By: Wentworth S.B. No. 1402
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to procedural and technical corrections of the Texas
1-2 Property Tax Code and the Texas Finance Code, and relating to
1-3 notices of sale, orders of sale, proceeds of sale, excess proceeds
1-4 of sale, redemptions in delinquent tax suits, collection of taxes
1-5 on sale of business, additional penalty on taxes with delayed
1-6 delinquency dates and on delinquent standby fees, notices of
1-7 delinquency, subrogation of purchasers at void or defective tax
1-8 resales, taxes to be included in judgments, jurisdictional
1-9 provisions for tax claims against certain estates in probate,
1-10 service of process on corporations following forfeiture of
1-11 corporate privileges, and repeals of overlapping and duplicate
1-12 provisions in the Tax Code.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 25.06, Tax Code, is amended to read as
1-15 follows:
1-16 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
1-17 INTEREST. Except as provided by Section 25.07 of this code,
1-18 property encumbered by a leasehold or other possessory interest or
1-19 by a mortgage, deed of trust, or other interest securing payment or
1-20 performance of an obligation shall be listed in the name of the
1-21 owner of the property so encumbered. Unless otherwise directed in
1-22 writing under Section 1.111(f) of this code, property subject to an
2-1 installment contract of sale shall be listed under the name of the
2-2 seller if the installment contract is not filed of record in the
2-3 real property records of the county.
2-4 SECTION 2. Sec. 31.03, Tax Code, is amended by adding
2-5 Subsections (d) and (e) to read as follows:
2-6 (d) The governing body of a taxing unit or appraisal
2-7 district which has by official action imposed the additional
2-8 penalty provided by Section 33.07 of this code, and which taxing
2-9 unit or appraisal district has also provided for the split payment
2-10 under this section, may further provide, in the manner required by
2-11 law for official action by the body, that taxes subject to this
2-12 section and becoming delinquent on July 1 incur an additional
2-13 penalty on the date provided by Subsection (e) of this section if
2-14 the taxing unit or appraisal district or another taxing unit that
2-15 collects taxes for the unit has contracted with an attorney
2-16 pursuant to Section 6.30 of this code. The penalty is to defray
2-17 costs of collection, and the amount of the penalty may not exceed
2-18 15 percent of the amount of taxes, penalty, and interest due.
2-19 (e) Upon delivery by the tax collector of a notice of
2-20 delinquency and of the additional penalty to the property owner,
2-21 the penalty is incurred on the first day of the next month
2-22 following the delinquency that will provide a period of at least 21
2-23 days after the date of delivery of the notice. A tax lien attaches
2-24 to the property on which the tax is imposed to secure payment of
2-25 the additional penalty. If a taxing unit or appraisal district
2-26 provides for the additional penalty under this section, neither the
3-1 taxing unit nor the appraisal district may recover attorney's fees
3-2 in a suit to collect delinquent taxes subject to the penalty.
3-3 SECTION 3. Sec. 31.031, Tax Code, is amended by adding
3-4 Subsections (e) and (f) to read as follows:
3-5 (e) The governing body of a taxing unit or appraisal
3-6 district which has by official action imposed the additional
3-7 penalty provided by Section 33.07 of this code may further provide,
3-8 in the manner required by law for official action by the body, that
3-9 taxes to which this section applies and which become delinquent on
3-10 or after June 1 incur an additional penalty on the date provided by
3-11 Subsection (f) of this section if the taxing unit or appraisal
3-12 district or another taxing unit that collects taxes for the unit
3-13 has contracted with an attorney pursuant to Section 6.30 of this
3-14 code. The penalty is to defray costs of collection, and the amount
3-15 of the penalty may not exceed 15 percent of the amount of taxes,
3-16 penalty, and interest due.
3-17 (f) Upon delivery by the tax collector of a notice of
3-18 delinquency and of the additional penalty to the property owner,
3-19 the penalty is incurred on the first day of the next month
3-20 following the delinquency that will provide a period of at least 21
3-21 days after the date of delivery of the notice. A tax lien attaches
3-22 to the property on which the tax is imposed to secure payment of
3-23 the additional penalty. If a taxing unit or appraisal district
3-24 provides for the additional penalty under this section, neither the
3-25 taxing unit nor the appraisal district may recover attorney's fees
3-26 in a suit to collect delinquent taxes subject to the penalty.
4-1 SECTION 4. Section 31.032, Tax Code, is amended by
4-2 redesignating Subsections (f) and (g) as Subsections (h) and (I)
4-3 respectively, and by adding new Subsections (f) and (g) to read as
4-4 follows:
4-5 (f) The governing body of a taxing unit or appraisal
4-6 district which has by official action imposed the additional
4-7 penalty provided by Section 33.07 of this code may further provide,
4-8 in the manner required by law for official action by the body, that
4-9 taxes to which this section applies and which become delinquent on
4-10 or after June 1 incur an additional penalty on the date provided by
4-11 Subsection (g) of this section if the taxing unit or appraisal
4-12 district or another taxing unit that collects taxes for the unit
4-13 has contracted with an attorney pursuant to Section 6.30 of this
4-14 code. The penalty is to defray costs of collection, and the amount
4-15 of the penalty may not exceed 15 percent of the amount of taxes,
4-16 penalty, and interest due.
4-17 (g) Upon delivery by the tax collector of a notice of
4-18 delinquency and of the additional penalty to the property owner,
4-19 the penalty is incurred on the first day of the next month
4-20 following the delinquency that will provide a period of at least 21
4-21 days after the date of delivery of the notice. A tax lien attaches
4-22 to the property on which the tax is imposed to secure payment of
4-23 the additional penalty. If a taxing unit or appraisal district
4-24 provides for the additional penalty under this section, neither the
4-25 taxing unit nor the appraisal district may recover attorney's fees
4-26 in a suit to collect delinquent taxes subject to the penalty.
5-1 (h) [(f)] The comptroller shall adopt rules to implement
5-2 this section.
5-3 (I) [(g)] In this section: (1) "Disaster" has the meaning
5-4 assigned by Section 418.004, Government Code.
5-5 (2) "Disaster area" has the meaning assigned by Section
5-6 151.350.
5-7 SECTION 5. Sec. 31.04, Tax Code, is amended by adding
5-8 Subsections (f) and (g) to read as follows:
5-9 (f) The governing body of a taxing unit or appraisal
5-10 district which has by official action imposed the additional
5-11 penalty provided by Section 33.07 of this code may further provide,
5-12 in the manner required by law for official action by the body, that
5-13 taxes to which this section applies and which become delinquent on
5-14 or after June 1 incur an additional penalty on the date provided by
5-15 Subsection (g) of this section if the taxing unit or appraisal
5-16 district or another taxing unit that collects taxes for the unit
5-17 has contracted with an attorney pursuant to Section 6.30 of this
5-18 code. The penalty is to defray costs of collection, and the amount
5-19 of the penalty may not exceed 15 percent of the amount of taxes,
5-20 penalty, and interest due.
5-21 (g) Upon delivery by the tax collector of a notice of
5-22 delinquency and of the additional penalty to the property owner,
5-23 the penalty is incurred on the first day of the next month
5-24 following the delinquency that will provide a period of at least 21
5-25 days after the date of delivery of the notice. A tax lien attaches
5-26 to the property on which the tax is imposed to secure payment of
6-1 the additional penalty. If a taxing unit or appraisal district
6-2 provides for the additional penalty under this section, neither the
6-3 taxing unit nor the appraisal district may recover attorney's fees
6-4 in a suit to collect delinquent taxes subject to the penalty.
6-5 SECTION 6. Chapter 31, Tax Code, is amended by adding
6-6 Section 31.081 to read as follows:
6-7 Sec. 31.081. PROPERTY TAX COLLECTION ON TERMINATION OR SALE
6-8 OF BUSINESS. (a) If a person who is liable under this title for
6-9 the payment of taxes assessed against personal property used in the
6-10 operation of a business sells the business or inventory of the
6-11 business or quits the business, the successor to the seller or the
6-12 seller's assignee shall withhold an amount of the purchase price
6-13 sufficient to pay all of the personal property taxes, penalties and
6-14 interest due until the seller provides a receipt from the tax
6-15 collector showing that the taxes, penalties and interest have been
6-16 paid or a tax certificate under Section 31.08 of this code stating
6-17 that no amount is due.
6-18 (b) The purchaser of a business or inventory who fails to
6-19 withhold an amount of the purchase price as required by this
6-20 section is liable for the amount required to be withheld to the
6-21 extent of the value of the purchase price.
