By Heflin H.B. No. 490
77R3586 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to procedural and technical corrections of the Texas
1-3 Property Tax Code, with respect to multiple appraisals of a
1-4 property, notices of delinquency, penalties and interest on
1-5 deferred taxes, additional penalty on delinquent taxes against
1-6 property that escaped taxation in previous years, definitions of
1-7 personal property subject to seizure, notices of sale of seized
1-8 personal property and real property, excess proceeds of tax sales,
1-9 costs and expenses incurred in delinquent tax suits, post judgment
1-10 taxes, vacating void tax judgments and tax sales, costs of tax
1-11 sale, remedies of purchaser at void tax sale, redemptions, and
1-12 reenactment of duplicate or overlapping provisions in the Tax Code.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Subsections (b) and (c), Section 25.25, Tax Code,
1-15 are amended to read as follows:
1-16 (b) The chief appraiser may change the appraisal roll at any
1-17 time to correct a name or address, a determination of ownership, a
1-18 description of property, multiple appraisals of a property, or a
1-19 clerical error or other inaccuracy as prescribed by board rule that
1-20 does not increase the amount of tax liability. Before the 10th day
1-21 after the end of each calendar quarter, the chief appraiser shall
1-22 submit to the appraisal review board and to the board of directors
1-23 of the appraisal district a written report of each change made
1-24 under this subsection that decreases the tax liability of the owner
2-1 of the property. The report must include:
2-2 (1) a description of each property; and
2-3 (2) the name of the owner of that property.
2-4 (c) [At any time before the end of five years after January
2-5 1 of the tax year,] T[t]he appraisal review board, on motion of the
2-6 chief appraiser or of a property owner, may direct by written order
2-7 changes in the appraisal roll to correct:
2-8 (1) clerical errors that affect a property owner's
2-9 liability for a tax [imposed in that tax year;], or the inclusion
2-10 of property that does not exist in the form or at the location
2-11 described in the appraisal roll, if the board orders the change for
2-12 either such correction before the end of five years after January 1
2-13 of the tax year for which the correction is sought; or
2-14 (2) multiple appraisals of a property [in that tax
2-15 year; or] at any time.
2-16 [(3) the inclusion of property that does not exist in
2-17 the form or at the location described in the appraisal roll.]
2-18 SECTION 2. Section 33.04, Tax Code, as amended by Chapter
2-19 1481, Acts of the 76th Legislature, Regular Session, 1999, is
2-20 repealed.
2-21 SECTION 3. Subsections (a) and (d) of Section 33.06, Tax
2-22 Code, are amended to read as follows:
2-23 (a) An individual is entitled to defer or abate a suit to
2-24 collect a delinquent tax if the individual [he] is 65 years of age
2-25 or older and the tax was imposed against property that is owned and
2-26 occupied as a residence homestead by the individual [he owns and
2-27 occupies as a residence homestead the property on which the tax
3-1 subject to the suit is delinquent].
3-2 (d) A tax lien remains on the property and interest
3-3 continues to accrue during the period collection of taxes is
3-4 deferred under [as provided by] this section. The annual interest
3-5 rate during the deferral period is eight percent [a year] instead
3-6 of the rate provided by Section 33.01 [of this code]. All interest
3-7 and penalties that accrued or were incurred or imposed under
3-8 Sections 33.01 and 33.07 prior to the filing of an affidavit for
3-9 deferral or prior to the date on which a judgment or order of
3-10 abatement is signed are preserved. A penalty is not incurred under
3-11 Section 33.01 [may not be imposed] during a deferral period. The
3-12 additional penalty provided by Section 33.07 [of this code] may be
3-13 imposed during the deferral period. The additional penalty may be
3-14 collected only if the taxes for which collection is deferred remain
3-15 delinquent on or after the 91st day after the date the deferral
3-16 period expires. A plea of limitation, laches, or want of
3-17 prosecution does not apply against the taxing unit because of
3-18 deferral of collection as provided by this section.
