37-2 unit, to the business address of the taxing unit's tax
37-3 assessor-collector. The purchaser, or the tax assessor-collector,
37-4 as applicable, shall itemize all sums expended on the property in
37-5 costs and provide the same to the owner in writing within ten days
37-6 of receiving the written request for same. Delivery of the
37-7 itemization to the owner may be made by depositing the same in the
37-8 United States mail, postage prepaid, and addressed to the owner at
37-9 the address provided in the owner's written request. Following a
37-10 written request for itemization of costs, only those sums itemized
37-11 and provided to an owner under this Subsection shall be allowed as
37-12 costs for purposes of redemption.
37-13 SECTION 42. Subsection (f), Section 34.21, Tax Code, as
37-14 amended by Acts 1997, 75th Leg., ch. 906, is amended so as to
37-15 redesignate it as Subsection (h) and to read as follows:
37-16 (h) [(f)] The right of redemption does not grant or reserve
37-17 in the former owner of the real property the right to the use or
37-18 possession of the property, or to receive rents, income, or other
37-19 benefits from the property while the right of redemption exists.
37-20 Section 43. Subsection (b), Sec. 42.031, Tax Code is amended
37-21 to read of follows: (b) A taxing unit may not intervene in or in
37-22 any other manner be made a party, whether as defendant or
37-23 otherwise, to an appeal of an order of the appraisal review board
37-24 determining a taxpayer protest under Subchapter C, Chapter 41, if
37-25 the appeal was brought by the property owner.
38-1 Section 44. Section 304.301, Texas Finance Code, is amended
38-2 to read as follows:
38-3 Sec. 304.301. This chapter does not apply to a judgment that
38-4 earns interest at a rate set by Title 1 or Title 2, Tax Code.
38-5 SECTION 45. Part 4, Chapter VIII, Probate Code, is amended
38-6 by adding Section 313A to read as follows:
38-7 313A. AD VALOREM TAX CLAIMS. If a decedent's estate being
38-8 administered in a pending probate proceeding owns or claims an
38-9 interest in property against which there are delinquent ad valorem
38-10 tax claims held by a taxing unit, then notwithstanding any
38-11 provisions in this code to the contrary, the court with
38-12 jurisdiction over an action for collection of the taxes shall be as
38-13 follows:
38-14 (a) If the probate is pending in a county or foreign
38-15 jurisdiction other than the county in which the taxes were imposed,
38-16 exclusive jurisdiction and mandatory venue is with a court of
38-17 competent jurisdiction in the county in which the taxes were
38-18 imposed, as provided by Section 33.41(a), Tax Code.
38-19 (b) If the probate is pending in the same county in which
38-20 the taxes were imposed, and has been pending for a period of four
38-21 years or less, the tax claims may be formally presented to the
38-22 personal representative of the estate in the probate proceeding.
38-23 If so presented, the tax claims become subject to allowance or
38-24 rejection, in whole or in part, and to all other applicable
38-25 provisions under Part 4 and Part 5, Chapter VIII of this code
39-1 relating to claims and their enforcement in the probate proceeding.
39-2 The taxing unit is not required to make any presentment of its tax
39-3 claims in the probate proceeding, but it may not otherwise proceed
39-4 with enforcing collection by resorting to any court other than the
39-5 court of original probate jurisdiction until after a period of four
39-6 years has elapsed from the time the probate proceeding was
39-7 commenced.
39-8 (c) If the probate has been pending for a period of more
39-9 than four years in the same county in which the taxes were imposed,
39-10 and there has been neither a formal presentment of an authenticated
39-11 claim for delinquent taxes nor an order of the court exercising
39-12 probate jurisdiction which authorizes payment of the delinquent
39-13 taxes, jurisdiction over an action by the taxing unit to recover
39-14 the taxes is with the district court or the county court at law,
39-15 pursuant to Section 33.41(a), Tax Code, rather than with the court
39-16 of original probate jurisdiction. The taxing unit shall make the
39-17 personal representative of the decedent's estate a party to any
39-18 such action, and the taxing unit's remedy in its suit shall be
39-19 limited to foreclosure of the tax liens against the specific
39-20 property securing the liens.