6-22 (c) The purchaser of a business or inventory may request
6-23 that the tax collector issue a tax certificate stating that no tax
6-24 is due or issue a statement of the amount required to be paid in
6-25 order to have a certificate that no tax is due. The tax collector
6-26 shall issue the certificate or statement within 10 days after
7-1 receiving the request.
7-2 (d) If the tax collector fails to mail the certificate or
7-3 statement within the 10 day period provided by Subsection (c) of
7-4 this section, the purchaser is released from the obligation to
7-5 withhold the purchase price or pay the amounts due.
7-6 (e) Any action to enforce the obligation of a purchaser
7-7 under this section must be brought not later than four years after
7-8 the day the former owner of the business sells the business or
7-9 inventory. Any action to enforce the purchaser's obligation under
7-10 this section is further subject to a limitation plea by the
7-11 purchaser as to any taxes more than four years delinquent as of the
7-12 date of issuance of the tax collector's statement under Subsection
7-13 (c) of this section.
7-14 (f) This section shall not operate so as to absolve the
7-15 seller of personal liability under this title for the payment of
7-16 taxes.
7-17 (g) A "sale of a business" is deemed to have occurred under
7-18 this section if the purchaser acquires the name of the business or
7-19 the goodwill associated with the business.
7-20 (h) A "sale of the inventory" of a business is deemed to
7-21 have occurred under this section if the purchaser acquires an
7-22 amount of the inventory, the value of which equals one half or more
7-23 of the value of the seller's entire inventory as of the date of
7-24 sale.
7-25 (I) The phrase "value of the purchase price" as used in
7-26 Subsection (b) of this section includes any promissory note given
8-1 in consideration of the sale to the extent of the note's market
8-2 value on the day of sale, regardless of whether the purchaser has
8-3 yet been required to make any payments on the note.
8-4 SECTION 7. Subsection (a), Section 31.12, Tax Code, is
8-5 amended to read as follows:
8-6 Sec. 31.12. Payment of Tax Refunds; Interest. (a) If a
8-7 refund of a tax provided by Section 11.431(b), 26.07(g), 26.15(f),
8-8 or 31.11 is paid on or before the 90th [60th] day after the date
8-9 the liability for the refund arises, no interest is due on the
8-10 amount refunded. If not paid on or before that 90th [60th] day,
8-11 the amount of the tax to be refunded accrues interest at a rate of
8-12 one percent for each month or part of a month that the refund is
8-13 unpaid, beginning with the date on which the liability for the
8-14 refund arises.
8-15 SECTION 8. Section 32.01, Tax Code, is amended to
8-16 redesignate the existing Subsection (c) as Subsection (d) and by
8-17 adding a new Subsection (c), to read as follows:
8-18 (c) With respect to an owner's real property, the
8-19 description for which may be ascertained with certainty by metes
8-20 and bounds contained in instruments of conveyance, and part of
8-21 which constitutes the owner's residence homestead taxed separately
8-22 and apart from the remainder of the property, the liens under this
8-23 section securing the taxes imposed on both the homestead and the
8-24 remainder of the property owned extend in solido to the owner's
8-25 entire property as described in the instrument or instruments of
8-26 conveyance.
9-1 (d) [(c)] The lien under this section is perfected on
9-2 attachment and, except as provided by Section 32.03(b), perfection
9-3 requires no further action by the taxing unit.
9-4 SECTION 9. Subsection (b), Section 32.015, Tax Code, is
9-5 amended to read as follows:
9-6 (b) The collector may simultaneously file notice of tax
9-7 liens of all the taxing units served by the collector. However,
9-8 notice of any lien for taxes for the prior calendar year must be
9-9 filed with the department prior to September 1 of the following
9-10 year. Any lien for which the notice is not filed by such date is
9-11 unenforceable against [extinguished and is not enforceable]:
9-12 (1) a bona fide purchaser for value who is without
9-13 notice and actual knowledge, and
9-14 (2) a holder of a lien recorded on the manufactured
9-15 home document of title.
9-16 SECTION 10. Section 32.05, Tax Code, is amended by adding
9-17 Subsections (d) and (e) to read as follows:
9-18 (d) In Subsection (b) of this section, "holder of a lien"
9-19 includes a property owners' association or homeowners' association
9-20 which claims a lien perfected under recorded restrictive covenants
9-21 running with the land encumbered by the tax lien.
9-22 (e) In Subsection (c) of this section, "recorded restrictive
9-23 covenants" shall not be construed to include a lien perfected under
9-24 those restrictive covenants and held by a property owners'
9-25 association or homeowners' association.
9-26 SECTION 11. Subsections (e) and (g), Section 32.07, Tax
10-1 Code, are amended to read as follows:
10-2 (e) [With respect to an ad valorem tax or other money
10-3 subject to the provisions of Subsection (d), a] An individual who
10-4 controls or supervises the collection of tax or money from another
10-5 person, or an individual who controls or supervises the accounting
10-6 for and paying over of the tax or money, and who wilfully fails to
10-7 pay or cause to be paid the tax or money is liable as a responsible
10-8 individual for an amount equal to the tax or money, plus all
10-9 interest, penalties and costs, not paid or caused to be paid. The
10-10 liability imposed by this subsection is in addition to any other
10-11 penalty provided by law. The dissolution of a corporation,
10-12 association, limited liability company, or partnership does not
10-13 affect a responsible individual's liability under this subsection.
10-14 (g) In this section:
10-15 (1) "Responsible individual" includes an officer,
10-16 manager, director, or employee or a corporation, association, or
10-17 limited liability company or a member of a partnership who, as an
10-18 officer, manager, director, employee, or member, is under a duty to
10-19 perform an act with respect to the collection, accounting, or
10-20 payment of a tax or money subject to the provisions of Subsection
10-21 (d).
10-22 (2) "Tax" includes any ad valorem tax or money subject
10-23 to the provisions of Subsection (d), including the penalty and
10-24 interest computed by reference to the amount of the tax or money.
10-25 (3) "The person who owns or acquires the property"
10-26 includes the seller of property subject to an installment contract
11-1 of sale together with any purchaser whose obligations under such a
11-2 contract includes the obligation to pay taxes on the property.
11-3 SECTION 12. Subsection (a), Section 33.011, Tax Code, is
11-4 amended to read as follows:
11-5 Sec. 33.011. Waiver of Penalties and Interest. (a) The
11-6 governing body of a taxing unit shall waive penalties and may
11-7 provide for the waiver of interest on a delinquent tax if an act or
11-8 omission of an officer, employee, or agent of the taxing unit or
11-9 the appraisal district in which the taxing unit participates caused
11-10 or resulted in the taxpayer's failure to pay the tax before
11-11 delinquency and if the tax is paid within 21 days after the
11-12 taxpayer knows or should know of the delinquency. The governing
11-13 body of a taxing unit may delegate to the tax assessor-collector
11-14 the authority to waive penalties and interest pursuant to this
11-15 Subsection and subject to any provisions by the governing body for
11-16 limitations or restrictions on that authority
11-17 SECTION 13. Subsections (b) and (c), Section 33.04, Tax Code
11-18 are amended and Subsections (d), (e) and (f) are added to the
11-19 section, to read as follows:
11-20 (b) In addition to the notice required by Subsection (a) of
11-21 this section, the tax collector for each taxing unit in each year
11-22 divisible by five shall deliver by mail a written notice of
11-23 delinquency to:
11-24 (1) each person whose name and address is listed on the most
11-25 recent certified appraisal roll if the property so listed on that
11-26 roll is shown by the tax collector's records as having [who owes a
12-1 tax that has] been delinquent more than one year; and [whose name
12-2 and mailing address are known to the collector or can be determined
12-3 by the exercise of reasonable diligence.]
12-4 (2) each person who owes a tax that has been delinquent more
12-5 than one year on personal property or on an interest in a mineral
12-6 estate which is no longer listed on the current appraisal roll
12-7 under that person's name, but whose name and mailing address are
12-8 known to the collector.
12-9 (c) The tax collector [He] shall state in the notice
12-10 required by Subsection (b) of this section the amount of the
12-11 delinquent tax, penalties, and interest due, the description of the
12-12 property on which the tax was imposed, and the year for which the
12-13 tax is delinquent. Any notices required by Subsection (b) [If the
12-14 person owes delinquent taxes] for more than one year or on more
12-15 than one property[, the collector] may be included [all the
12-16 delinquent taxes the person owes] in a single notice.
