1-1 By: Heflin (Senate Sponsor - Wentworth) H.B. No. 3549
1-2 (In the Senate - Received from the House May 10, 1999;
1-3 May 10, 1999, read first time and referred to Committee on Finance;
1-4 May 13, 1999, reported favorably, as amended, by the following
1-5 vote: Yeas 9, Nays 0; May 13, 1999, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Lindsay
1-7 In SECTION 22, Sec. 34.05(d), page 11, lines 34-35, between
1-8 "subsection" and "and", strike "without imposing a recording or
1-9 other fee for that filing".
1-10 COMMITTEE AMENDMENT NO. 2 By: Lindsay
1-11 (1) Amend HB 3549, Section 34.01(o), on page 8, line 46, by
1-12 deleting the following:
1-13 "...without a recording or other fee for that filing..."
1-14 A BILL TO BE ENTITLED
1-15 AN ACT
1-16 relating to the administration and collection of ad valorem taxes
1-17 and certain local standby fees.
1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-19 SECTION 1. Section 25.06, Tax Code, is amended to read as
1-20 follows:
1-21 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
1-22 INTEREST. (a) Except as provided by Section 25.07 [of this code],
1-23 property encumbered by a leasehold or other possessory interest or
1-24 by a mortgage, deed of trust, or other interest securing payment or
1-25 performance of an obligation shall be listed in the name of the
1-26 owner of the property so encumbered.
1-27 (b) Except as otherwise directed in writing under Section
1-28 1.111(f), real property that is subject to an installment contract
1-29 of sale shall be listed in the name of the seller if the
1-30 installment contract is not filed of record in the real property
1-31 records of the county.
1-32 SECTION 2. Chapter 31, Tax Code, is amended by adding
1-33 Section 31.081 to read as follows:
1-34 Sec. 31.081. PROPERTY TAX WITHHOLDING ON PURCHASE OF
1-35 BUSINESS OR INVENTORY. (a) This section applies only to a person
1-36 who purchases a business, an interest in a business, or the
1-37 inventory of a business from a person who is liable under this
1-38 title for the payment of taxes imposed on personal property used in
1-39 the operation of that business.
1-40 (b) The purchaser shall withhold from the purchase price an
1-41 amount sufficient to pay all of the taxes imposed on the personal
1-42 property of the business, plus any penalties and interest incurred,
1-43 until the seller provides the purchaser with:
1-44 (1) a receipt issued by each appropriate collector
1-45 showing that the taxes due the applicable taxing unit, plus any
1-46 penalties and interest, have been paid; or
1-47 (2) a tax certificate issued under Section 31.08
1-48 stating that no taxes, penalties, or interest is due the applicable
1-49 taxing unit.
1-50 (c) A purchaser who fails to withhold the amount required by
1-51 this section is liable for that amount to the applicable taxing
1-52 units to the extent of the value of the purchase price, including
1-53 the value of a promissory note given in consideration of the sale
1-54 to the extent of the note's market value on the effective date of
1-55 the purchase, regardless of whether the purchaser has been required
1-56 to make any payments on that note.
1-57 (d) The purchaser may request each appropriate collector to
1-58 issue a tax certificate under Section 31.08 or a statement of the
1-59 amount of the taxes, penalties, and interest that are due to each
1-60 taxing unit for which the collector collects taxes. The collector
1-61 shall issue the certificate or statement before the 10th day after
2-1 the date the request is made. If a collector does not timely
2-2 provide or mail the certificate or statement to the purchaser, the
2-3 purchaser is released from the duties and liabilities imposed by
2-4 Subsections (b) and (c) in connection with taxes, penalties, and
2-5 interest due the applicable taxing unit.
2-6 (e) An action to enforce a duty or liability imposed on a
2-7 purchaser by Subsection (b) or (c) must be brought before the
2-8 fourth anniversary of the effective date of the purchase. An
2-9 action to enforce the purchaser's duty or liability is subject to a
2-10 limitation plea by the purchaser as to any taxes that have been
2-11 delinquent at least four years as of the date the collector issues
2-12 the statement under Subsection (d).
2-13 (f) This section does not release a person who sells a
2-14 business or the inventory of a business from any personal liability
2-15 imposed on the person for the payment of taxes imposed on the
2-16 personal property of the business or for penalties or interest on
2-17 those taxes.
2-18 (g) For purposes of this section:
2-19 (1) a person is considered to have purchased a
2-20 business if the person purchases the name of the business or the
2-21 goodwill associated with the business; and
2-22 (2) a person is considered to have purchased the
2-23 inventory of a business if the person purchases inventory of a
2-24 business, the value of which is at least 50 percent of the value of
2-25 the total inventory of the business on the date of the purchase.
2-26 SECTION 3. Section 32.01, Tax Code, is amended by
2-27 redesignating existing Subsection (c) as Subsection (d) and by
2-28 adding a new Subsection (c) to read as follows:
2-29 (c) If an owner's real property is described with certainty
2-30 by metes and bounds in one or more instruments of conveyance and
2-31 part of that property is the owner's residence homestead taxed
2-32 separately and apart from the remainder of the property, each of
2-33 the liens under this section that secures the taxes imposed on that
2-34 homestead and on the remainder of that property extends in solido
2-35 to all the real property described in the instrument or instruments
2-36 of conveyance.
2-37 (d) [(c)] The lien under this section is perfected on
2-38 attachment and, except as provided by Section 32.03(b), perfection
2-39 requires no further action by the taxing unit.
2-40 SECTION 4. Section 32.015(b), Tax Code, is amended to read
2-41 as follows:
2-42 (b) The collector may simultaneously file notice of tax
2-43 liens of all the taxing units served by the collector. However,
2-44 notice of any lien for taxes for the preceding [prior] calendar
2-45 year must be filed with the department before [prior to] September
2-46 1 of the following year. Any lien for which the notice is not
2-47 filed by that [such] date is unenforceable against:
2-48 (1) a bona fide purchaser for value who is without
2-49 notice or actual knowledge of the lien or the delinquent taxes for
2-50 which the tax lien exists; or
2-51 (2) the holder of a lien recorded on the manufactured
2-52 home document of title [extinguished and is not enforceable].
2-53 SECTION 5. Section 32.05(c), Tax Code, is amended to read as
2-54 follows:
2-55 (c) A tax lien provided by this chapter is inferior to a
2-56 claim:
2-57 (1) [claims] for any survivor's allowance, funeral
2-58 expenses, or expenses of the last illness of a decedent made
2-59 against the estate of a decedent as provided by law;
2-60 (2) under a[, or] recorded restrictive covenant
2-61 [covenants] running with the land, other than a restrictive
2-62 covenant in favor of a property owners' association or homeowners'
2-63 association recorded before January 1 of the year the tax lien
2-64 arose; or
2-65 (3) under a valid easement [easements] of record
2-66 [which were] recorded before [prior to] January 1 of the year the
2-67 tax lien arose.
2-68 SECTION 6. Section 32.07(e), Tax Code, is amended to read as
2-69 follows:
3-1 (e) With respect to an ad valorem tax or other money subject
3-2 to the provisions of Subsection (d), an individual who controls or
3-3 supervises the collection of tax or money from another person, or
3-4 an individual who controls or supervises the accounting for and
3-5 paying over of the tax or money, and who wilfully fails to pay or
3-6 cause to be paid the tax or money is liable as a responsible
3-7 individual for an amount equal to the tax or money, plus all
3-8 interest, penalties, and costs, not paid or caused to be paid. The
3-9 liability imposed by this subsection is in addition to any other
3-10 penalty provided by law. The dissolution of a corporation,
3-11 association, limited liability company, or partnership does not
3-12 affect a responsible individual's liability under this subsection.
3-13 SECTION 7. Section 32.07, Tax Code, is amended by adding
3-14 Subsection (h) to read as follows:
3-15 (h) For purposes of Subsection (a), a person is considered
3-16 to be an owner of property subject to an installment contract of
3-17 sale if the person is:
3-18 (1) the seller of the property; or
3-19 (2) a purchaser of the property who has the duty under
3-20 the installment contract to pay taxes on the property.
3-21 SECTION 8. Section 33.011(a), Tax Code, is amended to read
3-22 as follows:
3-23 (a) The governing body of a taxing unit shall waive
3-24 penalties and may provide for the waiver of interest on a
3-25 delinquent tax if an act or omission of an officer, employee, or
3-26 agent of the taxing unit or the appraisal district in which the
3-27 taxing unit participates caused or resulted in the taxpayer's
3-28 failure to pay the tax before delinquency and if the tax is paid
3-29 within 21 days after the taxpayer knows or should know of the
3-30 delinquency. The governing body of a taxing unit may:
3-31 (1) delegate to the collector for the taxing unit the
3-32 authority to waive penalties and interest under this subsection;
3-33 and
3-34 (2) impose limitations or restrictions on the exercise
3-35 of that authority.