3-19 SECTION 4. Section 33.065(g), Tax Code, is amended to read
3-20 as follows:
3-21 (g) A tax lien remains on the property and interest
3-22 continues to accrue during the period collection of delinquent
3-23 taxes is deferred under [as provided by] this section. The annual
3-24 interest rate during the deferral period is eight percent instead
3-25 of the rate provided by Section 33.01. All interest and penalties
3-26 that accrued or were incurred or imposed under Sections 33.01 and
3-27 33.07 of this code prior to the filing of an affidavit for deferral
4-1 or prior to the date on which a judgment or order of abatement is
4-2 signed are preserved. A penalty is not incurred under Section
4-3 33.01 [may not be imposed] on the delinquent taxes for which
4-4 collection is deferred during a deferral period. The additional
4-5 penalty provided by Section 33.07 may be imposed during the
4-6 deferral period. The additional penalty may be collected only if
4-7 the delinquent taxes for which collection is deferred remain
4-8 delinquent on or after the 91st day after the date the deferral
4-9 period expires. A plea of limitation, laches, or want of
4-10 prosecution does not apply against the taxing unit because of
4-11 deferral of collection as provided by this section.
4-12 SECTION 5. Section 33.08(b), Tax Code, is amended to read as
4-13 follows:
4-14 (b) The governing body of the taxing unit or appraisal
4-15 district, in the manner required by law for official action, may
4-16 provide that taxes that become delinquent on or after June 1 under
4-17 Section 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur an
4-18 additional penalty to defray costs of collection. The amount of
4-19 the penalty may not exceed 15 percent of the amount of taxes,
4-20 penalty, and interest due.
4-21 SECTION 6. Section 33.21, Tax Code, is amended by adding
4-22 Subsection (d) to read as follows:
4-23 (d) "Personal property" as used in this subchapter and
4-24 subject to seizure has the following meanings:
4-25 (1) the meaning assigned to "tangible personal
4-26 property" by Section 1.04(5) of this code;
4-27 (2) cash on hand;
5-1 (3) notes or accounts receivable, including rents and
5-2 royalties;
5-3 (4) demand or time deposits; and
5-4 (5) certificates of deposit.
5-5 SECTION 7. Section 33.23(c), Tax code, is amended to read as
5-6 follows:
5-7 (c) After a tax warrant is issued, the collector or the
5-8 peace officer shall take possession of the property pending its
5-9 sale. The person against whom a tax warrant is issued or another
5-10 person having possession of personal property of the person against
5-11 whom a tax warrant is issued shall surrender the property on
5-12 demand. The property may be secured by the collector and the peace
5-13 officer at the premises where it is seized pending its sale or,
5-14 alternatively, it may be removed by the collector or peace officer
5-15 to some other more convenient location. Another person having
5-16 possession of personal property of the person against whom a tax
5-17 warrant is issued and who surrenders the property on demand has no
5-18 liability to any person as a result of making the surrender. At
5-19 the time of surrender, the collector shall furnish to the other
5-20 person a sworn receipt describing the property surrendered. This
5-21 subsection shall not be construed so as to create any obligation on
5-22 the part of another person that exceeds, or materially differs
5-23 from, that person's obligation to the person against whom a tax
5-24 warrant is issued.
5-25 SECTION 8. Subsections (a) and (c), Section 33.25, Tax Code,
5-26 are amended to read as follows:
5-27 (a) Except as provided by subsection (c) [After a seizure of
6-1 personal property], the collector shall make a reasonable inquiry
6-2 after a seizure of personal property in order to determine the
6-3 identity and ascertain the address of any person having an interest
6-4 in the property other than the person against whom the tax warrant
6-5 is issued. The collector [He] shall deliver as soon as possible a
6-6 written notice stating the time and place of the sale and briefly
6-7 describing the property seized to the person against whom the
6-8 warrant is issued and to any other person the collector determines
6-9 [he discovers] has an interest in the property and whose address is
6-10 ascertained [he ascertains]. The notice of sale shall be delivered
6-11 in a manner authorized by Rule 21a, Texas Rules of Civil Procedure.
6-12 (c) After a seizure of personal property of the character
6-13 defined under subparts (2), (3), (4), or (5) of subsection (d),
6-14 Section 33.21 of this code, the collector shall apply the seized
6-15 property toward the payment of all taxes, penalties, and interest
6-16 included in the application for warrant and all costs of seizure.
6-17 SECTION 9. Section 33.42(c), Tax Code, is amended to read as
6-18 follows:
6-19 (c) If a tax required by this section to be included in a
6-20 suit is omitted from the judgment in the suit, the taxing unit may
6-21 not enforce collection of the tax at a later time[.], except as
6-22 provided by Section 34.04(c)(2).