39-21 SECTION 46. Subsection (c) of Section 317, Probate Code, is
39-22 amended to read as follows:
39-23 (c) Provisions not applicable to certain claims. The
39-24 foregoing provisions relative to the presentment of claims shall
39-25 not be so construed as to apply to:
40-1 (1) the claim of any heir, devisee, or legatee who
40-2 claims in such capacity, [or]
40-3 (2) [to] any claim that accrues against the estate
40-4 after the granting of letters for which the representative of the
40-5 estate has contracted[.] ,
40-6 (3) any claim for delinquent ad valorem taxes against
40-7 a decedent's estate being administered in probate in a county other
40-8 than the county in which the tax was imposed, or
40-9 (4) any claim for delinquent ad valorem taxes against
40-10 a decedent's estate being administered in the same county in which
40-11 the tax was imposed if the probate proceeding has been pending for
40-12 a period of more than four years.
40-13 SECTION 47. Section 801, Probate Code, is amended to read as
40-14 follows:
40-15 Section 801. PRESENTMENT OF CLAIMS A PREREQUISITE FOR
40-16 JUDGMENT. A judgment may not be rendered in favor of a claimant on
40-17 any claim for money that has not been legally presented to the
40-18 guardian of the estate of the ward and rejected by the guardian or
40-19 by the court, in whole or in part [.] , provided however that this
40-20 provision shall not be so construed as to apply to any claim for
40-21 delinquent ad valorem taxes against a ward's estate being
40-22 administered in probate in a county other than the county in which
40-23 the tax was imposed.
40-24 SECTION 48. Article 1396-2.07, Texas Civil Statutes, is
40-25 amended to add Subpart D to read as follows:
41-1 D. In the event that a corporation loses its privileges, by
41-2 forfeiture pursuant to Texas Tax Code Section 171.251 or by
41-3 involuntary dissolution pursuant to Article 7.01, Texas Business
41-4 Corporation Act, service of any process, notice, or demand required
41-5 or permitted by law upon the corporation may be had by delivery of
41-6 the process, notice, or demand, to the president, vice president,
41-7 or any officer or director of the corporation as listed in the most
41-8 recent records of the Secretary of State. If the officers or
41-9 directors of the corporation are unknown or cannot be located,
41-10 service may be obtained upon the corporation in the same manner as
41-11 service on unknown stockholders is allowed by law. Service of
41-12 process pursuant to this section shall be sufficient to support a
41-13 judgment, in personam or in rem, against such corporation and any
41-14 property to which the corporation holds title, notwithstanding any
41-15 disability or reinstatement of the corporation.
41-16 SECTION 49. Article 2.11, Texas Business Corporation Act, is
41-17 amended to add Subpart D to read as follows:
41-18 D. In the event that a corporation loses its privileges, by
41-19 forfeiture pursuant to Texas Tax Code Section 171.251, or by
41-20 involuntary dissolution pursuant to Article 7.01, Texas Business
41-21 Corporation Act, service of any process, notice, or demand required
41-22 or permitted by law upon the corporation may be had by delivery of
41-23 the process, notice, or demand, to the president, vice president,
41-24 or any officer or director of the corporation as listed in the most
41-25 recent records of the Secretary of State. If the officers or
42-1 directors of the corporation are unknown or cannot be located,
42-2 service may be obtained upon the corporation in the same manner as
42-3 service on unknown stockholders is allowed by law. Service of
42-4 process pursuant to this section shall be sufficient to support a
42-5 judgment, in personam or in rem, against such corporation and any
42-6 property to which the corporation holds title, notwithstanding any
42-7 disability or reinstatement of the corporation.
42-8 SECTION 50. Article 8.10, Texas Business Corporation Act, is
42-9 amended to add Subpart E to read as follows:
42-10 E. In the event that a corporation loses its privileges, by
42-11 forfeiture pursuant to Texas Tax Code Section 171.251 or by
42-12 involuntary dissolution pursuant to Article 7.01, Texas Business
42-13 Corporation Act, service of any process, notice, or demand required
42-14 or permitted by law upon the corporation may be had by delivery of
42-15 the process, notice, or demand, to the president, vice president,
42-16 or any officer or director of the corporation as listed in the most
42-17 recent records of the Secretary of State. If the officers or
42-18 directors of the corporation are unknown or cannot be located,
42-19 service may be obtained upon the corporation in the same manner as
42-20 service on unknown stockholders is allowed by law. Service of
42-21 process pursuant to this section shall be sufficient to support a
42-22 judgment, in personam or in rem, against such corporation and any
42-23 property to which the corporation holds title, notwithstanding any
42-24 disability or reinstatement of the corporation.