12-17 (d) A failure by [(c) Penalties and interest on a tax
12-18 delinquent more than five years or a multiple of five years are
12-19 cancelled and may not be collected. If] the collector to [has not]
12-20 deliver[ed] the notice required by Subsection (b) of this section
12-21 constitutes an affirmative defense available to the person entitled
12-22 to the notice in any suit brought against that person for the
12-23 enforced collection of penalties and interest on taxes delinquent
12-24 more than five years or a multiple of five years. [in each year
12-25 divisible by five following the date on which the tax first became
12-26 delinquent for one year.]
13-1 (e) Notwithstanding the provisions of Subsection (d) of this
13-2 section, interest and penalty on a tax resumes and shall be
13-3 collected by the tax collector if, subsequent to any failure to
13-4 deliver the notice required by Subsection (b), the tax collector
13-5 thereafter delivers the notice in any year divisible by five. The
13-6 resumption of interest and penalty on the tax is prospective only
13-7 and begins to accrue at the rates provided by Section 33.01 on the
13-8 first day of the next month following the delivery of the notice
13-9 which will provide a period of at least 21 days after the date of
13-10 delivery.
13-11 (f) A notice under this section is presumed delivered when
13-12 it is deposited in regular first class mail, with postage prepaid,
13-13 and addressed to the person designated under Subsection (b).
13-14 Notwithstanding the provisions of Section 1.07 of this code, the
13-15 presumption of delivery under this section may not be rebutted with
13-16 evidence of failure to receive the notice.
13-17 SECTION 14. Subsection (a), Section 33.47, Tax Code is
13-18 amended to read as follows:
13-19 Sec. 33.47. Tax Records as Evidence. (a) In a suit to
13-20 collect a delinquent tax, the taxing unit's current tax roll and
13-21 delinquent tax roll or certified copies of the entries showing the
13-22 property and the amount of the tax, penalties and interest imposed
13-23 constitute prima facie evidence that each person charged with a
13-24 duty relating to the imposition of the tax, penalties and interest
13-25 has complied with all requirements of law and that the amount of
13-26 tax, penalties and interest alleged to be delinquent against the
14-1 property listed is the correct amount.
14-2 SECTION 15. Subsection (b), Section 33.50, Tax Code, is
14-3 amended to read as follows:
14-4 (b) If the judgment in a suit to collect a delinquent tax is
14-5 for the foreclosure of a tax lien on property, the order of sale
14-6 shall specify that the property may be sold to a taxing unit that
14-7 is a party to the suit or to any other person, other than a person
14-8 owning an interest in the property or any party to the suit that is
14-9 not a taxing unit for the market value of the property stated in
14-10 the judgment or the aggregate amount of the judgments against the
14-11 property, whichever is less. The order of sale shall further
14-12 specify that the property may not be sold to a person owning an
14-13 interest in the property or to any party to the suit that is not a
14-14 taxing unit unless;
14-15 (1) that person or party is the highest bidder at the
14-16 tax sale, and
14-17 (2) the bid by that person or party equals or exceeds
14-18 the aggregate amount of the judgments against the property,
14-19 including all costs of suit and sale.
14-20 SECTION 16. Section 33.51, Tax Code, as amended by Acts
14-21 1997, 75th Legislature, ch. 914, Section 6, is repealed.
14-22 SECTION 17. Section 33.51, Tax Code, as amended by Acts
14-23 1997, 75th Legislature, ch. 1111, Section 2, is repealed.
14-24 SECTION 18. Section 33.52, Tax Code, and its heading are
14-25 amended to read as follows:
14-26 Sec. 33.52. TAXES TO BE INCLUDED IN JUDGMENT. [JUDGMENT FOR
15-1 CURRENT TAXES] (a) Only taxes that are delinquent on the date of
15-2 a judgment shall be included in the amount recovered by the taxing
15-3 units. In lieu of stating the aggregate total of tax, penalties and
15-4 interest due as a liquidated sum, a judgment is sufficient if it
15-5 merely sets out the base tax due for each year and provides that
15-6 penalties and interest accrue on the unpaid balance pursuant to
15-7 Subchapter A of this Chapter. For the purposes of calculating
15-8 penalties and interest due pursuant to the judgment it shall be
15-9 presumed that the delinquency date is February 1 of the year
15-10 following the year in which the tax was imposed unless otherwise
15-11 stated in the judgment.
15-12 (b) A taxing unit's claim for taxes that become delinquent
15-13 after the date of the judgment shall not be affected by the entry
15-14 of a judgment or any sale conducted pursuant to such a judgment and
15-15 may be collected by any of the remedies provided by this Code.
15-16 SECTION 19. Section 33.52, Tax Code, as amended by Acts
15-17 1997, 75th Legislature, ch. 906, Section 8, is repealed.
15-18 SECTION 20. Section 33.52, Tax Code, as amended by Acts
15-19 1997, 75th Legislature, ch. 981, Section 2, is repealed.
15-20 SECTION 21. Section 33.52, Tax Code, as amended by Acts
15-21 1997, 75th Legislature, ch. 1111, Section 3, is repealed.
15-22 SECTION 22. Subsection (a), Section 33.53, Tax Code, is
15-23 amended to read as follows:
15-24 Sec. 33.53. Order of Sale; Payment Before Sale. (a) If
15-25 judgment in a suit to collect a delinquent tax is for foreclosure
15-26 of a tax lien, the court shall order the property sold in
16-1 satisfaction of the amount of the judgment. Upon application by
16-2 any taxing unit that is a party to the judgment, the district clerk
16-3 shall prepare an order to an officer authorized to conduct
16-4 execution sales, ordering the sale of the property. The taxing
16-5 unit may specify particular parcels of the property to be sold if
16-6 multiple parcels are included in the judgment. A taxing unit may
16-7 request more than one order of sale, if necessary to collect all
16-8 amounts due under the judgment. The order of sale shall be
16-9 returnable to the district clerk as unexecuted if not executed
16-10 within one-hundred-eighty (180) days after issuance. The order of
16-11 sale may be accompanied with an attached copy of the judgment and a
16-12 bill of costs and may incorporate the terms of either by reference.
16-13 It is not required that the attached copies of the judgment and
16-14 bill of costs be certified.
16-15 SECTION 23. Section 34.01, Tax Code, is amended to read as
16-16 follows:
16-17 Sec. 34.01. SALE OF PROPERTY. (a) Property seized or
16-18 ordered sold pursuant to foreclosure of a tax lien shall be sold by
16-19 the officer charged with the sale, unless otherwise directed by the
16-20 taxing unit that requested the order, its agent or attorney. The
16-21 sale shall be conducted in the manner similar property is sold
16-22 under execution except as otherwise provided by this subtitle.
16-23 [subchapter.]
16-24 (b) Upon receipt of an order of sale of real property, the
16-25 officer charged with the sale shall indorse thereon the exact hour
16-26 and day of receipt, which indorsement shall constitute a levy on
17-1 the property without necessity for going upon the ground. The
17-2 officer shall calculate the total amount due under the judgment,
17-3 including the taxes, penalties and interest due, any other amounts
17-4 awarded by the judgment, court costs, and the costs of the sale,
17-5 including the costs of advertising under Subsection (c) of this
17-6 section. For the purposes of making this calculation, the tax
17-7 assessor-collector of each taxing unit which is party to the
17-8 judgment may provide the officer with a certified tax statement
17-9 showing the amount due as of the date of the proposed sale. If
17-10 provided, the officer shall rely on the amounts so certified by the
17-11 tax assessor-collector and shall have no responsibility or
17-12 liability for the accuracy of that portion of the calculation.
17-13 (c) The officer charged with the sale shall give written
17-14 notice of the sale, in the manner prescribed by Rule 21a, Texas
17-15 Rules of Civil Procedure, and in a form which substantially
17-16 conforms to the requirements of Subsection (d) of this section, to
17-17 all persons who were defendants to the judgment, or their attorney,
17-18 and the officer shall advertise the time and place of the sale by
17-19 having the notice thereof published in the English language a
17-20 minimum of one time in some newspaper published in the county where
17-21 the sale is to occur. One such notice must appear in the
17-22 publication not less than 20 days immediately preceding the day of
17-23 sale. Neither the officer's failure to send nor a defendant's
17-24 failure to receive the written notice of sale shall, standing
17-25 alone, invalidate the sale or the title conveyed by the sale.
