77R5150 JD-F
By Heflin H.B. No. 490
Substitute the following for H.B. No. 490:
By Heflin C.S.H.B. No. 490
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and collection of ad valorem taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 25.25(b) and (c), Tax Code, are amended
1-5 to read as follows:
1-6 (b) The chief appraiser may change the appraisal roll at any
1-7 time to correct a name or address, a determination of ownership, a
1-8 description of property, multiple appraisals of a property, or a
1-9 clerical error or other inaccuracy as prescribed by board rule that
1-10 does not increase the amount of tax liability. Before the 10th day
1-11 after the end of each calendar quarter, the chief appraiser shall
1-12 submit to the appraisal review board and to the board of directors
1-13 of the appraisal district a written report of each change made
1-14 under this subsection that decreases the tax liability of the owner
1-15 of the property. The report must include:
1-16 (1) a description of each property; and
1-17 (2) the name of the owner of that property.
1-18 (c) At any time [before the end of five years after January
1-19 1 of a tax year], the appraisal review board, on motion of the
1-20 chief appraiser or of a property owner, may direct by written order
1-21 changes in the appraisal roll to correct multiple appraisals of a
1-22 property in a tax year. At any time before the end of five years
1-23 after January 1 of the tax year for which the change is sought, the
1-24 appraisal review board, on motion of the chief appraiser or of a
2-1 property owner, may direct by written order changes in the
2-2 appraisal roll to correct:
2-3 (1) clerical errors that affect a property owner's
2-4 liability for a tax [imposed in that tax year]; or
2-5 (2) [multiple appraisals of a property in that tax
2-6 year; or]
2-7 [(3)] the inclusion of property that does not exist in
2-8 the form or at the location described in the appraisal roll.
2-9 SECTION 2. Sections 33.06(a), (d), and (e), Tax Code, are
2-10 amended to read as follows:
2-11 (a) An individual is entitled to defer or abate a suit to
2-12 collect a delinquent tax if the individual [he] is 65 years of age
2-13 or older and the tax was imposed against property that the
2-14 individual [he] owns and occupies as a residence homestead [the
2-15 property on which the tax subject to the suit is delinquent].
2-16 (d) A tax lien remains on the property and interest
2-17 continues to accrue during the period collection of taxes is
2-18 deferred or abated under [as provided by] this section. The annual
2-19 interest rate during the deferral or abatement period is eight
2-20 percent [a year] instead of the rate provided by Section 33.01 [of
2-21 this code]. Interest and penalties that accrued or that were
2-22 incurred or imposed under Section 33.01 or 33.07 before the date
2-23 the individual files the deferral affidavit under Subsection (b) or
2-24 the date the judgment abating the suit is entered, as applicable,
2-25 are preserved. A penalty under Section 33.01 is [may] not incurred
2-26 [be imposed] during a deferral or abatement period. The additional
2-27 penalty under [provided by] Section 33.07 [of this code] may be
3-1 imposed during a deferral or abatement period. The additional
3-2 penalty may be collected only if the taxes for which collection is
3-3 deferred or abated remain delinquent on or after the 91st day after
3-4 the date the deferral or abatement period expires. A plea of
3-5 limitation, laches, or want of prosecution does not apply against
3-6 the taxing unit because of deferral or abatement of collection as
3-7 provided by this section.
3-8 (e) Each year the chief appraiser for each appraisal
3-9 district shall publicize in a manner reasonably designed to notify
3-10 all residents of the district or county the provisions of this
3-11 section and, specifically, the method by which eligible persons may
3-12 obtain a deferral or abatement.
3-13 SECTION 3. Section 33.065(g), Tax Code, is amended to read as
3-14 follows:
3-15 (g) A tax lien remains on the property and interest
3-16 continues to accrue during the period collection of delinquent
3-17 taxes is deferred or abated under [as provided by] this section.
3-18 The annual interest rate during the deferral or abatement period is
3-19 eight percent instead of the rate provided by Section 33.01.
3-20 Interest and penalties that accrued or that were incurred or
3-21 imposed under Section 33.01 or 33.07 before the date the individual
3-22 files the deferral affidavit under Subsection (c) or the date the
3-23 judgment abating the suit is entered, as applicable, are preserved.
3-24 A penalty is [may] not incurred [be imposed] on the delinquent
3-25 taxes for which collection is deferred or abated during a deferral
3-26 or abatement period. The additional penalty under [provided by]
3-27 Section 33.07 may be imposed during a deferral or abatement period.
4-1 The additional penalty may be collected only if the delinquent
4-2 taxes for which collection is deferred remain delinquent on or
4-3 after the 91st day after the date the deferral or abatement period
4-4 expires. A plea of limitation, laches, or want of prosecution does
4-5 not apply against the taxing unit because of deferral or abatement
4-6 of collection as provided by this section.