42-25 SECTION 51. Subsections (j), (k) and (l), Section 49.231,
43-1 Water Code are amended, and new Subsections (o) and (p) are added,
43-2 to read as follows:
43-3 (j) The board may:
43-4 (1) charge interest[,] at the rate of one percent a
43-5 month and may impose a penalty [,] on a standby fee not paid in a
43-6 timely manner in accordance with the resolution or order imposing
43-7 the standby fee; and
43-8 (2) refuse to provide potable water, sanitary sewer,
43-9 or drainage service to the property for which the fee was assessed
43-10 until all delinquent standby fees on the property , [and] plus
43-11 interest, and penalty on those fees are fully paid.
43-12 (k) A standby fee imposed under this section is a personal
43-13 obligation of the person owning the undeveloped property on January
43-14 1 of the year for which the fee is assessed. A person is not
43-15 relieved of the obligation on transfer of title to the property.
43-16 On January 1 of each year, a lien attaches to undeveloped property
43-17 to secure payment of any standby fee imposed under this section,
43-18 [and] plus interest, and penalty, if any, on the fee.
43-19 (l) If a standby fee imposed under this section is not paid
43-20 in a timely manner, a district may file suit to foreclose the lien
43-21 securing payment of the fee, [and] interest, and penalty or to
43-22 enforce the personal obligation of the fee, [and] interest, and
43-23 penalty, or both. The district may recover, in addition to the
43-24 fee, [and] interest, and penalty, reasonable costs, including
43-25 attorney's fees, incurred by the district in enforcing the lien or
44-1 obligation not to exceed 20 percent of the delinquent fee, [and]
44-2 interest, and penalty. A suit authorized by this subsection must
44-3 be filed not later than the fourth anniversary of the date the fee
44-4 became due. A fee delinquent for more than four years , [and]
44-5 interest, and penalty on the fee are considered paid unless a suit
44-6 is filed before the expiration of the four-year period.
44-7 (o) The penalty provided by Subsection (j) of this section
44-8 is in the amount of six percent of the amount of the fee for the
44-9 first calendar month it is delinquent plus one percent for each of
44-10 the following four months or portion of any of such months the fee
44-11 remains unpaid. However, a fee remaining unpaid on the first day
44-12 of the sixth month following the month in which it was due incurs a
44-13 total maximum penalty of twelve percent of the amount of the fee.
44-14 (p) The board may further provide, in accordance with the
44-15 resolution or order imposing the standby fee, that a fee not paid
44-16 in a timely manner is further subject to an additional penalty to
44-17 defray costs of collection if the district has contracted with an
44-18 attorney for the collection, whether by suit or otherwise, of past
44-19 due fees. The amount of the additional penalty may not exceed
44-20 fifteen percent of the amount of fees, interest and penalty due,
44-21 and the penalty may only be imposed if notice of the penalty is
44-22 given by the district or by its attorney to the property owner at
44-23 least 30 and not more than 60 days prior to the date it is
44-24 incurred. With regards to fees imposed for the year 2000 and
44-25 subsequent years, the penalty is incurred on the first day of the
45-1 sixth month following the month in which the fee was due. With
45-2 regard to fees imposed for the years 1999 and prior thereto, the
45-3 penalty is incurred on the date set by the board. A district may
45-4 not recover both the additional penalty provided by this
45-5 Subsection and the attorney fees provided by Subsection (l) of this
45-6 section.
45-7 SECTION 52. Sections 1, 2, 3, 4, 5, 6, 8, 9, 11, 13 and 51
45-8 of this Act take effect January 1, 2000.
45-9 SECTION 53. Sections 7, 10, 12, 14, 15, 16, 17, 18, 19, 20,
45-10 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37,
45-11 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49 and 50 of this Act
45-12 take effect September 1, 1999.