17-26 (d) The notice of sale required by Subsection (c) of this
18-1 section may contain one or more properties foreclosed by a single
18-2 judgment or one or more properties foreclosed by multiple judgments
18-3 in more than one cause of action, and shall contain a statement of
18-4 the authority by virtue of which the sale is to be made, the date,
18-5 time and place of sale, and a brief description of the property to
18-6 be sold. In describing the property, the notice is sufficient by
18-7 giving the number of acres and original survey, or, if within a
18-8 platted subdivision or addition, whether recorded or not, by giving
18-9 the name by which the land is generally known with reference to
18-10 that subdivision or addition, or by adopting the description as
18-11 contained in the judgment. It is not required that the notice
18-12 contain field notes in describing the property. Publishers of
18-13 newspapers publishing the notice shall charge the rate of Two (2)
18-14 Cents per word for the publication, or such newspapers shall be
18-15 entitled to charge for such publication at a rate equal to but not
18-16 in excess of the published word or line rate of that newspaper for
18-17 such class of advertising. If there be no newspaper published in
18-18 the county of the sale, or none which will publish the notice of
18-19 sale for the compensation herein fixed, the officer shall then post
18-20 such notice in writing in three public places in the county, one of
18-21 which shall be at the courthouse door of such county, for at least
18-22 twenty days successively next before the day of sale.
18-23 (e) [(b)] The owner of real property subject to the sale may
18-24 file with the officer charged with the sale a written request that
18-25 the property be divided and that only as many portions be sold as
18-26 is necessary to pay the [tax, penalties, interest, and costs
19-1 adjudged due against the property] amount due as calculated in
19-2 subsection (b) above. In the request the owner shall describe the
19-3 desired portions and shall specify the order in which the portions
19-4 should be sold, provided however, that the owner may not specify
19-5 portions which divide buildings or other contiguous improvements or
19-6 specify more than four (4) portions, and such request must be
19-7 delivered to the officer not less than seven (7) days prior to the
19-8 date of the sale.
19-9 (f) [(c)] If a sufficient bid is not received[,] to pay the
19-10 amount calculated under Subsection (b) of this section or the
19-11 adjudged value, whichever is less, the taxing unit that requested
19-12 the order of sale may terminate the sale at that time. If the
19-13 taxing unit does not terminate the sale, the officer making the
19-14 sale shall bid the property off to the [a] taxing unit that
19-15 requested the order of sale, unless otherwise agreed by all of the
19-16 taxing units that are parties to the judgment, [is a party to the
19-17 judgment] for the aggregate amount of the judgment against the
19-18 property or for the market value of the property as specified in
19-19 the judgment, whichever is less. The duty of the officer to bid
19-20 off the property to a taxing unit under this Subsection is
19-21 self-executing, and the actual attendance of a taxing unit
19-22 representative at the sale is not a prerequisite to that duty. The
19-23 taxing unit takes title to the property for the use and benefit of
19-24 itself and all other taxing units that established tax liens in the
19-25 suit. The taxing unit's title includes all the interest owned by
19-26 the defendant, including the defendant's right to the use and
20-1 possession of the property, subject only to the defendant's right
20-2 of redemption. Payments in satisfaction of the judgment and any
20-3 costs or expenses of sale may not be required of the purchasing
20-4 taxing unit until the property is redeemed or resold by the
20-5 [purchasing] taxing unit. Notwithstanding that the property has
20-6 been bid off to a taxing unit as herein provided, a taxing unit
20-7 that established tax liens in the suit may continue to enforce
20-8 collection of any amount due from the owner(s), including any
20-9 post-judgment taxes, penalties and interest assessed by the taxing
20-10 unit against the property, in any other manner or by pursuing any
20-11 other remedy provided by law.
20-12 (g) [(d)] The officer making the sale shall prepare a deed
20-13 to the purchaser of real property at the sale, [or] to any other
20-14 person whom the purchaser may specify[.], or to the taxing unit if
20-15 the property was bid off. The taxing unit that requested the order
20-16 of sale may elect to prepare a deed for execution by the officer.
20-17 The officer shall execute the deed and file the deed for recording
20-18 with the county clerk with instructions to the county clerk to
20-19 return the deed after recording to the grantee. The county clerk
20-20 shall file and record all such deeds without imposing any recording
20-21 or other fees. The deed vests good and perfect title in the
20-22 purchaser or the purchaser's assigns to the interest owned by the
20-23 defendant in the property subject to the foreclosure, including the
20-24 defendant's right to the use and possession of the property,
20-25 subject only to the defendant's right of redemption, the terms and
20-26 provisions of any recorded restrictive covenants running with the
21-1 land, if such covenants were recorded prior to January 1 of the
21-2 year the tax lien arose, any recorded lien arising under those
21-3 restrictive covenants unless the same was extinguished in the
21-4 judgment foreclosing the tax liens, and valid easements of record
21-5 as of the date of the sale, if such covenants or easements were
21-6 recorded prior to January 1 of the year the tax lien arose. The
21-7 deed may be impeached only for fraud.
21-8 (h) [(e)] Notwithstanding Subsection (f) [(c)], if a
21-9 sufficient bid is not received, the officer making the sale may bid
21-10 property seized under Subchapter E, Chapter 33, off to a person
21-11 described by Section 11.181 for less than the tax warrant amount or
21-12 the market value of the property. Consent to the sale by the
21-13 taxing units entitled to receive proceeds of the sale is not
21-14 required.
21-15 (I) [(f)] Except as provided in Subsection (h) [(e)],
21-16 property seized under Subchapter E, Chapter 33, may not be sold for
21-17 an amount that is less than the lesser of the market value of the
21-18 property or the total amount of taxes due on the property. A
21-19 taxing unit that takes title to property seized under that
21-20 subchapter takes title to the property for the use and benefit of
21-21 that taxing unit and all other taxing units that established tax
21-22 liens in the suit or that, on the date of the seizure, were owed
21-23 delinquent taxes on the property.
21-24 (j) A sale of real property under this section shall take
21-25 place at the county courthouse in the county in which the land is
21-26 located. The sale shall occur in the same area of the courthouse
22-1 as designated by the commissioners court of the county for the sale
22-2 of real property pursuant to Section 51.002, Property Code.
22-3 (k) To the extent that the rules governing executions under
22-4 the Texas Rules of Civil Procedure are in conflict with this
22-5 section, the provisions of this section prevail and govern the
22-6 duties of the officer conducting the sale.
22-7 SECTION 24. Subsection (a), Section 34.015, Tax Code, is
22-8 amended to read as follows:
22-9 Sec. 34.015. Alternate Manner of Sale. (a) Notwithstanding
22-10 any other provision of this subchapter, the governing body of a
22-11 municipality may provide for the manner in which land acquired by
22-12 the municipality following the foreclosure of a tax lien or by
22-13 seizure in favor of the municipality may be sold if the land is
22-14 sold to:
22-15 (1) a nonprofit organization that develops housing for
22-16 low income individuals and families as a primary activity to
22-17 promote community-based revitalization of the municipality; or
22-18 (2) a nonprofit corporation described by 26 U.S.C.
22-19 Section 501(c)(3) that:
22-20 (A) has been incorporated in this state for at
22-21 least one year;
22-22 (B) has a corporate purpose to develop
22-23 affordable housing that is stated in its articles of incorporation,
22-24 bylaws, or charter;
22-25 (C) has at least one-fourth of its board of
22-26 directors residing in the municipality; and
23-1 (D) engages primarily in the building, repair,
23-2 rental, or sale of housing for low income individuals or families.
23-3 SECTION 25. Subsections (a), (b) and (c), Section 34.02, Tax
23-4 Code, are amended to read as follows:
23-5 Sec. 34.02. Distribution of Proceeds. (a) The proceeds of
23-6 a tax sale pursuant to Section 33.94 or Section 34.01 shall be
23-7 applied [first to the payment of costs] in the following order.
23-8 Each category must be fully paid before any funds shall be
23-9 allocated to the following category: [The remainder shall be
23-10 distributed to all taxing units participating in the sale in
23-11 satisfaction of the taxes, penalties, and interest due each.]
23-12 (1) all costs of advertising the sale and all original
23-13 court costs due to the clerk of the court;
23-14 (2) all fees and commissions due to the officer
23-15 conducting the sale;
23-16 (3) taxes, penalties and interest due pursuant to the
23-17 judgment;
23-18 (4) amounts awarded to any taxing unit in the judgment
23-19 for a claim other than taxes, penalties or interest.
23-20 (b) If the proceeds are not sufficient to pay the total
23-21 amount due for any one of the four categories in Subsection (a) of
23-22 this section, [costs and taxes, penalties, and interest due all
23-23 participants in the sale] each participant in each category is
23-24 entitled to a share of the proceeds [after payment of costs] in an
23-25 amount equal to the proportion its entitlement [taxes, penalties,
23-26 and interest] bears to the total amount of that category. [taxes,
24-1 penalties, and interest due all participants in the sale.]