4-7 SECTION 4. Section 33.08(b), Tax Code, is amended to read as
4-8 follows:
4-9 (b) The governing body of the taxing unit or appraisal
4-10 district, in the manner required by law for official action, may
4-11 provide that taxes that become delinquent on or after June 1 under
4-12 Section 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur an
4-13 additional penalty to defray costs of collection. The amount of
4-14 the penalty may not exceed 15 percent of the amount of taxes,
4-15 penalty, and interest due.
4-16 SECTION 5. Section 33.21, Tax Code, is amended by adding
4-17 Subsection (d) to read as follows:
4-18 (d) In this subchapter, "personal property" means:
4-19 (1) tangible personal property;
4-20 (2) cash on hand;
4-21 (3) notes or accounts receivable, including rents and
4-22 royalties;
4-23 (4) demand or time deposits; and
4-24 (5) certificates of deposit.
4-25 SECTION 6. Section 33.23, Tax Code, is amended by amending
4-26 Subsection (c) and adding Subsections (d) and (e) to read as
4-27 follows:
5-1 (c) After a tax warrant is issued, the collector or peace
5-2 officer shall take possession of the property pending its sale. The
5-3 person against whom a tax warrant is issued or another person
5-4 having possession of property of the person against whom a tax
5-5 warrant is issued shall surrender the property on demand. Pending
5-6 the sale of the property, the collector or peace officer may secure
5-7 the property at the location where it is seized or may move the
5-8 property to another location.
5-9 (d) A person who possesses personal property owned by the
5-10 person against whom a tax warrant is issued and who surrenders the
5-11 property on demand is not liable to any person for the surrender.
5-12 At the time of surrender, the collector shall provide the person
5-13 surrendering the property a sworn receipt describing the property
5-14 surrendered.
5-15 (e) Subsection (d) does not create an obligation on the part
5-16 of a person who surrenders property owned by the person against
5-17 whom a tax warrant is issued that exceeds or materially differs
5-18 from that person's obligation to the person against whom the tax
5-19 warrant is issued.
5-20 SECTION 7. Section 33.25, Tax Code, is amended by amending
5-21 Subsection (a) and adding Subsection (c) to read as follows:
5-22 (a) Except as provided by Subsection (c), after [After] a
5-23 seizure of personal property, the collector shall make a reasonable
5-24 inquiry to determine the identity and ascertain the address of any
5-25 person having an interest in the property other than the person
5-26 against whom the tax warrant is issued. The collector [He] shall
5-27 deliver as soon as possible a written notice stating the time and
6-1 place of the sale and briefly describing the property seized to the
6-2 person against whom the warrant is issued and to any other person
6-3 the collector determines [he discovers] has an interest in the
6-4 property and whose address the collector [he] ascertains. The
6-5 notice shall be delivered in a manner authorized by Rule 21a, Texas
6-6 Rules of Civil Procedure.
6-7 (c) After a seizure of personal property defined by Sections
6-8 33.21(d)(2)-(5), the collector shall apply the seized property
6-9 toward the payment of the taxes, penalties, and interest included
6-10 in the application for warrant and all costs of the seizure.
6-11 SECTION 8. Section 33.42(c), Tax Code, is amended to read as
6-12 follows:
6-13 (c) If a tax required by this section to be included in a
6-14 suit is omitted from the judgment in the suit, the taxing unit may
6-15 not enforce collection of the tax at a later time except as
6-16 provided by Section 34.04(c)(2).
6-17 SECTION 9. Section 33.43(a), Tax Code, is amended to read as
6-18 follows:
6-19 (a) A petition initiating a suit to collect a delinquent
6-20 property tax is sufficient if it alleges that:
6-21 (1) the taxing unit is legally constituted and
6-22 authorized to impose and collect ad valorem taxes on property;
6-23 (2) tax in a stated amount was legally imposed on each
6-24 separately described property for each year specified and on each
6-25 person named if known who owned the property on January 1 of the
6-26 year for which the tax was imposed;
6-27 (3) the tax was imposed in the county in which the
7-1 suit is filed;
7-2 (4) the tax is delinquent;
7-3 (5) penalties, interest, and costs authorized by law
7-4 in a stated amount for each separately assessed property are due;
7-5 (6) the taxing unit is entitled to recover each
7-6 penalty that is incurred and all interest that accrues on
7-7 delinquent taxes imposed on the property from the date of the
7-8 judgment to the date of the sale under Section 34.01 or under
7-9 Section 253.010, Local Government Code [34.015], as applicable, if
7-10 the suit seeks to foreclose a tax lien;
7-11 (7) the person sued owned the property on January 1 of
7-12 the year for which the tax was imposed if the suit seeks to enforce
7-13 personal liability;
7-14 (8) the person sued owns the property when the suit is
7-15 filed if the suit seeks to foreclose a tax lien;
7-16 (9) the taxing unit asserts a lien on each separately
7-17 described property to secure the payment of all taxes, penalties,
7-18 interest, and costs due if the suit seeks to foreclose a tax lien;
7-19 (10) all things required by law to be done have been
7-20 done properly by the appropriate officials; and
7-21 (11) the attorney signing the petition is legally
7-22 authorized to prosecute the suit on behalf of the taxing unit.