3-36 SECTION 9. Section 33.04, Tax Code, is amended to read as
3-37 follows:
3-38 Sec. 33.04. NOTICE OF DELINQUENCY. (a) At least once each
3-39 year the collector for a taxing unit shall deliver a notice of
3-40 delinquency to each person whose name appears on the current
3-41 delinquent tax roll. However, the notice need not be delivered if:
3-42 (1) a bill for the tax was not mailed under [pursuant
3-43 to the authorization provided by] Section 31.01(f) [of this code];
3-44 or
3-45 (2) the collector does not know and by exercising
3-46 reasonable diligence cannot determine the delinquent taxpayer's
3-47 name and address.
3-48 (b) In addition to the notice required by Subsection (a)
3-49 [of this section], the [tax] collector for each taxing unit in each
3-50 year divisible by five shall deliver by mail a written notice of
3-51 delinquency to:
3-52 (1) each person whose name and mailing address are
3-53 listed on the most recent certified appraisal roll, if the taxes on
3-54 the property of that person are shown on the collector's records as
3-55 having [who owes a tax that has] been delinquent more than one
3-56 year; and
3-57 (2) each person who owes a tax on personal property or
3-58 an interest in a mineral estate that has been delinquent more than
3-59 one year, if that property or mineral estate is not listed on the
3-60 current appraisal under that person's name but that person's
3-61 [whose] name and mailing address are known to the collector [or can
3-62 be determined by the exercise of reasonable diligence].
3-63 (c) The collector [He] shall state in the notice required by
3-64 Subsection (b) the amount of the delinquent tax, penalties, and
3-65 interest due, the description of the property on which the tax was
3-66 imposed, and the year for which the tax is delinquent. Each notice
3-67 required by Subsection (b) to be delivered to [If] the same person
3-68 [owes delinquent taxes] for more than one year or on more than one
3-69 property[, the collector] may be included [include all the
4-1 delinquent taxes the person owes] in a single notice.
4-2 (d) In a suit brought against a person entitled to receive
4-3 notice under Subsection (b) for the collection of penalties
4-4 [(c) Penalties] and interest on a tax delinquent more than five
4-5 years or a multiple of five years, it is an affirmative defense
4-6 available to the person that [are cancelled and may not be
4-7 collected if] the collector did [has] not deliver [delivered] the
4-8 notice required by Subsection (b) [of this section in each year
4-9 that is divisible by five following the date on which the tax first
4-10 became delinquent for one year].
4-11 (e) Notwithstanding Subsection (d), interest and penalties
4-12 on a tax are reinstated and shall be collected by the collector if,
4-13 subsequent to the collector's failure to deliver the notice
4-14 required by Subsection (b), the collector delivers the notice in
4-15 any subsequent year divisible by five. The interest and penalties
4-16 on the tax are reinstated prospectively and begin to accrue at the
4-17 rates provided by Section 33.01 on the first day of the first month
4-18 that begins at least 21 days after the date the collector delivers
4-19 the subsequent notice.
4-20 (f) A notice under this section is presumed to be delivered
4-21 when it is deposited in regular first-class mail, postage prepaid,
4-22 and addressed to the appropriate person under Subsection (b).
4-23 Notwithstanding Section 1.07, the presumption of delivery under
4-24 this section may not be rebutted with evidence of failure to
4-25 receive the notice.
4-26 SECTION 10. Section 33.07, Tax Code, is amended to read as
4-27 follows:
4-28 Sec. 33.07. Additional Penalty for Collection Costs FOR
4-29 TAXES DUE BEFORE JUNE 1. (a) A taxing unit or appraisal district
4-30 may provide, in the manner required by law for official action by
4-31 the body, that taxes that become delinquent on or after February 1
4-32 of a year but not later than May 1 of that year and that remain
4-33 delinquent on July 1 of the year in which they become delinquent
4-34 incur an additional penalty to defray costs of collection, if the
4-35 unit or district or another unit that collects taxes for the unit
4-36 has contracted with an attorney pursuant to Section 6.30 of this
4-37 code. The amount of the penalty may not exceed 15 percent of the
4-38 amount of taxes, penalty, and interest due.
4-39 (b) A tax lien attaches to the property on which the tax is
4-40 imposed to secure payment of the penalty.
4-41 (c) If a penalty is imposed pursuant to this section, a
4-42 taxing unit may not recover attorney's fees in a suit to collect
4-43 delinquent taxes subject to the penalty.
4-44 (d) If a taxing unit or appraisal district provides for a
4-45 penalty under this section, the collector shall deliver a notice of
4-46 delinquency and of the penalty to the property owner at least 30
4-47 and not more than 60 days before July 1.
4-48 SECTION 11. Subchapter A, Chapter 33, Tax Code, is amended
4-49 by adding Section 33.08 to read as follows:
4-50 Sec. 33.08. ADDITIONAL PENALTY FOR COLLECTION COSTS FOR
4-51 TAXES DUE ON OR AFTER JUNE 1. (a) This section applies to a
4-52 taxing unit or appraisal district only if:
4-53 (1) the governing body of the taxing unit or appraisal
4-54 district has imposed the additional penalty for collection costs
4-55 under Section 33.07; and
4-56 (2) the taxing unit or appraisal district, or another
4-57 taxing unit that collects taxes for the unit, has entered into a
4-58 contract with an attorney under Section 6.30 for the collection of
4-59 the unit's delinquent taxes.
4-60 (b) The governing body of the taxing unit or appraisal
4-61 district, in the manner required by law for official action, may
4-62 provide that taxes that become delinquent on or after June 1 under
4-63 Section 31.03, 31.031, 31.032, or 31.04 incur an additional penalty
4-64 to defray costs of collection. The amount of the penalty may not
4-65 exceed 15 percent of the amount of taxes, penalty, and interest
4-66 due.
4-67 (c) After the taxes become delinquent, the collector for a
4-68 taxing unit or appraisal district that has provided for the
4-69 additional penalty under this section shall send a notice of the
5-1 delinquency and the penalty to the property owner. The penalty is
5-2 incurred on the first day of the first month that begins at least
5-3 21 days after the date the notice is sent.
5-4 (d) A tax lien attaches to the property on which the tax is
5-5 imposed to secure payment of the additional penalty.
5-6 (e) A taxing unit or appraisal district that imposes the
5-7 additional penalty under this section may not recover attorney's
5-8 fees in a suit to collect delinquent taxes subject to the penalty.
5-9 SECTION 12. Section 33.43(a), Tax Code, is amended to read
5-10 as follows:
5-11 (a) A petition initiating a suit to collect a delinquent
5-12 property tax is sufficient if it alleges that:
5-13 (1) the taxing unit is legally constituted and
5-14 authorized to impose and collect ad valorem taxes on property;
5-15 (2) tax in a stated amount was legally imposed on each
5-16 separately described property for each year specified and on each
5-17 person named if known who owned the property on January 1 of the
5-18 year for which the tax was imposed;
5-19 (3) the tax was imposed in the county in which the
5-20 suit is filed;
5-21 (4) the tax is delinquent;
5-22 (5) penalties, interest, and costs authorized by law
5-23 in a stated amount for each separately assessed property are due;
5-24 (6) the taxing unit is entitled to recover [taxes
5-25 imposed on the property for the current tax year and each
5-26 subsequent tax year until the property is sold under Section 34.01
5-27 or 34.015, as applicable, prorated to the date of the sale, and]
5-28 each penalty that is incurred and all interest that accrues on
5-29 delinquent taxes imposed on the property from the date of the
5-30 judgment to the date of the sale under Section 34.01 or 34.015, as
5-31 applicable, if the suit seeks to foreclose a tax lien;
5-32 (7) the person sued owned the property on January 1 of
5-33 the year for which the tax was imposed if the suit seeks to enforce
5-34 personal liability;
5-35 (8) the person sued owns the property when the suit is
5-36 filed if the suit seeks to foreclose a tax lien;
5-37 (9) the taxing unit asserts a lien on each separately
5-38 described property to secure the payment of all taxes, penalties,
5-39 interest, and costs due if the suit seeks to foreclose a tax lien;
5-40 (10) all things required by law to be done have been
5-41 done properly by the appropriate officials; and
5-42 (11) the attorney signing the petition is legally
5-43 authorized to prosecute the suit on behalf of the taxing unit.