6-23 SECTION 10. Subsections (a) and (b), Section 33.48, Tax
6-24 Code, are amended to read as follows:
6-25 (a) In addition to other costs authorized by law, a taxing
6-26 unit is entitled to recover the following costs and expenses in a
6-27 suit to collect a delinquent tax:
7-1 (1) all usual court costs, including the cost of
7-2 serving process;
7-3 (2) costs of filing for record a notice of lis pendens
7-4 against property;
7-5 (3) expenses of foreclosure sale;
7-6 (4) reasonable expenses that are incurred by the
7-7 taxing unit in determining the name, identity, and location of
7-8 necessary parties and in procuring necessary legal descriptions of
7-9 the property on which a delinquent tax is due; [and]
7-10 (5) attorney's fees in the amount of 15 percent of the
7-11 total amount of taxes, penalties, and interest due the unit; and[.]
7-12 (6) reasonable attorney ad litem fees approved by the
7-13 court and incurred in those suits where the court orders the
7-14 appointment of an attorney to represent the interests of a
7-15 defendant served with process by means of citation by publication
7-16 or posting.
7-17 (b) Each item specified by Subsection (a) of this section is
7-18 a charge against the property subject to foreclosure in the suit
7-19 and shall be collected out of the proceeds of the sale of the
7-20 property or, if the suit is for personal judgment, charged against
7-21 the defendant. The item of expense specified by Subpart (4) of
7-22 Subsection (a) is a charge against the property and secured by
7-23 lien, regardless of whether a suit is pending, so long as taxes on
7-24 that property were delinquent at the time the item of expense was
7-25 incurred. In any action brought by a taxing unit for the sole
7-26 purpose of enforcing its lien for expenses incurred under Subpart
7-27 (4), it is an affirmative defense available to the defendant that
8-1 the amount of those expenses is unreasonable.
8-2 SECTION 11. Section 33.49(a), Tax Code, is amended to read
8-3 as follows:
8-4 (a) Except as provided by Subsection (b) [of this section],
8-5 a taxing unit is not liable in a suit to collect taxes for court
8-6 costs, including any fees for service of process, an attorney ad
8-7 litem, arbitration, or mediation, and may not be required to post
8-8 security for the costs.
8-9 SECTION 12. Section 33.52(d), Tax Code, is amended to read
8-10 as follows:
8-11 (d) Except as provided by Section 34.01(l), a [A] taxing
8-12 unit's claim for taxes that become delinquent after the date of the
8-13 judgment is not affected by the entry of the judgment or a tax sale
8-14 conducted under that judgment[.], and t[T]hose taxes may be
8-15 collected by any remedy provided by this title.
8-16 SECTION 13. Section 33.56, Tax Code, is amended to read as
8-17 follows:
8-18 (a) If, in a suit to collect a delinquent tax, a court
8-19 renders a judgment for foreclosure of a tax lien on behalf of a
8-20 taxing unit, any [the] taxing unit that was a party to the judgment
8-21 may file a petition to vacate the judgment on any one or more of
8-22 the following grounds [for]:
8-23 (1) failure to join a person needed for just
8-24 adjudication under the Texas rules of Civil Procedure, including a
8-25 taxing unit required to be joined under Section 33.44(a);
8-26 (2) failure to serve a person needed for just
8-27 adjudication under the Texas rules of Civil Procedure, including a
9-1 taxing unit required to be joined under Section 33.44(a); [or]
9-2 (3) failure of the judgment to adequately describe the
9-3 property that is the subject of the suit[.]; or
9-4 (4) the property described in the judgment was subject
9-5 to duplicate appraisals for the tax years included in the judgment.
9-6 (b) The taxing unit must file the petition under the same
9-7 cause number as the delinquent tax suit and in the same court.
9-8 (c) The taxing unit may not file a petition if a tax sale of
9-9 the property has occurred unless:
9-10 (1) the tax sale has been vacated by an order of a
9-11 court; [or]
9-12 (2) the property was bid off to a [sold to the] taxing
9-13 unit under Section 34.01(j) [34.01(c)] and has not been resold[.];
9-14 or
9-15 (3) the tax sale or resale purchaser, or the
9-16 purchaser's heirs, successors or assigns, consents to the petition.
9-17 Consent may be shown by:
9-18 (i) a written memorandum signed by the
9-19 purchaser and filed with the court;
9-20 (ii) the purchaser's joinder in the taxing
9-21 unit's petition;
9-22 (iii) a statement in open court on the
9-23 record in a hearing on the petition; or
9-24 (iv) the purchaser's signature of approval
9-25 to an agreed order to grant the petition.