7-23 SECTION 10. Section 33.48, Tax Code, is amended to read as
7-24 follows:
7-25 Sec. 33.48. RECOVERY OF COSTS AND EXPENSES. (a) In addition
7-26 to other costs authorized by law, a taxing unit is entitled to
7-27 recover the following costs and expenses in a suit to collect a
8-1 delinquent tax:
8-2 (1) all usual court costs, including the cost of
8-3 serving process;
8-4 (2) costs of filing for record a notice of lis pendens
8-5 against property;
8-6 (3) expenses of foreclosure sale;
8-7 (4) reasonable expenses that are incurred by the
8-8 taxing unit in determining the name, identity, and location of
8-9 necessary parties and in procuring necessary legal descriptions of
8-10 the property on which a delinquent tax is due; [and]
8-11 (5) attorney's fees in the amount of 15 percent of the
8-12 total amount of taxes, penalties, and interest due the unit; and
8-13 (6) reasonable attorney ad litem fees approved by the
8-14 court that are incurred in a suit in which the court orders the
8-15 appointment of an attorney to represent the interests of a
8-16 defendant served with process by means of citation by publication
8-17 or posting.
8-18 (b) An expense described [Each item specified] by Subsection
8-19 (a) [of this section] is a charge against the property subject to
8-20 foreclosure in the suit and shall be collected out of the proceeds
8-21 of the sale of the property or, if the suit is for personal
8-22 judgment, charged against the defendant.
8-23 (c) An expense described by Subsection (a)(4) is a charge
8-24 against the property and secured by lien, regardless of whether a
8-25 suit is pending, if taxes on that property were delinquent at the
8-26 time the item of expense was incurred. In an action brought by a
8-27 taxing unit for the sole purpose of enforcing its lien for expenses
9-1 incurred under Subsection (a)(4), the defendant may allege as an
9-2 affirmative defense that the amount of those expenses is
9-3 unreasonable.
9-4 (d) Fees collected for attorneys and other officials are
9-5 fees of office, except that fees for contract attorneys
9-6 representing a taxing unit that is joined or intervenes shall be
9-7 applied toward the compensation due the attorney under the
9-8 contract.
9-9 SECTION 11. Section 33.49(a), Tax Code, is amended to read as
9-10 follows:
9-11 (a) Except as provided by Subsection (b) [of this section],
9-12 a taxing unit is not liable in a suit to collect taxes for court
9-13 costs, including any fees for service of process, an attorney ad
9-14 litem, arbitration, or mediation, and may not be required to post
9-15 security for costs.
9-16 SECTION 12. Section 33.52(d), Tax Code, is amended to read as
9-17 follows:
9-18 (d) Except as provided by Section 34.01(l), a [A] taxing
9-19 unit's claim for taxes that become delinquent after the date of the
9-20 judgment is not affected by the entry of the judgment or a tax sale
9-21 conducted under that judgment, and those[. Those] taxes may be
9-22 collected by any remedy provided by this title.
9-23 SECTION 13. Sections 33.56(a), (c), (d), and (e), Tax Code,
9-24 are amended to read as follows:
9-25 (a) If, in a suit to collect a delinquent tax, a court
9-26 renders a judgment for foreclosure of a tax lien on behalf of a
9-27 taxing unit, any [the] taxing unit that was a party to the judgment
10-1 may file a petition to vacate the judgment on one or more of the
10-2 following grounds [for]:
10-3 (1) failure to join a person needed for just
10-4 adjudication under the Texas Rules of Civil Procedure, including a
10-5 taxing unit required to be joined under Section 33.44(a);
10-6 (2) failure to serve a person needed for just
10-7 adjudication under the Texas Rules of Civil Procedure, including a
10-8 taxing unit required to be joined under Section 33.44(a); [or]
10-9 (3) failure of the judgment to adequately describe the
10-10 property that is the subject of the suit; or
10-11 (4) that the property described in the judgment was
10-12 subject to multiple appraisals for the tax years included in the
10-13 judgment.