5-44 SECTION 13. Section 33.47(a), Tax Code, is amended to read
5-45 as follows:
5-46 (a) In a suit to collect a delinquent tax, the taxing unit's
5-47 current tax roll and delinquent tax roll or certified copies of the
5-48 entries showing the property and the amount of the tax and
5-49 penalties imposed and interest accrued constitute prima facie
5-50 evidence that each person charged with a duty relating to the
5-51 imposition of the tax has complied with all requirements of law and
5-52 that the amount of tax alleged to be delinquent against the
5-53 property and the amount of penalties and interest due on that tax
5-54 as listed are the correct amounts [is the correct amount].
5-55 SECTION 14. Section 33.50, Tax Code, is amended by adding
5-56 Subsection (c) to read as follows:
5-57 (c) The order of sale shall also specify that the property
5-58 may not be sold to a person owning an interest in the property or
5-59 to a person who is a party to the suit other than a taxing unit
5-60 unless:
5-61 (1) that person is the highest bidder at the tax sale;
5-62 and
5-63 (2) the amount bid by that person is equal to or
5-64 greater than the aggregate amount of the judgments against the
5-65 property, including all costs of suit and sale.
5-66 SECTION 15. Section 33.52, Tax Code, as amended by Chapters
5-67 906, 981, and 1111, Acts of the 75th Legislature, Regular Session,
5-68 1997, is reenacted and amended to read as follows:
5-69 Sec. 33.52. TAXES INCLUDED IN JUDGMENT [FOR CURRENT TAXES].
6-1 (a) Only taxes that are delinquent on the date of a judgment may
6-2 be included in the amount recoverable under the judgment by the
6-3 taxing units that are parties to the suit [If the court orders the
6-4 foreclosure of a tax lien and the sale of real property, the
6-5 judgment may include foreclosure on any unpaid tax on the property
6-6 for the current year].
6-7 (b) In lieu of stating as a liquidated amount the aggregate
6-8 total of taxes, penalties, and interest due, a judgment may:
6-9 (1) set out the tax due each taxing unit for each
6-10 year; and
6-11 (2) provide that penalties and interest accrue on the
6-12 unpaid taxes as provided by Subchapter A [If the amount of tax for
6-13 the current tax year has not been determined on the date of
6-14 judgment, the court may order recovery of and foreclosure on the
6-15 amount of tax imposed on the property for the preceding tax year].
6-16 (c) For purposes of calculating penalties and interest due
6-17 under the judgment, it is presumed that the delinquency date for a
6-18 tax is February 1 of the year following the year in which the tax
6-19 was imposed, unless the judgment provides otherwise [If the
6-20 judgment does not provide for recovery of taxes imposed for the
6-21 current tax year, or for recovery of estimated taxes that cannot
6-22 then be calculated for the current year, the real property is
6-23 subject to the taxes for the current tax year and to the lien that
6-24 secures those taxes, and any subsequent purchaser takes the
6-25 property subject to those taxes and the tax lien].
6-26 (d) A taxing unit's claim for taxes that become delinquent
6-27 after the date of the judgment is not affected by the entry of the
6-28 judgment or a tax sale conducted under that judgment. Those taxes
6-29 may be collected by any remedy provided by this title.
6-30 SECTION 16. Section 33.53, Tax Code, is amended to read as
6-31 follows:
6-32 Sec. 33.53. ORDER OF SALE; PAYMENT BEFORE SALE. (a) If
6-33 judgment in a suit to collect a delinquent tax is for foreclosure
6-34 of a tax lien, the court shall order the property sold in
6-35 satisfaction of the amount of the judgment.
6-36 (b) On application by a taxing unit that is a party to the
6-37 judgment, the district clerk shall prepare an order to an officer
6-38 authorized to conduct execution sales ordering the sale of the
6-39 property. If more than one parcel of property is included in the
6-40 judgment, the taxing unit may specify particular parcels to be
6-41 sold. A taxing unit may request more than one order of sale as
6-42 necessary to collect all amounts due under the judgment.
6-43 (c) An order of sale:
6-44 (1) shall be returned to the district clerk as
6-45 unexecuted if not executed before the 181st day after the date the
6-46 order is issued; and
6-47 (2) may:
6-48 (A) be accompanied by a copy of the judgment and
6-49 a bill of costs attached to the order; or
6-50 (B) incorporate the terms of the judgment or
6-51 bill of costs by reference.
6-52 (d) A judgment or a bill of costs attached to the order of
6-53 sale is not required to be certified.
6-54 (e) If the owner pays the amount of the judgment before the
6-55 property is sold, the taxing unit shall:
6-56 (1) release the tax lien held by the taxing unit on
6-57 the property; and
6-58 (2) file for record with the clerk of the court in
6-59 which the judgment was rendered a release of the lien.
6-60 SECTION 17. Section 34.01, Tax Code, is amended to read as
6-61 follows:
6-62 Sec. 34.01. SALE OF PROPERTY. (a) Property seized or
6-63 ordered sold pursuant to foreclosure of a tax lien shall be sold by
6-64 the officer charged with selling the property, unless otherwise
6-65 directed by the taxing unit that requested the order of sale or by
6-66 an authorized agent or attorney for that unit. The sale shall be
6-67 conducted in the manner similar property is sold under execution
6-68 except as otherwise provided by this subtitle [subchapter].
6-69 (b) On receipt of an order of sale of real property, the
7-1 officer charged with selling the property shall endorse on the
7-2 order the date and exact time when the officer received the order.
7-3 The endorsement is a levy on the property without necessity for
7-4 going upon the ground. The officer shall calculate the total
7-5 amount due under the judgment, including all taxes, penalties, and
7-6 interest, plus any other amount awarded by the judgment, court
7-7 costs, and the costs of the sale, including the costs of
7-8 advertising under Subsection (d). To assist the officer in making
7-9 the calculation, the collector of any taxing unit that is party to
7-10 the judgment may provide the officer with a certified tax statement
7-11 showing the amount due that taxing unit as of the date of the
7-12 proposed sale. If a certified tax statement is provided to the
7-13 officer, the officer shall rely on the amount included in the
7-14 statement and is not responsible or liable for the accuracy of the
7-15 applicable portion of the calculation.
7-16 (c) The officer charged with the sale shall give written
7-17 notice of the sale in the manner prescribed by Rule 21a, Texas
7-18 Rules of Civil Procedure, as amended, or that rule's successor to
7-19 each person who was a defendant to the judgment or that person's
7-20 attorney.
7-21 (d) The officer shall advertise the time and place of the
7-22 sale by having the notice of the sale published in English at least
7-23 once in a newspaper published in the county in which the sale is to
7-24 occur, not later than the 20th day before the date of the sale.
7-25 (e) An officer's failure to send the written notice of sale
7-26 or a defendant's failure to receive that notice is insufficient by
7-27 itself to invalidate:
7-28 (1) the sale of the property; or
7-29 (2) the title conveyed by that sale.
7-30 (f) A notice of sale under Subsection (c) or (d) may
7-31 include:
7-32 (1) one or more properties foreclosed by a single
7-33 judgment; or
7-34 (2) one or more properties foreclosed by multiple
7-35 judgments in more than one cause of action.
7-36 (g) A notice of sale under Subsection (c) or (d) must
7-37 substantially comply with this subsection. The notice must
7-38 include:
7-39 (1) a statement of the authority under which the sale
7-40 is to be made;
7-41 (2) the date, time, and location of the sale; and
7-42 (3) a brief description of the property to be sold.
7-43 (h) A notice of sale is not required to include field notes
7-44 describing the property. A description of the property is
7-45 sufficient if the notice:
7-46 (1) states the number of acres and identifies the
7-47 original survey;
7-48 (2) as to property located in a platted subdivision or
7-49 addition, regardless of whether the subdivision or addition is
7-50 recorded, states the name by which the land is generally known
7-51 with reference to that subdivision or addition; or
7-52 (3) by reference adopts the description of the
7-53 property contained in the judgment.
7-54 (i) For publishing a notice of sale, a newspaper may charge
7-55 a rate that does not exceed the greater of:
7-56 (1) two cents per word; or
7-57 (2) an amount equal to the published word or line rate
7-58 of that newspaper for the same class of advertising.
7-59 (j) If there is not a newspaper published in the county of
7-60 the sale, or a newspaper that will publish the notice of sale for
7-61 the rate authorized by Subsection (i), the officer shall post the
7-62 notice in writing in three public places in the county not later
7-63 than the 20th day before the date of the sale. One of the notices
7-64 must be posted at the door of the county courthouse.
7-65 (k) The owner of real property subject to sale may file with
7-66 the officer charged with the sale a written request that the
7-67 property be divided and that only as many portions be sold as [is]
7-68 necessary to pay the amount [tax, penalties, interest, and costs
7-69 adjudged] due against the property, as calculated under Subsection
8-1 (b). In the request the owner shall describe the desired portions
8-2 and shall specify the order in which the portions should be sold.
