By Homer H.B. No. 2473
77R7699 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the right of redemption of real property sold at an ad
1-3 valorem tax sale.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 34.21(a)-(c) and (e), Tax Code, are
1-6 amended to read as follows:
1-7 (a) The owner of real property sold at a tax sale to a
1-8 purchaser other than a taxing unit that was used as the residence
1-9 homestead of the owner or that was land designated for agricultural
1-10 use when the suit or the application for the warrant was filed may
1-11 redeem the property on or before the first [second] anniversary of
1-12 the date on which the purchaser's deed is filed for record by
1-13 paying the purchaser the amount the purchaser bid for the property,
1-14 the amount of the deed recording fee, and the amount paid by the
1-15 purchaser as taxes, penalties, interest, and costs on the property,
1-16 plus a redemption premium of 25 percent of the aggregate total if
1-17 the property is redeemed during the first six months [year] of the
1-18 redemption period or 50 percent of the aggregate total if the
1-19 property is redeemed during the second six months [year] of the
1-20 redemption period.
1-21 (b) If property that was used as the owner's residence
1-22 homestead or was land designated for agricultural use when the suit
1-23 or the application for the warrant was filed is bid off to a taxing
1-24 unit under Section 34.01(j) and has not been resold by the taxing
2-1 unit, the owner having a right of redemption may redeem the
2-2 property on or before the first [second] anniversary of the date on
2-3 which the deed of the taxing unit is filed for record by paying the
2-4 taxing unit the lesser of the amount of the judgment against the
2-5 property or the market value of the property as specified in that
2-6 judgment, plus the amount of the fee for filing the taxing unit's
2-7 deed and the amount spent by the taxing unit as costs on the
2-8 property.
2-9 (c) If real property that was used as the owner's residence
2-10 homestead or was land designated for agricultural use when the suit
2-11 or the application for the warrant was filed has been resold by the
2-12 taxing unit under Section 34.05, the owner of the property having a
2-13 right of redemption may redeem the property on or before the first
2-14 [second] anniversary of the date on which the taxing unit files for
2-15 record the deed from the sheriff or constable by paying the person
2-16 who purchased the property from the taxing unit the amount the
2-17 purchaser paid for the property, the amount of the fee for filing
2-18 the purchaser's deed for record, the amount paid by the purchaser
2-19 as taxes, penalties, interest, and costs on the property, plus a
2-20 redemption premium of 25 percent of the aggregate total if the
2-21 property is redeemed in the first six months [year] of the
2-22 redemption period or 50 percent of the aggregate total if the
2-23 property is redeemed in the second six months [year] of the
2-24 redemption period.
2-25 (e) The owner of real property sold at a tax sale other than
2-26 property that was used as the residence homestead of the owner or
2-27 that was land designated for agricultural use when the suit or the
3-1 application for the warrant was filed may redeem the property in
3-2 the same manner and by paying the same amounts as prescribed by
3-3 Subsection (a), (b), (c), or (d), as applicable, except that:
3-4 (1) the owner's right of redemption may be exercised
3-5 not later than the 92nd [180th] day following the date on which the
3-6 purchaser's or taxing unit's deed is filed for record; and
3-7 (2) the redemption premium payable by the owner to a
3-8 purchaser other than a taxing unit may not exceed 25 percent.
3-9 SECTION 2. (a) This Act takes effect January 1, 2002, but
3-10 only if the constitutional amendment proposed by the 77th
3-11 Legislature, Regular Session, 2001, to shorten the period in which
3-12 the former owner of real property sold at an ad valorem tax sale
3-13 may redeem the property is approved by the voters. If that
3-14 amendment is not approved by the voters, this Act has no effect.
3-15 (b) This Act applies to redemption of real property sold at
3-16 a tax sale for which the purchaser's deed is filed for record on or
3-17 after the effective date of this Act. Redemption of real property
3-18 sold at a tax sale for which the purchaser's deed is filed for
3-19 record before the effective date of this Act is covered by the law
3-20 in effect when the deed is filed, and the former law is continued
3-21 in effect for that purpose.