10-14 (c) The taxing unit may not file a petition if a tax sale of
10-15 the property has occurred unless:
10-16 (1) the tax sale has been vacated by an order of a
10-17 court; [or]
10-18 (2) the property was bid off [sold] to a [the] taxing
10-19 unit under Section 34.01(j) [34.01(c)] and has not been resold; or
10-20 (3) the tax sale or resale purchaser, or the
10-21 purchaser's heirs, successors, or assigns, consents to the
10-22 petition.
10-23 (d) Consent of the purchaser to a petition may be shown by:
10-24 (1) a written memorandum signed by the purchaser and
10-25 filed with the court;
10-26 (2) the purchaser's joinder in the taxing unit's
10-27 petition;
11-1 (3) a statement of the purchaser made in open court on
11-2 the record in a hearing on the petition; or
11-3 (4) the purchaser's signature of approval to an agreed
11-4 order to grant the petition.
11-5 (e) A copy of the petition must be served in a manner
11-6 authorized by Rule 21a, Texas Rules of Civil Procedure, on each
11-7 party to the delinquent tax suit.
11-8 (f) [(e)] If the court grants the petition, the court shall
11-9 enter an order providing that:
11-10 (1) the judgment, any tax sale based on that judgment,
11-11 and any subsequent resale are [is] vacated;
11-12 (2) any applicable tax deed or applicable resale deed
11-13 is canceled;
11-14 (3) [and] the delinquent tax suit is revived; and
11-15 (4) except in a case in which judgement is vacated
11-16 under Subsection (a)(4), the taxes, penalties, interest, and
11-17 attorney's fees and costs, and the liens that secure each of those
11-18 items, are reinstated.
11-19 SECTION 14. Sections 34.01(b), (l), (m), (o), (p), and (r),
11-20 Tax Code, are amended to read as follows:
11-21 (b) On receipt of an order of sale of real property, the
11-22 officer charged with selling the property shall endorse on the
11-23 order the date and exact time when the officer received the order.
11-24 The endorsement is a levy on the property without necessity for
11-25 going upon the ground. The officer shall calculate the total
11-26 amount due under the judgment, including all taxes, penalties, and
11-27 interest, plus any other amount awarded by the judgment, court
12-1 costs, and the costs of the sale. The costs of a sale include[,
12-2 including] the costs of advertising, an amount not to exceed $40
12-3 incurred in any physical inspection of the property, and deed
12-4 recording fees anticipated to be paid in connection with the sale
12-5 of the property. To assist the officer in making the calculation,
12-6 the collector of any taxing unit that is party to the judgment may
12-7 provide the officer with a certified tax statement showing the
12-8 amount of the taxes included in the judgment that remain due that
12-9 taxing unit and all penalties, interest, and attorney's fees
12-10 provided by the judgment as of the date of the proposed sale. If a
12-11 certified tax statement is provided to the officer, the officer
12-12 shall rely on the amount included in the statement and is not
12-13 responsible or liable for the accuracy of the applicable portion of
12-14 the calculation. A certified tax statement is not required to be
12-15 sworn to and is sufficient if the tax collector or the collector's
12-16 deputy signs the statement.
12-17 (l) All of a taxing unit's existing liens of any character
12-18 that are not included and foreclosed in a tax foreclosure judgment
12-19 or that attach to the foreclosed property after the date the
12-20 judgment is signed are extinguished as to that property, and the
12-21 taxes or other claims secured by those liens are canceled and
12-22 barred, if:
12-23 (1) the taxing unit established its delinquent tax
12-24 liens as a participant in the judgment; and
12-25 (2) the property is bid off to a taxing unit under
12-26 Subsection (j) or (p). [Notwithstanding that property is bid off to
12-27 a taxing unit under this section, a taxing unit that established a
13-1 tax lien in the suit may continue to enforce collection of any
13-2 amount for which a former owner of the property is liable to the
13-3 taxing unit, including any post-judgment taxes, penalties, and
13-4 interest, in any other manner provided by law.]
13-5 (m) The officer making the sale shall prepare a deed to the
13-6 purchaser of real property at the sale, to any other person whom
13-7 the purchaser may specify, or to the taxing unit to which the
13-8 property was bid off. The taxing unit that requested the order of
13-9 sale may elect to prepare a deed for execution by the officer. If
13-10 the taxing unit prepares the deed, the officer shall execute that
13-11 deed. As soon as practicable after a deed is executed by the
13-12 officer, the [The] officer shall [execute the deed and] either file
13-13 the deed for recording with the county clerk or deliver the
13-14 executed deed to the taxing unit that requested the order of sale,
13-15 which shall file the deed for recording with the county clerk. The
13-16 county clerk shall file and record each deed filed under this
13-17 subsection and after recording shall return the deed to the
13-18 grantee.