8-3 The owner may not specify more than four portions or a portion that
8-4 divides a building or other contiguous improvement. The request
8-5 must be delivered to the officer not later than the seventh day
8-6 before the date of the sale.
8-7 (l) [(c)] If a [sufficient] bid sufficient to pay the lesser
8-8 of the amount calculated under Subsection (b) or the adjudged value
8-9 is not received, the taxing unit that requested the order of sale
8-10 may terminate the sale. If the taxing unit does not terminate the
8-11 sale, the officer making the sale shall bid the property off to the
8-12 [a] taxing unit that requested the order of sale, unless otherwise
8-13 agreed by each other taxing unit that is a party to the judgment,
8-14 for the aggregate amount of the judgment against the property or
8-15 for the market value of the property as specified in the judgment,
8-16 whichever is less. The duty of the officer conducting the sale to
8-17 bid off the property to a taxing unit under this subsection is
8-18 self-executing. The actual attendance of a representative of the
8-19 taxing unit at the sale is not a prerequisite to that duty.
8-20 (m) The taxing unit to which the property is bid off takes
8-21 title to the property for the use and benefit of itself and all
8-22 other taxing units that established tax liens in the suit. The
8-23 taxing unit's title includes all the interest owned by the
8-24 defendant, including the defendant's right to the use and
8-25 possession of the property, subject only to the defendant's right
8-26 of redemption. Payments in satisfaction of the judgment and any
8-27 costs or expenses of the sale may not be required of the purchasing
8-28 taxing unit until the property is redeemed or resold by the
8-29 purchasing taxing unit.
8-30 (n) Notwithstanding that property is bid off to a taxing
8-31 unit under this section, a taxing unit that established a tax lien
8-32 in the suit may continue to enforce collection of any amount for
8-33 which a former owner of the property is liable to the taxing unit,
8-34 including any post-judgment taxes, penalties, and interest, in any
8-35 other manner provided by law.
8-36 (o) [(d)] The officer making the sale shall prepare a deed
8-37 to the purchaser of real property at the sale, [or] to any other
8-38 person whom the purchaser may specify, or to the taxing unit to
8-39 which the property was bid off. The taxing unit that requested the
8-40 order of sale may elect to prepare a deed for execution by the
8-41 officer. The officer shall execute the deed and either file the
8-42 deed for recording with the county clerk or deliver the executed
8-43 deed to the taxing unit that requested the order of sale, which
8-44 shall file the deed for recording with the county clerk. The
8-45 county clerk shall file and record each deed filed under this
8-46 subsection without a recording or other fee for that filing and
8-47 after recording shall return the deed to the grantee.
8-48 (p) The deed vests good and perfect title in the purchaser
8-49 or the purchaser's assigns to the interest owned by the defendant
8-50 in the property subject to the foreclosure, including the
8-51 defendant's right to the use and possession of the property,
8-52 subject only to the defendant's right of redemption, the terms of a
8-53 recorded restrictive covenant [covenants] running with the land
8-54 that was recorded before January 1 of the year in which the tax
8-55 lien on the property arose, a recorded lien that arose under that
8-56 restrictive covenant that was not extinguished in the judgment
8-57 foreclosing the tax lien, and each valid easement [easements] of
8-58 record as of the date of the sale that was[, if such covenants or
8-59 easements were] recorded before [prior to] January 1 of the year
8-60 the tax lien arose. The deed may be impeached only for fraud.
8-61 (q) [(e)] Notwithstanding Subsection (l) [(c)], if a
8-62 sufficient bid is not received, the officer making the sale may bid
8-63 off property seized under Subchapter E, Chapter 33, [off] to a
8-64 person described by Section 11.181 for less than the tax warrant
8-65 amount or the market value of the property. Consent to the sale by
8-66 the taxing units entitled to receive proceeds of the sale is not
8-67 required.
8-68 (r) [(f)] Except as provided by [in] Subsection (q) [(e)],
8-69 property seized under Subchapter E, Chapter 33, may not be sold for
9-1 an amount that is less than the lesser of the market value of the
9-2 property or the total amount of taxes due on the property. A
9-3 taxing unit that takes title to property seized under that
9-4 subchapter takes title to the property for the use and benefit of
9-5 that taxing unit and all other taxing units that established tax
9-6 liens in the suit or that, on the date of the seizure, were owed
9-7 delinquent taxes on the property.
9-8 (s) A sale of property under this section to a purchaser
9-9 other than a taxing unit:
9-10 (1) extinguishes each lien securing payment of the
9-11 taxes, penalties, and interest against that property and included
9-12 in the judgment; and
9-13 (2) does not affect the personal liability of any
9-14 person for those taxes, penalties, and interest included in the
9-15 judgment that are not satisfied from the proceeds of the sale.
9-16 (t) A sale of real property under this section must take
9-17 place at the county courthouse in the county in which the land is
9-18 located. The sale shall occur in the same location in the
9-19 courthouse that is designated by the commissioners court of the
9-20 county for the sale of real property under Section 51.002, Property
9-21 Code.
9-22 (u) To the extent of a conflict between this section and a
9-23 provision of the Texas Rules of Civil Procedure that relates to an
9-24 execution, this section controls.
9-25 SECTION 18. Section 34.015(a), Tax Code, is amended to read
9-26 as follows:
9-27 (a) Notwithstanding any other provision of this subchapter,
9-28 the governing body of a municipality may provide for the manner in
9-29 which land acquired by the municipality following the seizure of
9-30 the land or the foreclosure of a tax lien in favor of the
9-31 municipality may be sold if the land is sold to:
9-32 (1) a nonprofit organization that develops housing for
9-33 low income individuals and families as a primary activity to
9-34 promote community-based revitalization of the municipality; or
9-35 (2) a nonprofit corporation described by 26 U.S.C.
9-36 Section 501(c)(3) that:
9-37 (A) has been incorporated in this state for at
9-38 least one year;
9-39 (B) has a corporate purpose to develop
9-40 affordable housing that is stated in its articles of incorporation,
9-41 bylaws, or charter;
9-42 (C) has at least one-fourth of its board of
9-43 directors residing in the municipality; and
9-44 (D) engages primarily in the building, repair,
9-45 rental, or sale of housing for low income individuals and families.
9-46 SECTION 19. Section 34.02, Tax Code, is amended to read as
9-47 follows:
9-48 Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of
9-49 a tax sale under Section 33.94 or 34.01 shall be applied in the
9-50 order prescribed by Subsection (b) [first to the payment of costs].
9-51 The amount included under each subdivision of Subsection (b) must
9-52 be fully paid before any of the proceeds may be applied to the
9-53 amount included under a subsequent subdivision [The remainder shall
9-54 be distributed to all taxing units participating in the sale in
9-55 satisfaction of the taxes, penalties, and interest due each].
9-56 (b) The proceeds shall be applied to:
9-57 (1) all costs of advertising the tax sale and all
9-58 original court costs payable to the clerk of the court;
9-59 (2) all fees and commissions payable to the officer
9-60 conducting the sale;
9-61 (3) taxes, penalties, and interest that are due under
9-62 the judgment; and
9-63 (4) any other amount awarded to a taxing unit under
9-64 the judgment.
9-65 (c) If the proceeds are not sufficient to pay the total
9-66 amount included under any subdivision of Subsection (b) [costs and
9-67 taxes, penalties, and interest due all participants in the sale],
9-68 each participant in the amount included under that subdivision is
9-69 entitled to a share of the proceeds [after payment of costs] in an
10-1 amount equal to the proportion its entitlement bears [taxes,
10-2 penalties, and interest bear] to the total amount included under
10-3 that subdivision [of taxes, penalties, and interest due all
10-4 participants in the sale].
10-5 (d) [(c)] If the sale is pursuant to foreclosure of a tax
10-6 lien, the officer conducting the sale shall pay any excess proceeds
10-7 after payment of all amounts [costs and of all taxes, penalties,
10-8 and interest] due all participants in the sale as specified by
10-9 Subsection (b) to the clerk of the court issuing the order of sale.
10-10 (e) [(d)] If the sale is pursuant to seizure of personal
10-11 property, the officer conducting the sale shall distribute any
10-12 excess of proceeds as provided by law for excess proceeds in the
10-13 case of execution.
10-14 (f) [(e)] In this section, "taxes" includes a charge, fee,
10-15 or expense that is expressly authorized by Section 32.06 or 32.065.