45-13 SECTION 54. The change in law made by Section 7 of this Act
45-14 applies only to a refund the liability for which arises on or after
45-15 September 1, 1999. A refund for which the liability arose before
45-16 September 1, 1999 is governed by the law in effect when the
45-17 liability arose, and the former law is continued in effect for
45-18 that purpose.
45-19 SECTION 55. The change in law made by Section 9 of this Act
45-20 applies to all liens for which notice may be filed with the
45-21 department on or after January 1, 2000. Liens for which notices
45-22 could be filed before January 1, 2000 are governed by the law in
45-23 effect as of the last date on which the notice of lien could be
45-24 filed, and the former law is continued in effect for that purpose.
45-25 SECTION 56. The change in law made by Section 13 of this Act
46-1 applies to the notice required to be given by Section 33.04(b), Tax
46-2 Code, in the year 2000 and thereafter. Penalties and interest on a
46-3 delinquent tax are not canceled under Section 33.04 for failure to
46-4 deliver a notice required by Section 33.04(b), as it existed before
46-5 the effective date of this Act, if the notice is not required by
46-6 Section 33.04(b), as amended by this Act.
46-7 SECTION 57. The changes in law made by Sections 15 and 18 of
46-8 this Act apply to all tax suits, regardless of when commenced, in
46-9 which judgment is signed on or after September 1, 1999.
46-10 SECTION 58. The changes in law made by Sections 22, 23 and
46-11 25 of this Act apply to all tax sales conducted on or after
46-12 September 1, 1999 and based on judgments signed before, on or after
46-13 September 1, 1999. The date on which a tax sale was conducted is
46-14 deemed to be the first Tuesday of the month in which the public
46-15 auction occurred.
46-16 SECTION 59. The change in law made by Sections 26 and 27 of
46-17 this Act applies to the disposition of excess proceeds of a
46-18 property tax foreclosure or summary sale paid into court regardless
46-19 of the date on which the sale occurred or the date on which the
46-20 proceeds were paid into the court. If on the effective date of
46-21 this Act, the clerk of a court is retaining excess proceeds that
46-22 have been retained for longer than the period provided by Section
46-23 34.03(a), Tax Code, as amended by this Act, the clerk shall
46-24 distribute those proceeds as provided by Section 34.03(b), Tax
46-25 Code, as amended by this Act, as soon as practicable after the
47-1 effective date of this Act.
47-2 SECTION 60. The change in law made by Sections 29 and 32 of
47-3 this Act applies to all resales conducted on or after September 1,
47-4 1999 and based on judgments signed before, on or after September 1,
47-5 1999. The date on which a resale was conducted is deemed to be the
47-6 date on which the grantor's acknowledgment was taken or, if
47-7 multiple grantors, the latest date of acknowledgment as between the
47-8 various grantors.
47-9 SECTION 61. The change in law made by Section 35 of this Act
47-10 applies to all tax resales based upon original tax sales conducted
47-11 before, on or after September 1, 1999.
47-12 SECTION 62. The changes in law made by Sections 36, 38, 39
47-13 and 41 of this Act apply to redemption of real property sold at a
47-14 tax sale conducted on or after September 1, 1999 and based on
47-15 judgments entered before, on or after September 1, 1999.
47-16 Redemption of real property sold at a tax sale conducted before
47-17 September 1, 1999 is governed by the law in effect when the sale
47-18 occurred, and the former law is continued in effect for that
47-19 purpose. The date on which a tax sale was conducted is deemed as
47-20 the first Tuesday of the month in which the public auction
47-21 occurred.
47-22 SECTION 63. The changes in law made by Sections 45, 46 and
47-23 47 of this Act apply to the estates of all decedents, regardless of
47-24 the date of death, and apply to the estates of all wards,
47-25 regardless of the date the application for appointment of a
48-1 guardian was filed, and to all causes of action pending on its
48-2 effective date as well as future actions.
48-3 SECTION 64. The changes in law made by Sections 48, 49 and
48-4 50 apply to all actions pending on September 1, 1999 and to all
48-5 actions instituted thereafter.
48-6 SECTION 65. The importance of this legislation and the
48-7 crowded condition of the calendars in both houses create an
48-8 emergency and an imperative public necessity that the
48-9 constitutional rule requiring bills to be read on three several
48-10 days in each house be suspended, and that this Act take effect and
48-11 be in force from and after its passage, and it is so enacted.