24-2 (c) If the sale is pursuant to foreclosure of a tax lien,
24-3 the officer conducting the sale shall pay any excess proceeds after
24-4 payment of all amounts [costs and of all taxes, penalties, and
24-5 interest] due all participants in the sale as set out in Subsection
24-6 (b) to the clerk of the court issuing the order of sale.
24-7 SECTION 26. Subsections (a) and (b), Section 34.03, Tax
24-8 Code, are amended to read as follows:
24-9 (a) The clerk of the court shall keep the excess proceeds
24-10 paid into court as provided by [Subsection (c) of] Section 34.02(c)
24-11 [34.02 of this code] for a period of two [seven] years after the
24-12 date of the sale unless otherwise ordered by the court.
24-13 (b) If no claimant [establishes entitlement to] files a
24-14 petition claiming the proceeds as provided in Section 34.04 within
24-15 two [seven] years from the date of the sale, the clerk shall
24-16 distribute the excess proceeds to each taxing unit participating in
24-17 the sale in an amount equal to the proportion its taxes, penalties,
24-18 and interests bear to the total amount of taxes, penalties, and
24-19 interest due all participants in the sale.
24-20 SECTION 27. Section 34.04, Tax Code, is amended to read as
24-21 follows:
24-22 Sec. 34.04. Claims for Excess Proceeds. (a) A person,
24-23 including any taxing unit, may file a petition in the court that
24-24 ordered the sale or seizure, setting forth a claim to the excess
24-25 proceeds within two [seven] years from the date of the sale of the
24-26 property. The petition need not be filed as a new lawsuit,
25-1 separate from the underlying action ordering seizure or foreclosing
25-2 the tax lien, but may be filed under the same cause number.
25-3 (b) A copy of the petition shall be served, pursuant to Rule
25-4 21a, Texas Rules of Civil Procedure, on [the county attorney or,
25-5 if there is no county attorney, the district attorney and on] all
25-6 parties to the underlying action [suit that ordered the sale, if
25-7 any,] not later than the 20th day before the date set for a hearing
25-8 on the petition.
25-9 (c) At the hearing [if] the court [finds that the claimant
25-10 is entitled to recover the excess proceeds, it] shall order that
25-11 the proceeds be paid in accordance with the following priorities to
25-12 those parties who may establish their claim: [to him. Interest or
25-13 costs may not be allowed.]
25-14 (1) to the taxing units for any taxes, penalties and
25-15 interest that have become due or delinquent on the property that
25-16 was the subject of the order of sale or seizure since the date of
25-17 the judgment;
25-18 (2) to any other lienholder, consensual or otherwise,
25-19 for the amount due under any lien, pursuant to the priority
25-20 established by the applicable law;
25-21 (3) to the taxing units for any unpaid taxes,
25-22 penalties and interest or other amounts adjudged due under the
25-23 judgment and unsatisfied by the tax sale;
25-24 (4) to the owner(s) of the property.
25-25 (d) Interest or costs may not be allowed. [A claim for the
25-26 excess proceeds may not be filed after the expiration of seven
26-1 years from the date the property is sold.]
26-2 SECTION 28. Subsection (a), Section 34.05, Tax Code, as
26-3 amended by Acts 1997, 75th Legislature, ch. 906, Section 9, is
26-4 repealed.
26-5 SECTION 29. Subsections (c) and (d), Section 34.05, Tax
26-6 Code, are amended to read as follows:
26-7 (c) The taxing unit purchasing the property by resolution of
26-8 its governing body may request the sheriff or constable to sell the
26-9 property at a public sale. If the purchasing taxing unit has not
26-10 sold the property within six months after the date on which the
26-11 owner's right of redemption terminates, any taxing unit that is
26-12 entitled to receive proceeds of the sale by resolution of its
26-13 governing body may request the sheriff or constable in writing to
26-14 sell the property at a public sale. On receipt of a request made
26-15 under this subsection, the sheriff or constable shall sell the
26-16 property as provided by Subsection (d) of this section, unless the
26-17 property is sold pursuant to Subsection (h) or (i) of this section
26-18 before the date set for the public sale.
26-19 (d) Except as provided by this subsection, all public sales
26-20 requested as provided by Subsection (c) of this section shall be
26-21 conducted in the manner prescribed by the Rules of Civil Procedure
26-22 for the sale of property under execution. The notice of the sale
26-23 must contain a description of the property to be sold, which must
26-24 be a legal description in the case of real property, the number and
26-25 style of the suit under which the property was sold at the tax
26-26 foreclosure sale, and the date of the tax foreclosure sale. If the
27-1 commissioners court of a county by order specifies the date or time
27-2 at which or location in the county where a public sale requested
27-3 under Subsection (c) shall be conducted, the sale shall be
27-4 conducted on the date and at the time and location specified in the
27-5 order. The acceptance of a bid by the officer conducting the sale
27-6 is conclusive and binding on the question of its sufficiency. An
27-7 action to set aside the sale on the grounds that the bid is
27-8 insufficient may not be sustained in court, except that a taxing
27-9 unit that participates in distribution of proceeds of the sale may
27-10 file an action within one year after the date of the sale to set
27-11 aside the sale on the grounds of fraud or collusion between the
27-12 officer making the sale and the purchaser. Upon conclusion of the
27-13 sale, the officer making the same shall prepare a deed to the
27-14 purchaser, and shall execute the deed and file it for recording
27-15 with the county clerk accompanied by instructions to the clerk to
27-16 return the deed to the purchaser following its recordation. The
27-17 taxing unit that requested the sale may elect to prepare a deed for
27-18 execution by the officer. The county clerk shall file and record
27-19 all such deeds without imposing any recording or other fees.
27-20 SECTION 30. Subsection (g), Section 34.05, Tax Code, as
27-21 amended by Acts 1997, 75th Legislature, ch. 712, Sec. 3 and by ch.
27-22 906, Sec. 9, is repealed.
27-23 SECTION 31. Subsection (h), Section 34.05, Tax Code, as
27-24 added by Acts 1997, 75th Legislature, ch. 712, Sec. 4, is amended
27-25 so as to redesignate it as Subsection (g), and to read as follows:
27-26 (g) [(h)]A taxing unit to which property is bid off [in] may
28-1 recover its costs of upkeep, maintenance, and environmental cleanup
28-2 from the resale proceeds without further court order.
28-3 SECTION 32. Subsection (b), Section 34.06, Tax Code, is
28-4 amended; Subsection (c), Section 34.06, Tax Code, is amended and,
28-5 as amended, redesignated as Subsection (d); and a new Subsection
28-6 (c), Section 34.06, Tax Code, is added, to read as follows:
28-7 (b) The proceeds of a resale shall be distributed as
28-8 follows:
28-9 (1) First, the purchasing taxing unit shall recover
28-10 its reasonable costs, as defined under Section 34.21 of this code,
28-11 incurred for the maintenance, preservation and safekeeping of the
28-12 property, its expenses in marketing the property for resale, and
28-13 its expenses set out under Subsection (d) of this section;
28-14 (2) Second, the purchasing taxing unit shall pay all
28-15 costs of the officer conducting the sale and of the clerk of the
28-16 court in connection with the suit and the sale;
28-17 (3) The balance, if any, after the payment of the
28-18 expenses set out in (1) and (2) of this Subsection shall be paid to
28-19 the participating taxing units in shares equal to the proportion
28-20 each taxing unit's taxes, penalties and interest bear to the total
28-21 amount of taxes, penalties and interest adjudged due all
28-22 participants in the sale.
28-23 (c) The previous owner(s) shall not be entitled to receive
28-24 any proceeds from the resale of the property.
28-25 (d) [(c) Notwithstanding Subsection (b), t] The purchasing
28-26 taxing unit is entitled to recover from the proceeds of a resale of
29-1 the property any cost incurred by the taxing unit in inspecting the
29-2 property to determine whether there is a release or threatened
29-3 release of solid waste from the property in violation of Chapter
29-4 361, Health and Safety Code, or a rule adopted or permit or order
29-5 issued by the Texas Natural Resource Conservation Commission under
29-6 that chapter, or a discharge or threatened discharge of waste or a
29-7 pollutant into or adjacent to water in this state from a point of
29-8 discharge on the property in violation of Chapter 26, Water Code,
29-9 or a rule adopted or permit or order issued by the commission under
29-10 that chapter, and in taking action to remove or remediate the
29-11 release or threatened release or discharge or threatened discharge
29-12 regardless of whether the taxing unit:
29-13 (1) was required by law to incur the cost; or
29-14 (2) obtained the consent of each taxing unit entitled
29-15 to receive proceeds of the sale under the judgment of foreclosure
29-16 to incur the cost.