10-16 SECTION 20. Section 34.04, Tax Code, is amended to read as
10-17 follows:
10-18 Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (a) A person,
10-19 including a taxing unit, may file a petition in the court that
10-20 ordered the seizure or sale setting forth a claim to the excess
10-21 proceeds. The petition must be filed before the second anniversary
10-22 of [within seven years from] the date of the sale of the property.
10-23 The petition is not required to be filed as an original suit
10-24 separate from the underlying suit for seizure of the property or
10-25 foreclosure of a tax lien on the property but may be filed under
10-26 the cause number of the underlying suit.
10-27 (b) A copy of the petition shall be served, in the manner
10-28 prescribed by Rule 21a, Texas Rules of Civil Procedure, as
10-29 amended, or that rule's successor, on [the county attorney or, if
10-30 there is no county attorney, the district attorney and on] all
10-31 parties to the underlying action [suit that ordered the sale, if
10-32 any,] not later than the 20th day before the date set for a hearing
10-33 on the petition.
10-34 (c) At the hearing [if] the court [finds that the claimant
10-35 is entitled to recover the excess proceeds, it] shall order that
10-36 the proceeds be paid according to the following priorities to each
10-37 party that establishes its claim to the proceeds:
10-38 (1) to a taxing unit for any taxes, penalties, or
10-39 interest that have become due or delinquent on the subject property
10-40 subsequent to the date of the judgment;
10-41 (2) to any other lienholder, consensual or otherwise,
10-42 for the amount due under a lien, in accordance with the priorities
10-43 established by applicable law;
10-44 (3) to a taxing unit for any unpaid taxes, penalties,
10-45 interest, or other amounts adjudged due under the judgment that
10-46 were not satisfied from the proceeds from the tax sale; and
10-47 (4) to each owner of the property [him].
10-48 (d) Interest or costs may not be allowed under this section.
10-49 [(d) A claim for the excess proceeds may not be filed after
10-50 the expiration of seven years from the date the property is sold.]
10-51 SECTION 21. Section 34.05(a), Tax Code, as amended by
10-52 Chapters 906 and 1111, Acts of the 75th Legislature, Regular
10-53 Session, 1997, is reenacted to read as follows:
10-54 (a) If property is sold to a taxing unit that is a party to
10-55 the judgment, the taxing unit may sell the property at any time by
10-56 public or private sale. In selling the property, the taxing unit
10-57 may, but is not required to, use the procedures provided by Section
10-58 263.001, Local Government Code, or Section 272.001, Local
10-59 Government Code. The sale is subject to any right of redemption of
10-60 the former owner. The redemption period begins on the date the
10-61 deed to the taxing unit is filed for record.
10-62 SECTION 22. Sections 34.05(c) and (d), Tax Code, are amended
10-63 to read as follows:
10-64 (c) The taxing unit purchasing the property by resolution of
10-65 its governing body may request the sheriff or a constable to sell
10-66 the property at a public sale. If the purchasing taxing unit has
10-67 not sold the property within six months after the date on which the
10-68 owner's right of redemption terminates, any taxing unit that is
10-69 entitled to receive proceeds of the sale by resolution of its
11-1 governing body may request the sheriff or a constable in writing to
11-2 sell the property at a public sale. On receipt of a request made
11-3 under this subsection, the sheriff or constable shall sell the
11-4 property as provided by Subsection (d) [of this section], unless
11-5 the property is sold under [pursuant to] Subsection (h) or (i) [of
11-6 this section] before the date set for the public sale.
11-7 (d) Except as provided by this subsection, all public sales
11-8 requested as provided by Subsection (c) [of this section] shall be
11-9 conducted in the manner prescribed by the Texas Rules of Civil
11-10 Procedure for the sale of property under execution. The notice of
11-11 the sale must contain a description of the property to be sold,
11-12 which must be a legal description in the case of real property, the
11-13 number and style of the suit under which the property was sold at
11-14 the tax foreclosure sale, and the date of the tax foreclosure sale.
11-15 If the commissioners court of a county by order specifies the date
11-16 or time at which or location in the county where a public sale
11-17 requested under Subsection (c) shall be conducted, the sale shall
11-18 be conducted on the date and at the time and location specified in
11-19 the order. The acceptance of a bid by the officer conducting the
11-20 sale is conclusive and binding on the question of its sufficiency.
11-21 An action to set aside the sale on the grounds that the bid is
11-22 insufficient may not be sustained in court, except that a taxing
11-23 unit that participates in distribution of proceeds of the sale may
11-24 file an action before the first anniversary of [within one year
11-25 after] the date of the sale to set aside the sale on the grounds of
11-26 fraud or collusion between the officer making the sale and the
11-27 purchaser. On conclusion of the sale, the officer making the sale
11-28 shall prepare a deed to the purchaser. The taxing unit that
11-29 requested the sale may elect to prepare a deed for execution by the
11-30 officer. The officer shall execute the deed and either file the
11-31 deed for recording with the county clerk or deliver the executed
11-32 deed to the taxing unit that requested the sale, which shall file
11-33 the deed for recording with the county clerk. The county clerk
11-34 shall file and record each deed under this subsection without
11-35 imposing a recording or other fee for that filing and after
11-36 recording shall return the deed to the grantee.
11-37 SECTION 23. Section 34.05(h), Tax Code, as added by Chapter
11-38 712, Acts of the 75th Legislature, Regular Session, 1997, is
11-39 redesignated as Section 34.05(g), Tax Code, and amended to read as
11-40 follows:
11-41 (g) [(h)] A taxing unit to which property is bid off [in]
11-42 may recover its costs of upkeep, maintenance, and environmental
11-43 cleanup from the resale proceeds without further court order.
11-44 SECTION 24. Section 34.06, Tax Code, is amended by amending
11-45 Subsections (b) and (c) and adding Subsections (d), (e), and (f) to
11-46 read as follows:
11-47 (b) The [purchasing taxing unit shall pay all costs and
11-48 expenses of court, sale, and resale and, after deducting an amount
11-49 equal to the amount the taxing unit has reasonably spent for the
11-50 maintenance and preservation of the property, shall distribute the
11-51 remainder of the] proceeds of the resale shall be distributed as
11-52 required by Subsections (c)-(e).
11-53 (c) The purchasing taxing unit shall first retain an amount
11-54 from the proceeds to reimburse the unit for reasonable costs, as
11-55 defined by Section 34.21, incurred by the unit for:
11-56 (1) maintaining, preserving, and safekeeping the
11-57 property;
11-58 (2) marketing the property for resale; and
11-59 (3) costs described by Subsection (d).
11-60 (d) After retaining the amount authorized by Subsection (c),
11-61 the purchasing taxing unit shall then pay all costs of:
11-62 (1) the officer conducting the sale of the property;
11-63 and
11-64 (2) the clerk of the court in connection with the suit
11-65 and the sale of the property.
11-66 (e) After making the distribution under Subsection (d), any
11-67 remaining balance of the proceeds shall be paid to each taxing unit
11-68 participating in the sale in an amount equal to the proportion each
11-69 participant's taxes, penalties, and interest bear to the total
12-1 amount of taxes, penalties, and interest adjudged to be due all
12-2 participants in the sale[, less any amounts previously paid as
12-3 costs on the property as defined under Section 34.21(i)].
12-4 (f) The [(c) Notwithstanding Subsection (b), the]
12-5 purchasing taxing unit is entitled to recover from the proceeds of
12-6 a resale of the property any cost incurred by the taxing unit in
12-7 inspecting the property to determine whether there is a release or
12-8 threatened release of solid waste from the property in violation of
12-9 Chapter 361, Health and Safety Code, or a rule adopted or permit or
12-10 order issued by the Texas Natural Resource Conservation Commission
12-11 under that chapter, or a discharge or threatened discharge of waste
12-12 or a pollutant into or adjacent to water in this state from a point
12-13 of discharge on the property in violation of Chapter 26, Water
12-14 Code, or a rule adopted or permit or order issued by the commission
12-15 under that chapter, and in taking action to remove or remediate the
12-16 release or threatened release or discharge or threatened discharge
12-17 regardless of whether the taxing unit:
12-18 (1) was required by law to incur the cost; or
12-19 (2) obtained the consent of each taxing unit entitled
12-20 to receive proceeds of the sale under the judgment of foreclosure
12-21 to incur the cost.
12-22 SECTION 25. Section 34.07, Tax Code, is amended to read as
12-23 follows:
12-24 Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) The
12-25 purchaser at a void or defective tax sale or tax resale is
12-26 subrogated to the rights of the taxing unit in whose behalf the
12-27 property was sold or resold to the same extent a purchaser at a
12-28 void or defective sale conducted in behalf of a judgment creditor
12-29 is subrogated to the rights of the judgment creditor.