13-19 (o) If [Notwithstanding Subsection (j), if] a [sufficient]
13-20 bid sufficient to pay the amount specified by Subsection (p) is not
13-21 received, the officer making the sale may bid off property seized
13-22 under Subchapter E, Chapter 33, to a person described by Section
13-23 11.181 or 11.20 for less than that [the tax warrant] amount or the
13-24 market value of the property. Consent to the sale by the taxing
13-25 units entitled to receive proceeds of the sale is not required. The
13-26 acceptance of a bid by the officer under this subsection is
13-27 conclusive and binding on the question of its sufficiency. An
14-1 action to set aside the sale on the grounds that a bid is
14-2 insufficient may not be sustained, except that a taxing unit that
14-3 participates in distribution of proceeds of the sale may file an
14-4 action before the first anniversary of the date of the sale to set
14-5 aside the sale on the grounds of fraud or collusion between the
14-6 officer making the sale and the purchaser.
14-7 (p) Except as provided by Subsection (o), property seized
14-8 under Subchapter E, Chapter 33, may not be sold for an amount that
14-9 is less than the lesser of the market value of the property as
14-10 specified in the warrant or the total amount of taxes, penalties,
14-11 interest, costs, and other claims for which the warrant was issued
14-12 [due on the property]. If a sufficient bid is not received by the
14-13 officer making the sale, the officer shall bid off the property to
14-14 a taxing unit in the manner specified by Subsection (j) and subject
14-15 to the other provisions of that subsection. A taxing unit that
14-16 takes title to property [seized] under this subsection [that
14-17 subchapter] takes title [to the property] for the use and benefit
14-18 of that taxing unit and all other taxing units that established tax
14-19 liens in the suit or that, on the date of the seizure, were owed
14-20 delinquent taxes on the property.
14-21 (r) A sale of real property under this section must take
14-22 place at the county courthouse in the county in which the land is
14-23 located. The commissioners court of the county may designate the
14-24 area in the county courthouse where sales under this section must
14-25 take place and shall record any designated area in the real
14-26 property records of the county. If the commissioners court
14-27 designates an area in the courthouse for sales, a sale must occur
15-1 in that area. If the commissioners court does not designate an
15-2 area in the courthouse for sales, a [The] sale must [shall] occur
15-3 in the same area [location] in the courthouse that is designated by
15-4 the commissioners court [of the county] for the sale of real
15-5 property under Section 51.002, Property Code.
15-6 SECTION 15. Section 34.04(c), Tax Code, is amended to read as
15-7 follows:
15-8 (c) At the hearing the court shall order that the proceeds
15-9 be paid according to the following priorities to each party that
15-10 establishes its claim to the proceeds:
15-11 (1) to the tax sale purchaser if the tax sale has been
15-12 adjudged to be void and the purchaser has prevailed in an action
15-13 against the taxing units under Section 34.07(d) by final judgment;
15-14 (2) to a taxing unit for any taxes, penalties, or
15-15 interest that have become due or delinquent on the subject property
15-16 subsequent to the date of the judgment or that were omitted from
15-17 the judgment by accident or mistake;
15-18 (3) [(2)] to any other lienholder, consensual or
15-19 otherwise, for the amount due under a lien, in accordance with the
15-20 priorities established by applicable law;
15-21 (4) [(3)] to a taxing unit for any unpaid taxes,
15-22 penalties, interest, or other amounts adjudged due under the
15-23 judgment that were not satisfied from the proceeds from the tax
15-24 sale; and
15-25 (5) [(4)] to each owner of the property.
