79R7300 KCR-D


By:  Zedler                                                       H.B. No. 1716



A BILL TO BE ENTITLED

AN ACT

relating to the accuracy of certain tax liability estimates in 
contracts for residential real property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Property Code, is 
amended by adding Section 5.0101 to read as follows:
	Sec. 5.0101.  ACCURACY IN ESTIMATION OF TAX LIABILITY.  (a)  
In this section:
		(1)  "Builder" has the meaning assigned by Section 
401.003.          
		(2)  "Developer" means a person who owns a tract of land 
and who has divided or proposes to divide the tract into two or more 
parts to establish a subdivision.
		(3)  "Home" has the meaning assigned by Section 
401.002.             
		(4)  "Subdivision" has the meaning assigned by Section 
207.001.      
	(b)  If a builder or developer transfers the builder's or 
developer's interest in a home or parcel of land located in a 
subdivision to a homeowner or potential homeowner and the contract 
includes an estimate  of the ad valorem taxes to be assessed against 
the parcel or home for a tax year following the tax year in which the 
contract is entered into, the builder or developer must base the 
estimate on the ad valorem taxes assessed against similar parcels 
on which similar homes have been built and may not base the estimate 
on the ad valorem taxes assessed against the parcel before 
improvements, including a home, were made to or built on the parcel.
	(c)  A homeowner who, with a builder or developer, enters 
into a contract that violates Subsection (b) is entitled to recover 
from the builder or developer an amount equal to the difference 
between the ad valorem taxes estimated in the contract and the 
actual ad valorem taxes assessed if the estimated ad valorem taxes 
are more than 20 percent less than the actual ad valorem taxes.
	SECTION 2.  The change in law made by this Act applies only 
to a contract entered into on or after the effective date of this 
Act.  A contract that is entered into before the effective date of 
this Act is governed by the law in effect at the time the contract 
was entered into, and that law is continued in effect for that 
purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           


COMMITTEE AMENDMENT NO. 1
	Amend H.B. No. 1716 as follows:                                                
	(1)  On page 2, line 7, between "contract" and "and", insert 
"for the first tax year following the tax year in which the contract 
is entered into".
	(2)  On page 2, line 8, between "assessed" and "if", insert 
"for that tax year".

79R11443 KCR-D                                                          Bailey