29-17 SECTION 33. Subsection (b), Section 34.06, Tax Code, as
29-18 amended by Acts 1997, 75th Legislature, ch. 906, Sec. 10, is
29-19 repealed.
29-20 SECTION 34. Subsection (b), Section 34.06, Tax Code, as
29-21 amended by Acts 1997, 75th Legislature, ch. 914, Sec. 3, is
29-22 repealed.
29-23 SECTION 35. Subsections (a), (b), (c) and (d), Section
29-24 34.07, Tax Code, are amended to read as follows:
29-25 Sec. 34.07. Subrogation of Purchaser at Void Sale. (a) The
29-26 purchaser at a void or defective tax sale or tax resale is
30-1 subrogated to the rights of the taxing unit in whose behalf the
30-2 property was sold or resold to the same extent a purchaser at a
30-3 void or defective sale conducted in behalf of a judgment creditor
30-4 is subrogated to the rights of the judgment creditor.
30-5 (b) Except as provided by Subsection (c) of this section,
30-6 the purchaser at a void or defective tax sale or tax resale is
30-7 subrogated to the tax lien of the taxing unit in whose behalf the
30-8 property was sold or resold to the same extent a purchaser at a
30-9 void or defective mortgage or other lien foreclosure sale is
30-10 subrogated to the lien of the lienholder, and the purchaser is
30-11 entitled to a reforeclosure of the lien to which the purchaser [he]
30-12 is subrogated.
30-13 (c) If the purchaser at a void or defective tax sale or tax
30-14 resale paid less than the total amount of the judgment against the
30-15 property, the purchaser [he] is subrogated to the tax lien only in
30-16 the amount actually [he] paid at the sale or resale.
30-17 (d) In lieu of the purchaser pursuing the subrogation rights
30-18 provided by this section [to which he is subrogated], a purchaser
30-19 at a void tax sale may elect to file an action against the taxing
30-20 units to which the proceeds of the sale were distributed to recover
30-21 the amount paid at the sale. A purchaser who files a suit
30-22 authorized by this subsection waives all rights of subrogation [to
30-23 which he would] otherwise [be subrogated] provided by this section.
30-24 If the purchaser prevails in any such suit, the court shall
30-25 expressly provide in its final judgment that the tax sale is
30-26 vacated and set aside and that all liens are restored and
31-1 reinstated on the property effective as of the date on which the
31-2 liens originally attached.
31-3 SECTION 36. Subsections (a) and (b), Section 34.21, Tax
31-4 Code, as amended by Acts 1997, 75th Legislature, ch. 906, Sec. 11,
31-5 and by Acts 1997, 75th Legislature, ch 914, are amended to read as
31-6 follows:
31-7 (a) The owner of real property sold at a tax sale to a
31-8 purchaser other than a taxing unit and that was used as the
31-9 residence homestead of the owner or that was land designated for
31-10 agricultural use when the suit or application for warrant was filed
31-11 [judgment in the suit to collect the tax was rendered or when the
31-12 tax warrant was issued] may redeem the property within two years
31-13 after the date on which the purchaser's deed is filed for record by
31-14 paying the purchaser the amount the purchaser bid for the property,
31-15 the amount of the deed recording fee, and the amount paid by the
31-16 purchaser as taxes, penalties, interest, and costs on the property,
31-17 plus a redemption premium of 25 percent of the aggregate total if
31-18 the property is redeemed during the first year of the redemption
31-19 period or 50 percent of the aggregate total if the property is
31-20 redeemed during the second year of the redemption period.
31-21 (b) If property that was used as the owner's residence
31-22 homestead or was land designated for agricultural use when the suit
31-23 or application for warrant [to collect the tax] was filed is bid
31-24 off to a taxing unit under Section 34.01 (f) [(c)] and has not been
31-25 resold by the taxing unit, the owner having a right of redemption
31-26 may redeem the property within two years after the date on which
32-1 the deed of the taxing unit is filed for record by paying the
32-2 taxing unit the amount of the judgment against the property or the
32-3 market value of the property as specified in that judgment,
32-4 whichever is less, plus the amount of the fee for filing the taxing
32-5 unit's deed and the amount expended by the taxing unit as costs on
32-6 the property.
32-7 SECTION 37. Subsection (b), Section 34.21, Tax Code, as
32-8 amended by Acts 1997, 75th Legislature, ch. 914, Sec. 4, is
32-9 repealed.
32-10 SECTION 38. Subsections (c) and (d), Section 34.21, Tax
32-11 Code, are amended to hereafter read as follows:
32-12 (c) If real property that was used as the owner's residence
32-13 homestead or was land designated for agricultural use when the suit
32-14 or application for warrant [to collect the tax] was filed has been
32-15 resold by the taxing unit under Section 34.05, the owner of the
32-16 property having a right of redemption may redeem the property
32-17 within two years after the date on which the taxing unit files for
32-18 record the deed from the sheriff or constable by:
32-19 (1) paying the person who purchased the property from
32-20 the taxing unit the amount the purchaser paid for the property, the
32-21 amount of the fee for filing the purchaser's deed of record, the
32-22 amount paid by the purchaser as taxes, penalties, interest and
32-23 costs on the property, plus a redemption premium of 25 percent of
32-24 the aggregate total if the property is redeemed in the first year
32-25 of the redemption period or 50 percent of the aggregate total if
32-26 the property is redeemed in the second year of the redemption
33-1 period; and[.]
33-2 (2) If the amount paid under part (1) above is less
33-3 than the amount of the judgment under which the property was sold,
33-4 the owner shall pay to the taxing unit to which the property was
33-5 bid off under Section 34.01 the difference between the amount paid
33-6 under part (1) above and that judgment amount and shall provide to
33-7 the person from whom the property is redeemed a receipt showing
33-8 such payment. The taxing unit to which any such sums are paid
33-9 shall distribute those sums to each taxing unit which participated
33-10 in the judgment and sale in an amount equal to the proportion each
33-11 participant's judgment amount bears to the total amount of the
33-12 aggregate judgments of the participating taxing units.
33-13 (d) The owner of real property sold at a tax sale other than
33-14 property that was used as the residence homestead of the owner or
33-15 that was land designated for agricultural use when the suit or
33-16 application for warrant [to collect the tax] was filed may redeem
33-17 the property in the same manner and by paying the same amounts as
33-18 prescribed by Subsection (a), (b), or (c), as applicable, except
33-19 that:
33-20 (1) the owner's right of redemption may be exercised
33-21 no later than 180 days following the date on which the purchaser's
33-22 or taxing unit's deed is filed for record; and
33-23 (2) the redemption period premium payable by the owner
33-24 to a purchaser other than a taxing unit shall not exceed 25
33-25 percent.
33-26 SECTION 39. Subsection (e) of Section 34.21, Tax Code, as
34-1 amended by Acts 1997, 75th Legislature, ch. 1111, Sec. 6, is
34-2 amended so as to redesignate it as Subsection (f) and to read as
34-3 follows:
34-4 (f) [(e)] In this section: (1) "Land designated for
34-5 [A]agricultural use" [has the meaning assigned by Section 23.51.]
34-6 means land for which an application for appraisal under Subchapter
34-7 C or D, Chapter 23 of this code has been approved by final
34-8 determination.
34-9 (2) "Costs" includes the amount reasonably spent by
34-10 the purchaser for the maintenance, preservation, and safekeeping of
34-11 the property, including the cost of:
34-12 (A) property insurance;
34-13 (B) repairs or improvements required by a local
34-14 ordinance or building code or by a lease of the property in effect
34-15 on the date of the sale;
34-16 (C) discharging a lien imposed by a municipality
34-17 to secure expenses incurred by the municipality in remedying a
34-18 health or safety hazard on the property;
34-19 (D) dues or assessments for maintenance paid to
34-20 a property owners' association under a recorded restrictive
34-21 covenant to which the property is subject; and
34-22 (E) impact or standby fees imposed under the
34-23 Local Government Code or Water Code and paid to a political
34-24 subdivision.
34-25 (1) "Purchaser" includes a taxing unit to which
34-26 property is bid off under Section 34.01[(e)].
35-1 (2) "Residence homestead" has the meaning assigned by
35-2 Section 11.13.