9-26 (d) A copy of the petition must be served, in a manner
9-27 authorized by Rule 21a, Texas Rules of Civil Procedure, on each
10-1 party to the delinquent tax suit.
10-2 (e) If the court grants the petition, the court shall enter
10-3 an order providing that:
10-4 (i) the judgment, any tax sale based under
10-5 that judgment and, if applicable, any resale are [is] vacated;
10-6 (ii) the tax deed and, if applicable, any
10-7 resale deed, are cancelled;
10-8 (iii) [and] the delinquent tax suit is
10-9 revived; and
10-10 (iv) except in cases where the judgment is
10-11 vacated under Subsection (a)(4), the taxes, penalties, interest,
10-12 attorney's fees and costs, together with the liens securing same,
10-13 are reinstated.
10-14 SECTION 14. Subsections (b),(l),(m),(o),(p), and (r) of
10-15 Section 34.01, Tax Code, are amended to read as follows:
10-16 (b) On receipt of an order of sale of real property, the
10-17 officer charged with selling the property shall endorse on the
10-18 order the date and exact time when the officer received the order.
10-19 The endorsement is a levy on the property without necessity for
10-20 going upon the ground. The officer shall calculate the total
10-21 amount due under the judgment, including all taxes, penalties, and
10-22 interest, plus any other amount awarded by the judgment, court
10-23 costs, and the costs of the sale.[,] Costs of the sale includes
10-24 [including] the costs of advertising, an additional amount not to
10-25 exceed $40.00 incurred in any physical inspection of the property,
10-26 and deed recording fees anticipated by the sale of the property.
10-27 To assist the officer in making the calculation, the collector of
11-1 any taxing unit that is party to the judgment may provide the
11-2 officer with a certified tax statement showing the amount of the
11-3 taxes included in the judgment that remain due that taxing unit,
11-4 including all penalties, interest and attorney's fees provided by
11-5 the judgment as of the date of the proposed sale. If a certified
11-6 tax statement is provided to the officer, the officer shall rely on
11-7 the amount included in the statement and is not responsible or
11-8 liable for the accuracy of that [the] applicable portion of the
11-9 calculation. A certified tax statement given under this subsection
11-10 need not be sworn and is sufficient so long as it is signed by the
11-11 tax collector or the collector's deputy.
11-12 (l) All of a taxing unit's existing liens of any character
11-13 that are not included and foreclosed in a tax foreclosure judgment
11-14 or that attach to the foreclosed property after the signing of the
11-15 judgment are extinguished as to that property, and the taxes or
11-16 other claims secured by those liens are cancelled and forever
11-17 barred, if:
11-18 (1) the taxing unit established its delinquent tax
11-19 liens as a participant in the judgment, and
11-20 (2) the property is bid off to a taxing unit under
11-21 Subsection (j) or (o).
11-22 [Notwithstanding that property is bid off to a taxing unit
11-23 under this section, a taxing unit that established a tax lien in
11-24 the suit may continue to enforce collection of any amount for which
11-25 a former owner of the property is liable to the taxing unit,
11-26 including any post judgment taxes, penalties, and interest, in any
11-27 other manner provided by law.]
12-1 (m) The officer making the sale shall prepare a deed to the
12-2 purchaser of real property at the sale, to any other person whom
12-3 the purchaser may specify, or to the taxing unit to which the
12-4 property was bid off. The taxing unit that requested the order of
12-5 sale may elect to prepare a deed for execution by the officer[.],
12-6 in which case the officer shall execute that deed. As soon as
12-7 practicable after execution, [T]the officer shall [execute the deed
12-8 and] either file the deed for recording with the county clerk or
12-9 deliver the executed deed to the taxing unit that requested the
12-10 order of sale, which shall file the deed for recording with the
12-11 county clerk. The county clerk shall file and record each deed
12-12 filed under this subsection and after recording shall return the
12-13 deed to the grantee.
12-14 (o) If a bid sufficient to pay the lesser of the amounts
12-15 specified under Subsection (p) is not received [Notwithstanding
12-16 Subsection (j), if a sufficient bid is not received], the officer
12-17 making the sale may bid off property seized under Subchapter E,
12-18 Chapter 33, to a person described by Section 11.181 or 11.20 for
12-19 less than the lesser of those amounts [tax warrant amount or the
12-20 market value of the property]. Consent to the sale by the taxing
12-21 units entitled to receive proceeds of the sale is not required.