12-30 (b) Except as provided by Subsection (c) [of this section],
12-31 the purchaser at a void or defective tax sale or tax resale is
12-32 subrogated to the tax lien of the taxing unit in whose behalf the
12-33 property was sold or resold to the same extent a purchaser at a
12-34 void or defective mortgage or other lien foreclosure sale is
12-35 subrogated to the lien of the lienholder, and the purchaser is
12-36 entitled to a reforeclosure of the lien to which the purchaser [he]
12-37 is subrogated.
12-38 (c) If the purchaser at a void or defective tax sale or tax
12-39 resale paid less than the total amount of the judgment against the
12-40 property, the purchaser [he] is subrogated to the tax lien only in
12-41 the amount the purchaser [he] paid at the sale or resale.
12-42 (d) In lieu of pursuing the subrogation rights provided by
12-43 this section to which a purchaser [he] is subrogated, a purchaser
12-44 at a void tax sale may elect to file an action against the taxing
12-45 units to which the proceeds of the sale were distributed to recover
12-46 the amount paid at the sale. A purchaser who files a suit
12-47 authorized by this subsection waives all rights of subrogation [to
12-48 which he would] otherwise provided by this section [be subrogated].
12-49 (e) If the purchaser prevails in a suit filed under
12-50 Subsection (d), the court shall expressly provide in its final
12-51 judgment that:
12-52 (1) the tax sale is vacated and set aside; and
12-53 (2) any lien on the property extinguished by the tax
12-54 sale is reinstated on the property effective as of the date on
12-55 which the lien originally attached to the property.
12-56 SECTION 26. Section 34.21, Tax Code, as amended by Chapters
12-57 906, 914, and 1111, Acts of the 75th Legislature, Regular Session,
12-58 1997, is reenacted and amended to read as follows:
12-59 Sec. 34.21. RIGHT OF REDEMPTION. (a) The owner of real
12-60 property sold at a tax sale to a purchaser other than a taxing unit
12-61 [and] that was used as the residence homestead of the owner or that
12-62 was land designated for agricultural use when [judgment in] the
12-63 suit or the application for the warrant [to collect the tax] was
12-64 filed [rendered or when the tax warrant was issued] may redeem the
12-65 property on or before the second anniversary of [within two years
12-66 after] the date on which the purchaser's deed is filed for record
12-67 by paying the purchaser the amount the purchaser bid for the
12-68 property, the amount of the deed recording fee, and the amount paid
12-69 by the purchaser as taxes, penalties, interest, and costs on the
13-1 property, plus a redemption premium of 25 percent of the aggregate
13-2 total if the property is redeemed during the first year of the
13-3 redemption period or 50 percent of the aggregate total if the
13-4 property is redeemed during the second year of the redemption
13-5 period.
13-6 (b) If property that was used as the owner's residence
13-7 homestead or was land designated for agricultural use when the suit
13-8 or the application for the warrant [to collect the tax] was filed
13-9 is bid off to a taxing unit under Section 34.01(l) [34.01(c)] and
13-10 has not been resold by the taxing unit, the owner having a right of
13-11 redemption may redeem the property on or before the second
13-12 anniversary of [within two years after] the date on which the deed
13-13 of the taxing unit is filed for record by paying the taxing unit
13-14 the lesser of the amount of the judgment against the property or
13-15 the market value of the property as specified in that judgment,
13-16 [whichever is less,] plus the amount of the fee for filing the
13-17 taxing unit's deed and the amount spent [expended] by the taxing
13-18 unit as costs on the property.
13-19 (c) If real property that was used as the owner's residence
13-20 homestead or was land designated for agricultural use when the suit
13-21 or the application for the warrant [to collect the tax] was filed
13-22 has been resold by the taxing unit under Section 34.05, the owner
13-23 of the property having a right of redemption may redeem the
13-24 property on or before the second anniversary of [within two years
13-25 after] the date on which the taxing unit files for record the deed
13-26 from the sheriff or constable by paying the person who purchased
13-27 the property from the taxing unit the amount the purchaser paid for
13-28 the property, the amount of the fee for filing the purchaser's deed
13-29 for record, the amount paid by the purchaser as taxes, penalties,
13-30 interest, and costs on the property, plus a redemption premium of
13-31 25 percent of the aggregate total if the property is redeemed in
13-32 the first year of the redemption period or 50 percent of the
13-33 aggregate total if the property is redeemed in the second year of
13-34 the redemption period.
13-35 (d) If the amount paid by the owner of the property under
13-36 Subsection (c) is less than the amount of the judgment under which
13-37 the property was sold, the owner shall pay to the taxing unit to
13-38 which the property was bid off under Section 34.01 an amount equal
13-39 to the difference between the amount paid under Subsection (c) and
13-40 the amount of the judgment. The taxing unit shall issue a receipt
13-41 for a payment received under this subsection and shall distribute
13-42 the amount received to each taxing unit that participated in the
13-43 judgment and sale in an amount proportional to the unit's share of
13-44 the total amount of the aggregate judgments of the participating
13-45 taxing units. The owner of the property shall deliver the receipt
13-46 received from the taxing unit to the person from whom the property
13-47 is redeemed.
13-48 (e) The owner of real property sold at a tax sale other than
13-49 property that was used as the residence homestead of the owner or
13-50 that was land designated for agricultural use when the suit or the
13-51 application for the warrant [to collect the tax] was filed may
13-52 redeem the property in the same manner and by paying the same
13-53 amounts as prescribed by Subsection (a), (b), [or] (c), or (d), as
13-54 applicable, except that:
13-55 (1) the owner's right of redemption may be exercised
13-56 not [no] later than the 180th day [180 days] following the date on
13-57 which the purchaser's or taxing unit's deed is filed for record;
13-58 and
13-59 (2) the redemption premium payable by the owner to a
13-60 purchaser other than a taxing unit may [shall] not exceed 25
13-61 percent.
13-62 (f) [(e)] If the owner of the real property makes an
13-63 affidavit that the owner has made diligent search in the county in
13-64 which the property is located for the purchaser at the tax sale or
13-65 for the purchaser at resale, and has failed to find the purchaser,
13-66 that the purchaser is not a resident of the county in which the
13-67 property is located, that the owner and the purchaser cannot agree
13-68 on the amount of redemption money due, or that the purchaser
13-69 refuses to give the owner a quitclaim deed to the property, the
14-1 owner may redeem the land by paying the required amount as
14-2 prescribed by this section to the assessor-collector for the county
14-3 in which the property described has been redeemed. The
14-4 assessor-collector receiving the payment shall give the owner a
14-5 signed receipt witnessed by two persons. The receipt, when
14-6 recorded, is notice to all persons that the property described has
14-7 been redeemed. The assessor-collector shall on demand pay the
14-8 money received by the assessor-collector to the purchaser.
14-9 (g) [(e)] In this section:
14-10 (1) "Land designated for agricultural [Agricultural]
14-11 use" means land for which an application for appraisal under
14-12 Subchapter C or D, Chapter 23, has been finally approved [the
14-13 meaning assigned by Section 23.51].
14-14 (2) "Costs" includes the amount reasonably spent by
14-15 the purchaser for maintaining, preserving, [the maintenance,
14-16 preservation,] and safekeeping [of] the property, including the
14-17 cost of:
14-18 (A) property insurance;
14-19 (B) repairs or improvements required by a local
14-20 ordinance or building code or by a lease of the property in effect
14-21 on the date of the sale;
14-22 (C) discharging a lien imposed by a municipality
14-23 to secure expenses incurred by the municipality in remedying a
14-24 health or safety hazard on the property;
14-25 (D) dues or assessments for maintenance paid to
14-26 a property owners' association under a recorded restrictive
14-27 covenant to which the property is subject; and
14-28 (E) impact or standby fees imposed under the
14-29 Local Government Code or Water Code and paid to a political
14-30 subdivision.
14-31 (3) "Purchaser" includes a taxing unit to which
14-32 property is bid off under Section 34.01 [34.01(c)].
14-33 (4) "Residence homestead" has the meaning assigned by
14-34 Section 11.13.
14-35 (h) [(f)] The right of redemption does not grant or reserve
14-36 in the former owner of the real property the right to the use or
14-37 possession of the property, or to receive rents, income, or other
14-38 benefits from the property while the right of redemption exists.