15-26 SECTION 16. Sections 34.05(d) and (e), Tax Code, are amended
15-27 to read as follows:
16-1 (d) Except as provided by this subsection, all public sales
16-2 requested as provided by Subsection (c) shall be conducted in the
16-3 manner prescribed by the Texas Rules of Civil Procedure for the
16-4 sale of property under execution. The notice of the sale must
16-5 contain a description of the property to be sold, [which must be a
16-6 legal description in the case of real property,] the number and
16-7 style of the suit under which the property was sold at the tax
16-8 foreclosure sale, and the date of the tax foreclosure sale. The
16-9 description of the property in the notice is sufficient if it is
16-10 stated in the manner provided by Section 34.01(f). If the
16-11 commissioners court of a county by order specifies the date or time
16-12 at which or location in the county where a public sale requested
16-13 under Subsection (c) shall be conducted, the sale shall be
16-14 conducted on the date and at the time and location specified in the
16-15 order. The acceptance of a bid by the officer conducting the sale
16-16 is conclusive and binding on the question of its sufficiency. An
16-17 action to set aside the sale on the grounds that the bid is
16-18 insufficient may not be sustained in court, except that a taxing
16-19 unit that participates in distribution of proceeds of the sale may
16-20 file an action before the first anniversary of the date of the sale
16-21 to set aside the sale on the grounds of fraud or collusion between
16-22 the officer making the sale and the purchaser. On conclusion of
16-23 the sale, the officer making the sale shall prepare a deed to the
16-24 purchaser. The taxing unit that requested the sale may elect to
16-25 prepare a deed for execution by the officer. If the taxing unit
16-26 prepares the deed, the officer shall execute that deed. As soon
16-27 as practicable after a deed is executed by the officer, the [The]
17-1 officer shall [execute the deed and] either file the deed for
17-2 recording with the county clerk or deliver the executed deed to the
17-3 taxing unit that requested the sale, which shall file the deed for
17-4 recording with the county clerk. The county clerk shall file and
17-5 record each deed under this subsection and after recording shall
17-6 return the deed to the grantee.
17-7 (e) The presiding officer of a taxing unit selling real
17-8 property under Subsection (h) or (i), under Section 34.051, or
17-9 under Section 253.010, Local Government Code, or the sheriff or
17-10 constable selling real property under Subsections (c) and (d)
17-11 [pursuant to this section] shall execute a deed to the property
17-12 conveying to the purchaser the right, title, and interest acquired
17-13 or held by each taxing unit that was a party to the judgment
17-14 foreclosing tax liens on the property. The conveyance shall be
17-15 made subject to any remaining right of redemption at the time of
17-16 the sale.
17-17 SECTION 17. Section 34.051(b), Tax Code, is amended to read
17-18 as follows:
17-19 (b) Any taxing unit may enter into an interlocal agreement
17-20 with the municipality for the resale of tax foreclosed properties
17-21 to be used for a purpose consistent with the municipality's urban
17-22 redevelopment plans or the municipality's affordable housing
17-23 policy. If the tax foreclosed property is resold pursuant to this
17-24 section to be used for a purpose consistent with the municipality's
17-25 urban redevelopment plan or affordable housing policy, the deed of
17-26 conveyance must refer to or set forth the applicable terms of the
17-27 urban redevelopment plan or affordable housing policy. Any such
18-1 interlocal agreement should include the following:
18-2 (1) a general statement and goals of the
18-3 municipality's urban redevelopment plans or affordable housing
18-4 policy, as applicable;
18-5 (2) a statement that the interlocal agreement concerns
18-6 only tax foreclosed property that is either vacant or distressed
18-7 and has a tax delinquency of six or more years;
18-8 (3) a statement that the properties will be used only
18-9 for a purpose consistent with an urban redevelopment plan or
18-10 affordable housing policy, as applicable, that is primarily aimed
18-11 at providing housing for families of low or moderate income;
18-12 (4) a statement that the principal goal of the
18-13 interlocal agreement is to provide an efficient mechanism for
18-14 returning deteriorated or unproductive properties to the tax rolls,
18-15 enhancing the value of ownership to the surrounding properties, and
18-16 improving the safety and quality of life in deteriorating
18-17 neighborhoods; and
18-18 (5) a provision that all properties are sold subject
18-19 to any right of redemption.
18-20 SECTION 18. Section 34.07, Tax Code, is amended by amending
18-21 Subsection (d) and adding Subsection (f) to read as follows:
18-22 (d) In lieu of pursuing the subrogation rights provided by
18-23 this section to which a purchaser is subrogated, a purchaser at a
18-24 void tax sale or tax resale may elect to file an action against the
18-25 taxing units to which [the] proceeds of the sale were distributed
18-26 to recover an [the] amount from each taxing unit equal to the
18-27 distribution of taxes, penalties, interest, and attorney's fees the
19-1 taxing unit received [paid at the sale]. In a suit filed under
19-2 this subsection, the purchaser may include a claim for, and is
19-3 entitled to recover, any excess proceeds of the sale that remain on
19-4 deposit in the registry of the court or, in the alternative, is
19-5 entitled to have judgment against any party to whom the excess
19-6 proceeds have been distributed. A purchaser who files a suit
19-7 authorized by this subsection waives all rights of subrogation
19-8 otherwise provided by this section. This subsection applies only
19-9 to an original purchaser at a tax sale or resale and only if that
19-10 purchaser has not subsequently sold the property to another person.