12-22 The acceptance of a bid by the officer under this Subsection is
12-23 conclusive and binding on the question of its sufficiency. An
12-24 action to set aside the sale on the grounds that the bid is
12-25 insufficient may not be sustained in court, except that a taxing
12-26 unit that participates in distribution of proceeds of the sale may
12-27 file an action before the first anniversary of the date of the sale
13-1 to set aside the sale on the grounds of fraud or collusion between
13-2 the officer making the sale and the purchaser.
13-3 (p) Except as provided by Subsection (o), property seized
13-4 under Subchapter E, Chapter 33, may not be sold for an amount that
13-5 is less than the lesser of the market value of the property as
13-6 specified in the warrant or the total amount of taxes, penalties,
13-7 interest, costs, and other claims for which the warrant was issued
13-8 [due on the property]. If a sufficient bid is not received by the
13-9 officer making the sale, the officer shall bid the property off to
13-10 a taxing unit in the same manner and subject to the same provisions
13-11 as specified in Subsection (j). A taxing unit that takes title to
13-12 property under this Subsection [seized under that subchapter] takes
13-13 title [to the property] for the use and benefit of that taxing unit
13-14 and all other taxing units that established tax liens in the suit
13-15 or that, on the date of the seizure, were owed delinquent taxes on
13-16 the property.
13-17 (r) A sale of real property under this section must take
13-18 place at the county courthouse in the county in which the land is
13-19 located. The commissioners court may designate the area at the
13-20 county courthouse where sales under this section are to take place
13-21 and shall record any such designation in the real property records
13-22 of the county. All sales must occur in the designated area. If no
13-23 area is designated by the commissioners court under this section,
13-24 t[T]he sale shall occur in the same area [location] in the
13-25 courthouse that is designated by the commissioners court of the
13-26 county for the sale of real property under Section 51.002, Property
13-27 Code.
14-1 SECTION 15. Section 34.015, Tax Code, as amended by Chapters
14-2 181 and 817, Acts of the 76th Legislature, Regular Session, 1999,
14-3 is reenacted to read as follows:
14-4 (a) Notwithstanding any other provisions of this subchapter,
14-5 the governing body of a municipality may provide for the manner in
14-6 which any land acquired by the municipality may be sold if the land
14-7 is sold to:
14-8 (1) a nonprofit organization that develops housing for
14-9 low income individuals and families as a primary activity to
14-10 promote community-based revitalization of the municipality;
14-11 (2) a nonprofit corporation described by 26 U.S.C.
14-12 Section 501(c)(3) that:
14-13 (A) has been incorporated in this state for at
14-14 least one year;
14-15 (B) has a corporate purpose to develop
14-16 affordable housing that is stated in its articles of incorporation,
14-17 bylaws, or charter;
14-18 (C) has at least one-fourth of its board of
14-19 directors residing in the municipality; and
14-20 (D) engages primarily in the building, repair,
14-21 rental, or sale of housing for low income individuals and families;
14-22 or
14-23 (3) a religious organization that:
14-24 (A) owns other property located in the
14-25 municipality that is exempt from taxation under Section 11.20; and
14-26 (B) has entered into a written agreement with
14-27 the municipality regarding the revitalization of the land.
15-1 (b) A municipality operating under this section may be
15-2 ordinance determine the individuals and families who qualify as low
15-3 income individuals and families under Subsection (a)(1) or (2). In
15-4 adopting an ordinance under this subsection, the municipality shall
15-5 consider median income of individuals and median family income in
15-6 the area.
15-7 SECTION 16. Section 34.04, Tax Code, as amended by Chapters
15-8 1185 and 1481, Acts of the 76th Legislature, Regular Session, 1999,
15-9 is reenacted and amended to read as follows:
15-10 (a) A person, including a taxing unit, may file a petition
15-11 in the court that ordered the seizure or sale setting forth a claim
15-12 to the excess proceeds. The petition must be filed before the
15-13 second anniversary of the date of the sale of the property. The
15-14 petition is not required to be filed as an original suit separate
15-15 from the underlying suit for seizure of the property or foreclosure
15-16 of a tax lien on the property but may be filed under the cause
15-17 number of the underlying suit.
15-18 (b) A copy of the petition shall be served, in the manner
15-19 prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended,
15-20 or that rule's successor, on all parties to the underlying action
15-21 not later than the 20th day before the date set for a hearing on
15-22 the petition.
