By Carona S.B. No. 256
77R2783 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the recovery by a taxing unit of certain costs on the
1-3 resale of property bid off to the unit at a tax foreclosure sale.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 34.21(g)(2), Tax Code, is amended to read
1-6 as follows:
1-7 (2) "Costs" includes:
1-8 (A) the amount reasonably spent by the purchaser
1-9 for maintaining, preserving, and safekeeping the property,
1-10 including the cost of:
1-11 (i) [(A)] property insurance;
1-12 (ii) [(B)] repairs or improvements
1-13 required by a local ordinance or building code or by a lease of the
1-14 property in effect on the date of the sale;
1-15 (iii) [(C)] discharging a lien imposed by
1-16 a municipality to secure expenses incurred by the municipality in
1-17 remedying a health or safety hazard on the property;
1-18 (iv) [(D)] dues or assessments for
1-19 maintenance paid to a property owners' association under a recorded
1-20 restrictive covenant to which the property is subject; and
1-21 (v) [(E)] impact or standby fees imposed
1-22 under the Local Government Code or Water Code and paid to a
1-23 political subdivision; and
1-24 (B) if the purchaser is a taxing unit to which
2-1 the property is bid off under Section 34.01, personnel and overhead
2-2 costs reasonably incurred by the purchaser in connection with
2-3 maintaining, preserving, safekeeping, managing, and reselling the
2-4 property.
2-5 SECTION 2. This Act takes effect immediately if it receives
2-6 a vote of two-thirds of all the members elected to each house, as
2-7 provided by Section 39, Article III, Texas Constitution. If this
2-8 Act does not receive the vote necessary for immediate effect, this
2-9 Act takes effect September 1, 2001.