19-11 (f) A suit filed against the taxing units under Subsection
19-12 (d) may not be maintained unless the action is instituted before
19-13 the first anniversary of the date of sale or resale. In this
19-14 subsection:
19-15 (1) "Date of sale" means the first Tuesday of the
19-16 month on which the sheriff or constable conducted the sale of the
19-17 property under Section 34.01.
19-18 (2) "Date of resale" means the date on which the
19-19 grantor's acknowledgment was taken or, in the case of multiple
19-20 grantors, the latest date of acknowledgment by the grantors as
19-21 shown in the deed.
19-22 SECTION 19. Section 34.21(b), Tax Code, is amended to read as
19-23 follows:
19-24 (b) If property that was used as the owner's residence
19-25 homestead or was land designated for agricultural use when the suit
19-26 or the application for the warrant was filed is bid off to a taxing
19-27 unit under Section 34.01(j) or (p) and has not been resold by the
20-1 taxing unit, the owner having a right of redemption may redeem the
20-2 property on or before the second anniversary of the date on which
20-3 the deed of the taxing unit is filed for record by paying the
20-4 taxing unit:
20-5 (1) the lesser of the amount of the judgment against
20-6 the property or the market value of the property as specified in
20-7 that judgment, plus the amount of the fee for filing the taxing
20-8 unit's deed and the amount spent by the taxing unit as costs on the
20-9 property, if the property was judicially foreclosed and bid off to
20-10 the taxing unit under Section 34.01(j); or
20-11 (2) the lesser of the amount of taxes, penalties,
20-12 interest, and costs for which the warrant was issued or the market
20-13 value of the property as specified in the warrant, plus the amount
20-14 of the fee for filing the taxing unit's deed and the amount spent
20-15 by the taxing unit as costs on the property, if the property was
20-16 seized under Subchapter E, Chapter 33, and bid off to the taxing
20-17 unit under Section 34.01(p).
20-18 SECTION 20. Section 42.02, Tax Code, is amended to read as
20-19 follows:
20-20 Sec. 42.02. RIGHT OF APPEAL BY CHIEF APPRAISER. On written
20-21 approval of the board of directors of the appraisal district, the
20-22 [The] chief appraiser is entitled to appeal an order of the
20-23 appraisal review board determining:
20-24 (1) a taxpayer protest as provided by Subchapter C,
20-25 Chapter 41; or
20-26 (2) a taxpayer's motion to change the appraisal roll
20-27 filed under Section 25.25 [of this code if he has written approval
21-1 of the local appraisal district board of directors to appeal].
21-2 SECTION 21. Section 34.015, Tax Code, as amended by Chapters
21-3 181 and 817, Acts of the 76th Legislature, Regular Session, 1999,
21-4 is redesignated as Section 253.010, Local Government Code, and is
21-5 amended to conform to the changes made by those chapters to read as
21-6 follows:
21-7 Sec. 253.010. SALE OF REAL PROPERTY TO CERTAIN NONPROFIT OR
21-8 RELIGIOUS ORGANIZATIONS. (a) Notwithstanding any other provision
21-9 of law, the governing body of a municipality may provide for the
21-10 manner in which any land acquired by the municipality may be sold
21-11 if the land is sold to:
21-12 (1) a nonprofit organization that develops housing for
21-13 low-income individuals and families as a primary activity to
21-14 promote community-based revitalization of the municipality;
21-15 (2) a nonprofit corporation described by 26 U.S.C.
21-16 Section 501(c)(3) that:
21-17 (A) has been incorporated in this state for at
21-18 least one year;
21-19 (B) has a corporate purpose to develop
21-20 affordable housing that is stated in its articles of incorporation,
21-21 bylaws, or charter;
21-22 (C) has at least one-fourth of its board of
21-23 directors residing in the municipality; and
21-24 (D) engages primarily in the building, repair,
21-25 rental, or sale of housing for low-income individuals and families;
21-26 or
21-27 (3) a religious organization that:
22-1 (A) owns other property located in the
22-2 municipality that is exempt from taxation under Section 11.20, Tax
22-3 Code; and
22-4 (B) has entered into a written agreement with
22-5 the municipality regarding the revitalization of the land.
22-6 (b) A municipality operating under this section may by
22-7 ordinance determine the individuals and families who qualify as
22-8 low-income individuals and families under Subsection (a)(1) or (2).
22-9 In adopting an ordinance under this subsection, the municipality
22-10 shall consider median income of individuals and median family
22-11 income in the area.
22-12 SECTION 22. Section 33.04, Tax Code, is repealed.
22-13 SECTION 23. This Act takes effect September 1, 2001.