15-23 (c) At the hearing the court shall order that the proceeds
15-24 be paid according to the following priorities to each party that
15-25 establishes its claim to the proceeds:
15-26 (1) to the tax sale purchaser if the tax sale has been
15-27 adjudged void and the purchaser has prevailed in an action against
16-1 the taxing units under Section 34.07(d) by final judgment;
16-2 (2) [(1)] to a taxing unit for any taxes, penalties,
16-3 or interest that have become due or delinquent on the subject
16-4 property subsequent to the date of the judgment or that were
16-5 omitted from the judgment by accident or mistake;
16-6 (3) [(2)] to any other lienholder, consensual or
16-7 otherwise, for the amount due under a lien, in accordance with the
16-8 priorities established by applicable law;
16-9 (4) [(3)] to a taxing unit for any unpaid taxes,
16-10 penalties, interest, or other amounts adjudged due under the
16-11 judgment that were not satisfied from the proceeds from the tax
16-12 sale; and
16-13 (5) [(4)] to each owner of the property.
16-14 SECTION 17. Subsections (d) and (e) of Section 34.05, Tax
16-15 Code, are amended to read as follows:
16-16 (d) Except as provided by this subsection, all public sales
16-17 requested as provided by Subsection (c) shall be conducted in the
16-18 manner prescribed by the Texas Rules of Civil Procedure for the
16-19 sale of property under execution. The notice of the sale must
16-20 contain a description of the property to be sold, the sufficiency
16-21 of which is met if the description is stated in the manner provided
16-22 by Section 34.01(f) [which must be a legal description in the case
16-23 of real property], the number and style of the suit under which the
16-24 property was sold at the tax foreclosure sale, and the date of the
16-25 tax foreclosure sale. If the commissioners court of a county by
16-26 order specifies the date or time at which or location in the county
16-27 where a public sale requested under Subsection (c) shall be
17-1 conducted, the sale shall be conducted on the date and at the time
17-2 and location specified in the order. The acceptance of a bid by the
17-3 officer conducting the sale is conclusive and binding on the
17-4 question of its sufficiency. An action to set aside the sale on the
17-5 grounds that the bid is insufficient may not be sustained in court,
17-6 except that a taxing unit that participates in distribution of
17-7 proceeds of the sale may file an action before the first
17-8 anniversary of the date of the sale to set aside the sale on the
17-9 grounds of fraud or collusion between the officer making the sale
17-10 and the purchaser. On conclusion of the sale, the officer making
17-11 the sale shall prepare a deed to the purchaser. The taxing unit
17-12 that requested the sale may elect to prepare a deed for execution
17-13 by the officer[.], in which case the officer shall execute that
17-14 deed. As soon as practicable after execution, [T]the officer shall
17-15 [execute the deed and] either file the deed for recording with the
17-16 county clerk or deliver the executed deed to the taxing unit that
17-17 requested the sale, which shall file the deed for recording with
17-18 the county clerk. The county clerk shall file and record each deed
17-19 under this subsection and after recording shall return the deed to
17-20 the grantee.
17-21 (e) The presiding officer of a taxing unit selling real
17-22 property pursuant to subsections (h) or (i) of this Section,
17-23 Section 34.015, or Section 34.051, or the sheriff or constable
17-24 selling real property pursuant to subsections (c) and (d) of [to]
17-25 this S[s]ection shall execute a deed to the property conveying to
17-26 the purchaser the right, title, and interest acquired or held by
17-27 each taxing unit that was a party to the judgment foreclosing tax
18-1 liens on the property. The conveyance shall be made subject to any
18-2 remaining right of redemption at the time of the sale.
18-3 SECTION 18. Section 34.051(b), Tax Code, is amended to read
18-4 as follows:
18-5 (b) Any taxing unit may enter into an interlocal agreement
18-6 with the municipality for the resale of tax foreclosed properties
18-7 to be used for a purpose consistent with the municipality's urban
18-8 redevelopment plans or the municipality's affordable housing
18-9 policy. If the tax foreclosed property is resold pursuant to this
18-10 section to be used for a purpose consistent with the municipality's
18-11 urban redevelopment plan or affordable housing policy, the deed of
18-12 conveyance must refer to or set forth the applicable terms of the
18-13 urban redevelopment plan or the affordable housing policy. Any such
18-14 interlocal agreement should include the following:
18-15 (1) a general statement of the goals of the
18-16 municipality's urban redevelopment plans or its policy regarding
18-17 affordable housing;
18-18 (2) a statement that the interlocal agreement concerns
18-19 only tax foreclosed property that is either vacant or distressed
18-20 and has a tax delinquency of six or more years;
18-21 (3) a statement that the properties will be used only
18-22 for a purpose consistent with an urban redevelopment plan or an
18-23 affordable housing policy that is primarily aimed at providing
18-24 housing for families of low or moderate income;
18-25 (4) a statement that the principal goal of the
18-26 interlocal agreement is to provide an efficient mechanism for
18-27 returning deteriorated or unproductive properties to the tax rolls,
19-1 enhancing the value of ownership to the surrounding properties, and
19-2 improving the safety and quality of life in deteriorating
19-3 neighborhoods; and
19-4 (5) a provision that all properties are sold subject
19-5 to any right of redemption.