14-39 (i) The owner of property who is entitled to redeem the
14-40 property under this section may request that the purchaser of the
14-41 property, or the taxing unit to which the property was bid off,
14-42 provide that owner a written itemization of all amounts spent by
14-43 the purchaser or taxing unit in costs on the property. The owner
14-44 must make the request in writing and send the request to the
14-45 purchaser at the address shown for the purchaser in the purchaser's
14-46 deed for the property, or to the business address of the collector
14-47 for the taxing unit, as applicable. The purchaser or the collector
14-48 shall itemize all amounts spent on the property in costs and
14-49 deliver the itemization in writing to the owner not later than the
14-50 10th day after the date the written request is received. Delivery
14-51 of the itemization to the owner may be made by depositing the
14-52 document in the United States mail, postage prepaid, addressed to
14-53 the owner at the address provided in the owner's written request.
14-54 Only those amounts included in the itemization provided to the
14-55 owner may be allowed as costs for purposes of redemption.
14-56 [(g) In this section, "residence homestead" has the meaning
14-57 assigned by Section 11.13.]
14-58 [(h) In this section, "agricultural use" has the meaning
14-59 assigned by Section 23.51.]
14-60 [(i) In this section, "costs" is defined to include all
14-61 those amounts reasonably expended by a purchaser or taxing unit in
14-62 the maintenance, preservation, and safekeeping of the property,
14-63 including but not limited to:]
14-64 [(1) insurance against fire, flood, and other hazards;]
14-65 [(2) repairs and improvements required by local
14-66 ordinance, building code, or by the terms of any existing lease of
14-67 the property, whether written or oral;]
14-68 [(3) discharge of mowing, cleaning, or demolition
14-69 liens against the property that secure expenses incurred by a
15-1 municipality;]
15-2 [(4) dues, assessments for maintenance, or liens
15-3 provided by recorded restrictive covenants affecting the property
15-4 and payable to a property owner's association; and]
15-5 [(5) standby fees payable to a water district, fresh
15-6 water supply district, or other municipality as authorized by law.]
15-7 SECTION 27. Section 42.031(b), Tax Code, is amended to read
15-8 as follows:
15-9 (b) A taxing unit may not intervene in or in any other
15-10 manner be made a party, whether as defendant or otherwise, to an
15-11 appeal of an order of the appraisal review board determining a
15-12 taxpayer protest under Subchapter C, Chapter 41, if the appeal was
15-13 brought by the property owner.
15-14 SECTION 28. Section 49.231, Water Code, is amended by
15-15 amending Subsections (j)-(l) and adding Subsections (o) and (p) to
15-16 read as follows:
15-17 (j) The board may:
15-18 (1) charge interest, at the rate of one percent a
15-19 month, on a standby fee not paid in a timely manner in accordance
15-20 with the resolution or order imposing the standby fee; [and]
15-21 (2) impose a penalty in connection with a standby fee
15-22 that is not paid in a timely manner in accordance with the
15-23 resolution or order imposing the standby fee; and
15-24 (3) refuse to provide potable water, sanitary sewer,
15-25 or drainage service to the property for which the fee was assessed
15-26 until all delinquent standby fees on the property, [and] interest
15-27 on those fees, and all penalties imposed in connection with the
15-28 delinquent standby fees are fully paid.
15-29 (k) A standby fee imposed under this section is a personal
15-30 obligation of the person owning the undeveloped property on January
15-31 1 of the year for which the fee is assessed. A person is not
15-32 relieved of the obligation on transfer of title to the property.
15-33 On January 1 of each year, a lien attaches to undeveloped property
15-34 to secure payment of any standby fee, interest on the fee, and any
15-35 penalty imposed under this section [and the interest, if any, on
15-36 the fee]. The lien has the same priority as a lien for taxes of
15-37 the district.
15-38 (l) If a standby fee imposed under this section is not paid
15-39 in a timely manner, a district may file suit to foreclose the lien
15-40 securing payment of the fee, [and] interest on the fee, and any
15-41 penalty imposed in connection with the fee or to enforce the
15-42 personal obligation for the fee, [and] interest on the fee, and any
15-43 penalty imposed in connection with the fee [or both]. In [The
15-44 district may recover, in] addition to the fee, [and] interest on
15-45 the fee, and any penalty imposed, the district may recover
15-46 reasonable costs, including attorney's fees, incurred by the
15-47 district in enforcing the lien or obligation not to exceed 20
15-48 percent of the delinquent fee, [and] interest on the fee, and any
15-49 penalty. A suit authorized by this subsection must be filed not
15-50 later than the fourth anniversary of the date the fee became due.
15-51 A fee delinquent for more than four years, [and] interest on the
15-52 fee, and any penalty imposed are considered paid unless a suit is
15-53 filed before the expiration of the four-year period.
15-54 (o) The amount of the penalty authorized by Subsection (j)
15-55 is six percent of the amount of the standby fee for the first
15-56 calendar month the standby fee is delinquent, plus an additional
15-57 one percent of the amount of the fee for each of the subsequent
15-58 four months, or portion of each of those months, the fee is unpaid,
15-59 except that if the fee remains unpaid on the first day of the sixth
15-60 month after the month in which the fee became due, the amount of
15-61 the penalty is 12 percent of the amount of the standby fee.
15-62 (p) This subsection applies only to the board of a district
15-63 that has entered into a contract with an attorney for the
15-64 collection of unpaid standby fees. In addition to the penalty
15-65 authorized by Subsection (j) and in accordance with the resolution
15-66 or order imposing a standby fee, the board may provide that a
15-67 standby fee that is not paid in a timely manner is subject to a
15-68 penalty to defray costs of collection of the unpaid standby fee.
15-69 The amount of the additional penalty under this subsection may not
16-1 exceed 15 percent of the amount of the standby fee, interest on the
16-2 fee, and any penalty imposed in connection with the fee. A penalty
16-3 under this subsection is incurred on the date set by the board.
16-4 The penalty may be imposed only if the district or the attorney
16-5 with whom the district has contracted notifies the property owner
16-6 of the penalty and the amount of the penalty at least 30 but not
16-7 more than 60 days before the date the penalty is incurred. A
16-8 district that imposes the additional penalty under this subsection
16-9 may not collect both the additional penalty and the attorney's fees
16-10 provided by Subsection (l).
16-11 SECTION 29. Chapter I, Texas Probate Code, is amended by
16-12 adding Section 5C to read as follows:
16-13 Sec. 5C. ACTIONS TO COLLECT DELINQUENT PROPERTY TAXES. (a)
16-14 This section applies only to a decedent's estate that:
16-15 (1) is being administered in a pending probate
16-16 proceeding; and
16-17 (2) owns or claims an interest in property against
16-18 which a taxing unit has imposed ad valorem taxes that are
16-19 delinquent.
16-20 (b) Notwithstanding any provision of this code to the
16-21 contrary, if the probate proceedings are pending in a foreign
16-22 jurisdiction or in a county other than the county in which the
16-23 taxes were imposed, a suit to foreclose the lien securing payment
16-24 of the taxes or to enforce personal liability for the taxes must be
16-25 brought under Section 33.41, Tax Code, in a court of competent
16-26 jurisdiction in the county in which the taxes were imposed.
16-27 (c) If the probate proceedings are pending in the county in
16-28 which the taxes were imposed, the taxing unit:
16-29 (1) must file a claim for the delinquent taxes in the
16-30 court in which the probate proceedings are pending in the same
16-31 manner as other claims against the estate or property that is part
16-32 of the estate; and
16-33 (2) may not bring a suit in any other court to
16-34 foreclose the lien securing payment of the taxes or to enforce
16-35 personal liability for the delinquent taxes before the fourth
16-36 anniversary of the date the application for the probate proceedings
16-37 was filed.
16-38 (d) To foreclose the lien securing payment of the taxes for
16-39 the delinquent taxes, the taxing unit must bring a suit under
16-40 Section 33.41, Tax Code, in a court of competent jurisdiction for
16-41 the county in which the taxes were imposed if:
16-42 (1) the probate proceedings have been pending in that
16-43 county for more than four years; and
16-44 (2) the taxing unit did not file a claim against the
16-45 estate or property that is part of the estate or the probate court
16-46 did not authorize payment of the taxes.
16-47 (e) In a suit brought under Subsection (d), the taxing unit:
16-48 (1) shall make the personal representative of the
16-49 decedent's estate a party to the suit; and
16-50 (2) may not seek to enforce personal liability for the
16-51 taxes against the estate of the decedent.
16-52 SECTION 30. Section 317(c), Texas Probate Code, is amended
16-53 to read as follows:
16-54 (c) Provisions Not Applicable to Certain Claims. The
16-55 foregoing provisions relative to the presentment of claims shall
16-56 not be so construed as to apply to a [the] claim:
16-57 (1) of any heir, devisee, or legatee who claims in
16-58 such capacity;
16-59 (2) [, or to any claim] that accrues against the
16-60 estate after the granting of letters for which the representative
16-61 of the estate has contracted; or
16-62 (3) for delinquent ad valorem taxes against a
16-63 decedent's estate that is being administered in probate in:
16-64 (A) a county other than the county in which the
16-65 taxes were imposed; or
16-66 (B) the same county in which the taxes were
16-67 imposed, if the probate proceedings have been pending for more than
16-68 four years.