22-14 SECTION 24. The repeal of Section 33.04, Tax Code, by this
22-15 Act does not apply to taxes subject to a delinquent tax suit
22-16 pending before the effective date of this Act. The repeal of
22-17 Section 33.04, Tax Code, by this Act applies to all other taxes
22-18 that became delinquent before the effective date of this Act or
22-19 that become delinquent on or after that date. Penalties and
22-20 interest on a delinquent tax are not canceled under Section 33.04,
22-21 Tax Code, for failure to deliver any notice under that section as
22-22 it existed immediately before the effective date of this Act. A
22-23 delinquent tax that is the subject of a collection suit filed
22-24 before the effective date of this Act is governed by Section 33.04,
22-25 Tax Code, as that section existed immediately before the effective
22-26 date of this Act, and the former law is continued in effect for
22-27 that purpose.
23-1 SECTION 25. Sections 33.06 and 33.065, Tax Code, as amended
23-2 by this Act, apply to penalties and interest that accrued on a
23-3 delinquent tax before September 1, 2001, or that accrue on or after
23-4 that date, regardless of whether the deferral or abatement period
23-5 under the applicable section of that code began before September 1,
23-6 2001, or begins on or after that date.
23-7 SECTION 26. Sections 33.21, 33.23, and 33.25, Tax Code, as
23-8 amended by this Act, apply only to a case in which an application
23-9 for a tax warrant under Subchapter B, Chapter 33, Tax Code, is
23-10 filed on or after September 1, 2001. A case in which the
23-11 application for a tax warrant was filed under that subchapter
23-12 before September 1, 2001, is governed by the law in effect on the
23-13 date the application for the tax warrant was filed, and the former
23-14 law is continued in effect for that purpose.
23-15 SECTION 27. Sections 33.42 and 34.04, Tax Code, as amended by
23-16 this Act, apply to the disposition of excess proceeds from a
23-17 property tax foreclosure or a summary sale of seized property,
23-18 regardless of the date on which the judgment was rendered, the tax
23-19 sale was conducted, or the deposit of proceeds with the court was
23-20 made.
23-21 SECTION 28. Sections 33.48 and 33.49, Tax Code, as amended by
23-22 this Act, apply to a suit that was filed before September 1, 2001,
23-23 or that is filed on or after that date, and to a judgment on the
23-24 merits that is entered on or after that date.
23-25 SECTION 29. Section 33.56, Tax Code, as amended by this Act,
23-26 applies to a tax foreclosure judgment that was rendered before
23-27 September 1, 2001, or that is rendered on or after that date.
24-1 SECTION 30. (a) Sections 34.01(b), (m), (o), (p), and (r),
24-2 Tax Code, as amended by this Act, apply to each tax sale that is
24-3 conducted on or after September 1, 2001, regardless of whether the
24-4 judgment on which the sale is based was entered before, on, or
24-5 after that date.
24-6 (b) Section 34.01(l), Tax Code, as amended by this Act,
24-7 applies only to taxes and claims, or a lien securing those taxes or
24-8 claims, that remain unpaid on or after September 1, 2001, and that
24-9 are canceled or extinguished under that section, as amended by this
24-10 Act, regardless of the date on which the tax sale was conducted.
24-11 (c) For purposes of this section, the date on which a tax
24-12 sale was conducted is considered to be the first Tuesday of the
24-13 month in which the public auction sale occurs.
24-14 SECTION 31. (a) Section 34.05, Tax Code, as amended by this
24-15 Act, applies to a resale of property that is conducted on or after
24-16 September 1, 2001, regardless of whether the judgment was signed
24-17 before that date or is signed on or after that date.
24-18 (b) For purposes of this section, the date on which a resale
24-19 is conducted is considered to be:
24-20 (1) the date on which a public sale occurs under
24-21 Section 34.05(c), Tax Code; or
24-22 (2) for a sale under Section 34.051 or 34.05(h) or
24-23 (i), Tax Code, or under Section 253.010, Local Government Code, the
24-24 date on which the grantor's acknowledgment was taken or, if
24-25 multiple grantors, the latest date of acknowledgment of those
24-26 grantors.
24-27 SECTION 32. Section 34.07, Tax Code, as amended by this Act,
25-1 applies to a suit by the purchaser at a void tax sale or tax resale
25-2 filed on or after September 1, 2001, regardless of the date of the
25-3 tax sale or tax resale. A suit filed by a purchaser before
25-4 September 1, 2001, is governed by Section 34.07, Tax Code, as that
25-5 law existed immediately before that date, and the former law is
25-6 continued in effect for that purpose.
25-7 SECTION 33. Section 34.21, Tax Code, as amended by this Act,
25-8 applies to a redemption of property sold for taxes under a judgment
25-9 rendered or tax warrant that was issued before September 1, 2001,
25-10 or that is rendered or issued on or after that date.