19-6 SECTION 19. Section 34.07, Tax Code, is amended by amending
19-7 Subsection (d) and adding Subsection (f) to read as follows:
19-8 (d) In lieu of pursuing the subrogation rights provided by
19-9 this section to which a purchaser is subrogated, a purchaser at a
19-10 void tax sale or tax resale may elect to file an action against the
19-11 taxing units to which [the] proceeds of the sale were distributed
19-12 to recover an amount from each taxing unit equal to the
19-13 distribution of taxes, penalties, interest, and attorney's fees it
19-14 received. [the amount paid at the sale]. In a suit filed under
19-15 this subsection, the purchaser may include a claim for, and is
19-16 entitled to recover, any excess proceeds of the sale that remain on
19-17 deposit in the registry of the court or, alternatively, have
19-18 judgment against any party to whom the excess proceeds have been
19-19 distributed. A purchaser who files a suit authorized by this
19-20 subsection waives all right of subrogation otherwise provided by
19-21 this section. This subsection applies only to an original
19-22 purchaser at a tax sale or resale and who has not subsequently sold
19-23 the property to another person.
19-24 (f) A suit against the taxing units under Subsection (d) may
19-25 not be maintained unless the action is instituted before the first
19-26 anniversary of the date of sale or resale. As used in this
19-27 subsection, the "date of sale" means the first Tuesday of the month
20-1 on which the sheriff or constable conducted the sale under Section
20-2 34.01, and the "date of resale" means the date on which the
20-3 grantor's acknowledgment was taken or, if multiple grantors, the
20-4 latest date of acknowledgment of the various grantors as shown in
20-5 the deed.
20-6 SECTION 20. Section 34.21(b), Tax Code, is amended to read as
20-7 follows:
20-8 (b) If property that was used as the owner's residence
20-9 homestead or was land designated for agricultural use when the suit
20-10 or the application for the warrant was filed is bid off to a taxing
20-11 unit under Section 34.01(j) or 34.01(p) and has not been resold by
20-12 the taxing unit, the owner having a right of redemption may redeem
20-13 the property on or before the second anniversary of the date on
20-14 which the deed of the taxing unit is filed for record by paying the
20-15 taxing unit:
20-16 (1) the lesser of the amount of the judgment against
20-17 the property or the market value of the property as specified in
20-18 that judgment, plus the amount of the fee for filing the taxing
20-19 unit's deed and the amount spent by the taxing unit as costs on the
20-20 property[.], if the property was judicially foreclosed and bid off
20-21 to the taxing unit under Section 34.01(j), or
20-22 (2) the lesser of the amount of taxes, penalties,
20-23 interest, and costs for which the warrant was issued or the market
20-24 value of the property as specified in the warrant, plus the amount
20-25 of the fee for filing the taxing unit's deed and the amount spent
20-26 by the taxing unit as costs on the property, if the property was
20-27 seized under Subchapter E, Chapter 33 and bid off to the taxing
21-1 unit under Section 34.01(p).
21-2 SECTION 21. Section 42.02, Tax Code, is amended to read as
21-3 follows:
21-4 Upon written approval of the local appraisal district board
21-5 of directors, t(T)he chief appraiser is entitled to appeal an order
21-6 of the appraisal review board determining:
21-7 (1) a taxpayer protest as provided by Subchapter C,
21-8 Chapter 41 [of this code if he has written approval of the local
21-9 appraisal district board of directors to appeal] or;
21-10 (2) a taxpayer's motion filed under Section 25.25 to
21-11 change the appraisal roll.
21-12 SECTION 22. This Act takes effect September 1, 2001.