35-3 SECTION 40. Subsections (g), (h) and (I), Section 34.21, Tax
35-4 Code, as amended by Acts 1997, 75th Legislature, ch. 906, are
35-5 repealed.
35-6 SECTION 41. Section 34.21, Tax Code, is amended by adding
35-7 Subsection (g) to read as follows:
35-8 (g) An owner who wishes to redeem a property under this
35-9 section may make a written request to the purchaser, or to the
35-10 taxing unit to which the property was bid off, for a written
35-11 itemization of all sums spent by that purchaser or taxing unit in
35-12 costs on the property. The owner's request shall be sent to the
35-13 purchaser at the address shown for the purchaser in the purchaser's
35-14 deed for the property in question or, if redeeming from the taxing
35-15 unit, to the business address of the taxing unit's tax
35-16 assessor-collector. The purchaser, or the tax assessor-collector,
35-17 as applicable, shall itemize all sums expended on the property in
35-18 costs and provide the same to the owner in writing within ten days
35-19 of receiving the written request for same. Delivery of the
35-20 itemization to the owner may be made by depositing the same in the
35-21 United States mail, postage prepaid, and addressed to the owner at
35-22 the address provided in the owner's written request. Following a
35-23 written request for itemization of costs, only those sums itemized
35-24 and provided to an owner under this Subsection shall be allowed as
35-25 costs for purposes of redemption.
35-26 SECTION 42. Subsection (f), Section 34.21, Tax Code, as
36-1 amended by Acts 1997, 75th Leg., ch. 906, is amended so as to
36-2 redesignate it as Subsection (h) and to read as follows:
36-3 (h) [(f)] The right of redemption does not grant or reserve
36-4 in the former owner of the real property the right to the use or
36-5 possession of the property, or to receive rents, income, or other
36-6 benefits from the property while the right of redemption exists.
36-7 Section 43. Subsection (b), Sec. 42.031, Tax Code is amended
36-8 to read as follows: (b) A taxing unit may not intervene in or in
36-9 any other manner be made a party, whether as defendant or
36-10 otherwise, to an appeal of an order of the appraisal review board
36-11 determining a taxpayer protest under Subchapter C, Chapter 41, if
36-12 the appeal was brought by the property owner.
36-13 Section 44. Section 304.301, Texas Finance Code, is amended
36-14 to read as follows:
36-15 Sec. 304.301. This chapter does not apply to a judgment that
36-16 earns interest at a rate set by Title 1 or Title 2, Tax Code.
36-17 SECTION 45. Part 4, Chapter VIII, Probate Code, is amended
36-18 by adding Section 313A to read as follows:
36-19 313A. AD VALOREM TAX CLAIMS. If a decedent's estate being
36-20 administered in a pending probate proceeding owns or claims an
36-21 interest in property against which there are delinquent ad valorem
36-22 tax claims held by a taxing unit, then notwithstanding any
36-23 provisions in this code to the contrary, the court with
36-24 jurisdiction over an action for collection of the taxes shall be as
36-25 follows:
36-26 (a) If the probate is pending in a county or foreign
37-1 jurisdiction other than the county in which the taxes were imposed,
37-2 exclusive jurisdiction and mandatory venue is with a court of
37-3 competent jurisdiction in the county in which the taxes were
37-4 imposed, as provided by Section 33.41(a), Tax Code.
37-5 (b) If the probate is pending in the same county in which
37-6 the taxes were imposed, and has been pending for a period of four
37-7 years or less, the tax claims may be formally presented to the
37-8 personal representative of the estate in the probate proceeding.
37-9 If so presented, the tax claims become subject to allowance or
37-10 rejection, in whole or in part, and to all other applicable
37-11 provisions under Part 4 and Part 5, Chapter VIII of this code
37-12 relating to claims and their enforcement in the probate proceeding.
37-13 The taxing unit is not required to make any presentment of its tax
37-14 claims in the probate proceeding, but it may not otherwise proceed
37-15 with enforcing collection by resorting to any court other than the
37-16 court of original probate jurisdiction until after a period of four
37-17 years has elapsed from the time the probate proceeding was
37-18 commenced.
37-19 (c) If the probate has been pending for a period of more
37-20 than four years in the same county in which the taxes were imposed,
37-21 and there has been neither a formal presentment of an authenticated
37-22 claim for delinquent taxes nor an order of the court exercising
37-23 probate jurisdiction which authorizes payment of the delinquent
37-24 taxes, jurisdiction over an action by the taxing unit to recover
37-25 the taxes is with the district court or the county court at law,
37-26 pursuant to Section 33.41(a), Tax Code, rather than with the court
38-1 of original probate jurisdiction. The taxing unit shall make the
38-2 personal representative of the decedent's estate a party to any
38-3 such action, and the taxing unit's remedy in its suit shall be
38-4 limited to foreclosure of the tax liens against the specific
38-5 property securing the liens.
38-6 SECTION 46. Subsection (c) of Section 317, Probate Code, is
38-7 amended to read as follows:
38-8 (c) Provisions Not Applicable to Certain Claims. The
38-9 foregoing provisions relative to the presentment of claims shall
38-10 not be so construed as to apply to:
38-11 (1) the claim of any heir, devisee, or legatee who
38-12 claims in such capacity, [or]
38-13 (2) [to] any claim that accrues against the estate
38-14 after the granting of letters for which the representative of the
38-15 estate has contracted[.],
38-16 (3) any claim for delinquent ad valorem taxes against
38-17 a decedent's estate being administered in probate in a county other
38-18 than the county in which the tax was imposed, or
38-19 (4) any claim for delinquent ad valorem taxes against
38-20 a decedent's estate being administered in the same county in which
38-21 the tax was imposed if the probate proceeding has been pending for
38-22 a period of more than four years.
38-23 SECTION 47. Section 801, Probate Code, is amended to read as
38-24 follows:
38-25 Section 8.01. PRESENTMENT OF CLAIMS A PREREQUISITE FOR
38-26 JUDGMENT. A judgment may not be rendered in favor of a claimant on
39-1 any claim for money that has not been legally presented to the
39-2 guardian of the estate of the ward and rejected by the guardian or
39-3 by the court, in whole or in part [.] , provided however that this
39-4 provision shall not be so construed as to apply to any claim for
39-5 delinquent ad valorem taxes against a ward's estate being
39-6 administered in probate in a county other than the county in which
39-7 the tax was imposed.
39-8 SECTION 48. Article 1396-2.07, Texas Civil Statutes, is
39-9 amended to add Subpart D to read as follows:
39-10 D. In the event that a corporation loses its privileges, by
39-11 forfeiture pursuant to Texas Tax Code Section 171.251 or by
39-12 involuntary dissolution pursuant to Article 7.01, Texas Business
39-13 Corporation Act, service of any process, notice, or demand required
39-14 or permitted by law upon the corporation may be had by delivery of
39-15 the process, notice, or demand, to the president, vice president,
39-16 or any officer or director of the corporation as listed in the most
39-17 recent records of the Secretary of State. If the officers or
39-18 directors of the corporation are unknown or cannot be located,
39-19 service may be obtained upon the corporation in the same manner as
39-20 service on unknown stockholders is allowed by law. Service of
39-21 process pursuant to this section shall be sufficient to support a
39-22 judgment, in personam or in rem, against such corporation and any
39-23 property to which the corporation holds title, notwithstanding any
39-24 disability or reinstatement of the corporation.
39-25 SECTION 49. Article 2.11, Texas Business Corporation Act, is
39-26 amended to add Subpart D to read as follows:
40-1 D. In the event that a corporation loses its privileges, by
40-2 forfeiture pursuant to Texas Tax Code Section 171.251, or by
40-3 involuntary dissolution pursuant to Article 7.01, Texas Business
40-4 Corporation Act, service of any process, notice, or demand required
40-5 or permitted by law upon the corporation may be had by delivery of
40-6 the process, notice, or demand, to the president, vice president,
40-7 or any officer or director of the corporation as listed in the most
40-8 recent records of the Secretary of State. If the officers or
40-9 directors of the corporation are unknown or cannot be located,
40-10 service may be obtained upon the corporation in the same manner as
40-11 service on unknown stockholders is allowed by law. Service of
40-12 process pursuant to this section shall be sufficient to support a
40-13 judgment, in personam or in rem, against such corporation and any
40-14 property to which the corporation holds title, notwithstanding any
40-15 disability or reinstatement of the corporation.