16-69 SECTION 31. Section 801, Texas Probate Code, is amended to
17-1 read as follows:
17-2 Sec. 801. PRESENTMENT OF CLAIMS A PREREQUISITE FOR JUDGMENT.
17-3 (a) A judgment may not be rendered in favor of a claimant on any
17-4 claim for money that has not been legally presented to the guardian
17-5 of the estate of the ward and rejected by the guardian or by the
17-6 court, in whole or in part.
17-7 (b) Subsection (a) does not apply to a claim for delinquent
17-8 ad valorem taxes against the estate of a ward that is being
17-9 administered in probate in a county other than the county in which
17-10 the taxes were imposed.
17-11 SECTION 32. Article 2.07, Texas Non-Profit Corporation Act
17-12 (Article 1396-2.07, Vernon's Texas Civil Statutes), is amended by
17-13 adding Section D to read as follows:
17-14 D. Service of process, notice, or demand required or
17-15 permitted by law to be served by a political subdivision of this
17-16 state or by a person, including another political subdivision or an
17-17 attorney, acting on behalf of a political subdivision in connection
17-18 with the collection of a delinquent ad valorem tax may be served on
17-19 a corporation whose corporate privileges are forfeited under
17-20 Section 171.251, Tax Code, or is involuntarily dissolved under
17-21 Article 7.01 of this Act by delivering the process, notice, or
17-22 demand to any officer or director of the corporation, as listed in
17-23 the most recent records of the secretary of state. If the officers
17-24 or directors of the corporation are unknown or cannot be found,
17-25 service on the corporation may be made in the same manner as
17-26 service is made on unknown shareholders under law. Notwithstanding
17-27 any disability or reinstatement of a corporation, service of
17-28 process under this section is sufficient for a judgment against the
17-29 corporation or a judgment in rem against any property to which the
17-30 corporation holds title.
17-31 SECTION 33. Article 2.11, Texas Business Corporation Act, is
17-32 amended by adding Section D to read as follows:
17-33 D. Service of process, notice, or demand required or
17-34 permitted by law to be served by a political subdivision of this
17-35 state or by a person, including another political subdivision or an
17-36 attorney, acting on behalf of a political subdivision in connection
17-37 with the collection of a delinquent ad valorem tax may be served on
17-38 a corporation whose corporate privileges are forfeited under
17-39 Section 171.251, Tax Code, or is involuntarily dissolved under
17-40 Article 7.01 of this Act by delivering the process, notice, or
17-41 demand to any officer or director of the corporation, as listed in
17-42 the most recent records of the secretary of state. If the officers
17-43 or directors of the corporation are unknown or cannot be found,
17-44 service on the corporation may be made in the same manner as
17-45 service is made on unknown shareholders under law. Notwithstanding
17-46 any disability or reinstatement of a corporation, service of
17-47 process under this section is sufficient for a judgment against the
17-48 corporation or a judgment in rem against any property to which the
17-49 corporation holds title.
17-50 SECTION 34. Article 8.10, Texas Business Corporation Act, is
17-51 amended by adding Section E to read as follows:
17-52 E. Service of process, notice, or demand required or
17-53 permitted by law to be served by a political subdivision of this
17-54 state or by a person, including another political subdivision or an
17-55 attorney, acting on behalf of a political subdivision in connection
17-56 with the collection of a delinquent ad valorem tax may be served on
17-57 a foreign corporation whose privileges to transact business in this
17-58 state are forfeited under Section 171.251, Tax Code, or whose
17-59 certificate of authority is revoked under Article 8.16 of this Act
17-60 by delivering the process, notice, or demand to any officer or
17-61 director of the foreign corporation, as listed in the most recent
17-62 records of the secretary of state. If the officers or directors of
17-63 the foreign corporation are unknown or cannot be found, service on
17-64 the foreign corporation may be made in the same manner as service
17-65 is made on unknown shareholders under law. Notwithstanding any
17-66 disability or reinstatement of a foreign corporation, service of
17-67 process under this section is sufficient for a judgment against the
17-68 foreign corporation or a judgment in rem against any property to
17-69 which the foreign corporation holds title.
18-1 SECTION 35. The following statutes are repealed:
18-2 (1) Section 33.51, Tax Code, as amended by Chapter
18-3 914, Acts of the 75th Legislature, Regular Session, 1997; and
18-4 (2) Section 34.05(g), Tax Code, as amended by Chapters
18-5 712 and 906, Acts of the 75th Legislature, Regular Session, 1997.
18-6 SECTION 36. (a) Except as otherwise provided by Subsection
18-7 (b) of this section, this Act takes effect September 1, 1999.
18-8 (b) Sections 1, 2, 3, 4, 6, 7, 9, and 28 of this Act take
18-9 effect January 1, 2000.
18-10 SECTION 37. The change in law made by Section 4 of this Act
18-11 applies to all liens for which notice may be filed under Section
18-12 32.015, Tax Code, with the Texas Department of Housing and
18-13 Community Affairs on or after January 1, 2000.
18-14 SECTION 38. The change in law made by Section 9 of this Act
18-15 applies to the notice required to be given by Section 33.04(b), Tax
18-16 Code, in and after 2000. Penalties and interest on a delinquent
18-17 tax are not canceled under Section 33.04, Tax Code, for failure to
18-18 deliver a notice required by Section 33.04(b) of that code as it
18-19 existed immediately before the effective date of this Act if the
18-20 notice is not required by Section 33.04(b) of that code as amended
18-21 by this Act.
18-22 SECTION 39. The changes in law made by Sections 14 and 15
18-23 of this Act apply to all tax suits, regardless of when commenced,
18-24 in which judgment is entered on or after September 1, 1999.
18-25 SECTION 40. The changes in law made by Sections 16, 17, and
18-26 19 of this Act apply to all tax sales conducted on or after
18-27 September 1, 1999, whether the judgment on which the sale is based
18-28 was entered before, on, or after that date. For purposes of this
18-29 section, the date on which a tax sale was conducted is considered
18-30 to be the first Tuesday of the month in which the public auction
18-31 occurred.
18-32 SECTION 41. The changes in law made by Section 20 of this
18-33 Act apply to the disposition of excess proceeds of a property tax
18-34 foreclosure or summary sale paid into court regardless of the date
18-35 on which the sale occurred or the date on which the proceeds were
18-36 paid into the court.
18-37 SECTION 42. The changes in law made by Sections 22 and 24 of
18-38 this Act apply to any resale of property conducted on or after
18-39 September 1, 1999, based on a judgment signed before, on, or after
18-40 that date. For purposes of this section, the date on which a
18-41 resale was conducted is considered to be the date on which the
18-42 grantor's acknowledgment was taken or, if multiple grantors, the
18-43 latest date of acknowledgment of the various grantors.
18-44 SECTION 43. The change in law made by Section 25 of this Act
18-45 applies to any tax resale of property based on an original tax sale
18-46 conducted before, on, or after September 1, 1999.
18-47 SECTION 44. The change in law made by Section 26 of this Act
18-48 applies to redemption of real property sold at a tax sale conducted
18-49 on or after September 1, 1999, whether the judgment on which the
18-50 sale is based was entered before, on, or after September 1, 1999.
18-51 Redemption of real property sold at a tax sale conducted before
18-52 September 1, 1999, is governed by the law in effect when the sale
18-53 occurred, and the former law is continued in effect for that
18-54 purpose. For purposes of this section, the date on which a tax
18-55 sale was conducted is considered to be the first Tuesday of the
18-56 month in which the public auction occurred.
18-57 SECTION 45. The changes in law made by Sections 29, 30, and
18-58 31 of this Act apply to the estates of all decedents, regardless of
18-59 the date of death, and to the estates of all wards, regardless of
18-60 the date the application for appointment of a guardian was filed,
18-61 and to all causes of action pending on September 1, 1999, or
18-62 brought after that date.
18-63 SECTION 46. The changes in law made by Sections 32, 33, and
18-64 34 apply to all actions pending on September 1, 1999, and to any
18-65 actions brought after that date.
18-66 SECTION 47. The importance of this legislation and the
18-67 crowded condition of the calendars in both houses create an
18-68 emergency and an imperative public necessity that the
18-69 constitutional rule requiring bills to be read on three several
19-1 days in each house be suspended, and this rule is hereby suspended.
19-2 * * * * *