21-13 SECTION 23. Except as to delinquent tax suits pending before
21-14 the effective date of this Act, the change in law made by SECTION 2
21-15 of this Act applies to all taxes remaining delinquent on the
21-16 effective date of this Act and that become delinquent thereafter;
21-17 and penalties and interest on a delinquent tax are not cancelled
21-18 under Section 33.04, Tax Code, for failure to deliver any notice
21-19 under that section as it existed in its various forms before the
21-20 effective date of this Act. A delinquent tax subject of a
21-21 collection suit filed before the effective date of this Act is
21-22 governed by Section 33.04, Tax Code, as it existed immediately
21-23 before the effective date of this Act, and that version of Section
21-24 33.04 is continued in effect for that purpose.
21-25 SECTION 24. The change in law made by SECTIONS 3 and 4 of
21-26 this Act applies to penalties and interest accrued before, on or
21-27 after the effective date of this Act on taxes subject to deferral
22-1 under Sections 33.06 and 33.065, Tax Code, without regard to
22-2 whether the deferral period began before, or begins on or after,
22-3 the effective date.
22-4 SECTION 25. The change in law made by SECTIONS 6, 7 and 8 of
22-5 this Act applies to all cases in which the application for tax
22-6 warrant was filed on or after the effective date of this Act. A
22-7 case in which the application for tax warrant was filed before the
22-8 effective date of this Act is governed by the law in effect before
22-9 the effective date, and the prior law is continued in effect for
22-10 that purpose.
22-11 SECTION 26. The change in law made by SECTIONS 9 and 16 of
22-12 this Act applies to the disposition of excess proceeds from a
22-13 property tax foreclosure or a summary sale of seized property
22-14 regardless of the date on which the judgment was rendered, the tax
22-15 sale was conducted, or the deposit of proceeds with the court was
22-16 made.
22-17 SECTION 27. The change in law made by SECTIONS 10 and 11 of
22-18 this Act applies to all suits filed before, on, or after the
22-19 effective date of this Act, and to judgments on the merits entered
22-20 on or after the effective date of this Act.
22-21 SECTION 28. The change in law made by SECTION 13 of this Act
22-22 applies to all tax foreclosure judgments rendered before, on, or
22-23 after the effective date of this Act.
22-24 SECTION 29. The change in law made to Subsections (b), (m),
22-25 (o), (p), and (r), Section 34.01, Tax Code, under SECTION 14 of
22-26 this Act applies to all tax sales conducted on or after the
22-27 effective date of this Act, whether the judgment on which the sale
23-1 is based was entered before, on, or after the effective date. The
23-2 change in law made to Section 34.01(l), Tax Code, under SECTION 14
23-3 of this Act applies only to those taxes and claims, together with
23-4 the liens securing same, that remain unpaid on or after the
23-5 effective date of this Act and that are cancelled or extinguished
23-6 under Section 34.01(l) as amended by this Act, regardless of the
23-7 date on which the tax sale was conducted. For purposes of this
23-8 section, the date on which a tax sale was conducted is considered
23-9 to be the first Tuesday of the month in which the public auction
23-10 sale occurs.
23-11 SECTION 30. The change in law made by SECTION 17 of this Act
23-12 applies to any resale of property conducted on or after the
23-13 effective date of this Act, based on a judgment signed before, on,
23-14 or after that effective date. For purposes of this section, the
23-15 date on which a resale is conducted is considered to be the date on
23-16 which a public auction sale occurs under Section 34.05(c), Tax
23-17 Code, or, in the case of a sale under Section 34.015, Section
23-18 34.051, or Subsections (h) or (i) of Section 34.05, Tax Code, the
23-19 date on which the grantor's acknowledgment was taken or, if
23-20 multiple grantors, the latest date of acknowledgment of the various
23-21 grantors.
23-22 SECTION 31. The change in law made by SECTION 19 of this Act
23-23 applies to any resale of property based on an original tax sale
23-24 conducted before, on, or after the effective date of this Act, and
23-25 applies to a suit by a purchaser filed on or after the effective
23-26 date of this Act. A suit filed by a purchaser before the effective
23-27 date of this Act is governed by the law in effect before the
24-1 effective date, and the prior law is continued in effect for that
24-2 purpose.
24-3 SECTION 32. The change in law made by SECTION 20 of this Act
24-4 applies to any redemption of property sold for taxes under a
24-5 judgment rendered or tax warrant issued before, on or after the
24-6 effective date of this Act.