40-16 SECTION 50. Article 8.10, Texas Business Corporation Act, is
40-17 amended to add Subpart E to read as follows:
40-18 E. In the event that a corporation loses its privileges, by
40-19 forfeiture pursuant to Texas Tax Code Section 171.251 or by
40-20 involuntary dissolution pursuant to Article 7.01, Texas Business
40-21 Corporation Act, service of any process, notice, or demand required
40-22 or permitted by law upon the corporation may be had by delivery of
40-23 the process, notice, or demand, to the president, vice president,
40-24 or any officer or director of the corporation as listed in the most
40-25 recent records of the Secretary of State. If the officers or
40-26 directors of the corporation are unknown or cannot be located,
41-1 service may be obtained upon the corporation in the same manner as
41-2 service on unknown stockholders is allowed by law. Service of
41-3 process pursuant to this section shall be sufficient to support a
41-4 judgment, in personam or in rem, against such corporation and any
41-5 property to which the corporation holds title, notwithstanding any
41-6 disability or reinstatement of the corporation.
41-7 SECTION 51. Subsections (j), (k) and (l), Section 49.231,
41-8 Water Code are amended, and new Subsections (o) and (p) are added,
41-9 to read as follows:
41-10 (j) The board may:
41-11 (1) charge interest[,] at the rate of one percent a
41-12 month and may impose a penalty [,] on a standby fee not paid in a
41-13 timely manner in accordance with the resolution or order imposing
41-14 the standby fee; and
41-15 (2) refuse to provide potable water, sanitary sewer,
41-16 or drainage service to the property for which the fee was assessed
41-17 until all delinquent standby fees on the property , [and] plus
41-18 interest, and penalty on those fees are fully paid.
41-19 (k) A standby fee imposed under this section is a personal
41-20 obligation of the person owning the undeveloped property on January
41-21 1 of the year for which the fee is assessed. A person is not
41-22 relieved of the obligation on transfer of title to the property.
41-23 On January 1 of each year, a lien attaches to undeveloped property
41-24 to secure payment of any standby fee imposed under this section,
41-25 [and] plus interest, and penalty, if any, on the fee.
41-26 (l) If a standby fee imposed under this section is not paid
42-1 in a timely manner, a district may file suit to foreclose the lien
42-2 securing payment of the fee, [and] interest, and penalty or to
42-3 enforce the personal obligation of the fee, [and] interest, and
42-4 penalty, or both. The district may recover, in addition to the
42-5 fee, [and] interest, and penalty, reasonable costs, including
42-6 attorney's fees, incurred by the district in enforcing the lien or
42-7 obligation not to exceed 20 percent of the delinquent fee, [and]
42-8 interest, and penalty. A suit authorized by this subsection must
42-9 be filed not later than the fourth anniversary of the date the fee
42-10 became due. A fee delinquent for more than four years, [and]
42-11 interest, and penalty on the fee are considered paid unless a suit
42-12 is filed before the expiration of the four-year period.
42-13 (o) The penalty provided by Subsection (j) of this section
42-14 is in the amount of six percent of the amount of the fee for the
42-15 first calendar month it is delinquent plus one percent for each of
42-16 the following four months or portion of any of such months the fee
42-17 remains unpaid. However, a fee remaining unpaid on the first day
42-18 of the sixth month following the month in which it was due incurs a
42-19 total maximum penalty of twelve percent of the amount of the fee.
42-20 (p) The board may further provide, in accordance with the
42-21 resolution or order imposing the standby fee, that a fee not paid
42-22 in a timely manner is further subject to an additional penalty to
42-23 defray costs of collection if the district has contracted with an
42-24 attorney for the collection, whether by suit or otherwise, of past
42-25 due fees. The amount of the additional penalty may not exceed
42-26 fifteen percent of the amount of fees, interest and penalty due,
43-1 and the penalty may only be imposed if notice of the penalty is
43-2 given by the district or by its attorney to the property owner at
43-3 least 30 and not more than 60 days prior to the date it is
43-4 incurred. With regards to fees imposed for the year 2000 and
43-5 subsequent years, the penalty is incurred on the first day of the
43-6 sixth month following the month in which the fee was due. With
43-7 regard to fees imposed for the years 1999 and prior thereto, the
43-8 penalty is incurred on the date set by the board. A district may
43-9 not recover both the additional penalty provided by this Subsection
43-10 and the attorney fees provided by Subsection (1) of the section.
43-11 SECTION 52. Sections 1, 2, 3, 4, 5, 6, 8, 9, 11, 13, and 51
43-12 of this Act take effect January 1, 2000.
43-13 SECTION 53. Sections 7, 10, 12, 14, 15, 16, 17, 18, 19, 20,
43-14 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37,
43-15 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49 and 50 of this Act
43-16 take effect September 1, 1999.
43-17 SECTION 54. The change in law made by Section 7 of this Act
43-18 applies only to a refund the liability for which arises on or after
43-19 September 1, 1999. A refund for which the liability arose before
43-20 September 1, 1999 is governed by the law in effect when the
43-21 liability arose, and the former law is continued in effect for that
43-22 purpose.
43-23 SECTION 55. The change in law made by Section 9 of this Act
43-24 applies to all liens for which notice may be filed with the
43-25 department on or after January 1, 2000. Liens for which notices
43-26 could be filed before January 1, 2000 are governed by the law in
44-1 effect as of the last date on which the notice of lien could be
44-2 filed, and the former law is continued in effect for that purpose.
44-3 SECTION 56. The change in law made by Section 13 of this Act
44-4 applies to the notice required to be given by Section 33.04(b), Tax
44-5 Code, in the year 2000 and thereafter. Penalties and interest on a
44-6 delinquent tax are not canceled under Section 33.04 for failure to
44-7 deliver a notice required by Section 33.04(b), as it existed before
44-8 the effective date of this Act, if the notice is not required by
44-9 Section 33.04(b), as amended by this Act.
44-10 SECTION 57. The changes in law made by Sections 15 and 18 of
44-11 this Act apply to all tax suits, regardless of when commenced, in
44-12 which judgment is signed on or after September 1, 1999.
44-13 SECTION 58. The changes in law made by Sections 22, 23 and
44-14 25 of this Act apply to all tax sales conducted on or after
44-15 September 1, 1999 and based on judgments signed before, on or after
44-16 September 1, 1999. The date on which a tax sale was conducted is
44-17 deemed to be the first Tuesday of the month in which the public
44-18 auction occurred.
44-19 SECTION 59. The change in law made by Sections 26 and 27 of
44-20 this Act applies to the disposition of excess proceeds of a
44-21 property tax foreclosure or summary sale paid into court regardless
44-22 of the date on which the sale occurred or the date on which the
44-23 proceeds were paid into the court. If on the effective date of
44-24 this Act, the clerk of a court is retaining excess proceeds that
44-25 have been retained for longer than the period provided by Section
44-26 34.03(a), Tax Code, as amended by this Act, the clerk shall
45-1 distribute those proceeds as provided by Section 34.03(b), Tax
45-2 Code, as amended by this Act, as soon as practicable after the
45-3 effective date of this Act.
45-4 SECTION 60. The change in law made by Sections 29 and 32 of
45-5 this Act applies to all resales conducted on or after September 1,
45-6 1999 and based on judgments signed before, on or after September 1,
45-7 1999. The date on which a resale was conducted is deemed to be the
45-8 date on which the grantor's acknowledgment was taken or, if
45-9 multiple grantors, the latest date of acknowledgment as between the
45-10 various grantors.
45-11 SECTION 61. The change in law made by Section 35 of this Act
45-12 applies to all tax resales based upon original tax sales conducted
45-13 before, on or after September 1, 1999.
45-14 SECTION 62. The changes in law made by Sections 36, 38, 39
45-15 and 41 of this Act apply to redemption of real property sold at a
45-16 tax sale conducted on or after September 1, 1999 and based on
45-17 judgments entered before, on or after September 1, 1999. Redemption
45-18 of real property sold at a tax sale conducted before September 1,
45-19 1999 is governed by the law in effect when the sale occurred, and
45-20 the former law is continued in effect for that purpose. The date
45-21 on which a tax sale was conducted is deemed as the first Tuesday of
45-22 the month in which the public auction occurred.
45-23 SECTION 63. The changes in law made by Sections 45, 46 and 47
45-24 of this Act apply to the estates of all decedents, regardless of
45-25 the date of death, and apply to the estates of all wards,
45-26 regardless of the date the application for appointment of a
46-1 guardian was filed, and to all causes of action pending on its
46-2 effective date as well as future actions.
46-3 SECTION 64. The changes in law made by Sections 48, 49 and 50
46-4 apply to all actions pending on September 1, 1999 and to all
46-5 actions instituted thereafter.