By: Goodman (Senate Sponsor - Armbrister) H.B. No. 3071
(In the Senate - Received from the House May 13, 2005;
May 16, 2005, read first time and referred to Committee on
Intergovernmental Relations; May 23, 2005, reported favorably by
the following vote: Yeas 4, Nays 0; May 23, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the administration and collection of ad valorem taxes
and the administration of appraisal districts; making procedural
and technical corrections and clarifications to the Tax Code,
Property Code, and Civil Practice and Remedies Code.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.07(b), Tax Code, is amended to read as
follows:
(b) The official or agency shall address the notice to the
property owner, the person designated under Section 1.111(f) to
receive the notice for the property owner, if that section applies,
or, if appropriate, the property owner's agent at the agent's [his]
address according to the most recent record in the possession of the
official or agency. However, if a property owner files a written
request with the appraisal district that notices be sent to a
particular address, the official or agency shall send the notice to
the address stated in the request.
SECTION 2. Section 1.11(b), Tax Code, is amended to read as
follows:
(b) To be effective, a [A] request made under [pursuant to]
this section must be filed with the appraisal district. A request
remains in effect until revoked by a written revocation filed with
the appraisal district by the owner.
SECTION 3. Section 6.02(a), Tax Code, is amended to read as
follows:
The [(a) Except as otherwise provided by this section, the]
appraisal district's boundaries are the same as the county's
boundaries. This section does not preclude the boards of directors
of two or more adjoining appraisal districts from providing for the
operation of a consolidated appraisal district by interlocal
contract.
SECTION 4. Section 6.035(a), Tax Code, is amended to read as
follows:
(a) An individual is ineligible to serve on an appraisal
district board of directors and is disqualified from employment as
chief appraiser if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06, 33.061, or 33.065.
SECTION 5. Section 6.412(a), Tax Code, is amended to read as
follows:
(a) An individual is ineligible to serve on an appraisal
review board if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district for which
the appraisal review board is established; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06, 33.061, or 33.065.
SECTION 6. Section 11.43, Tax Code, is amended by adding
Subsections (l) and (m) to read as follows:
(l) The form for an application under Section 11.13 must
include a space for the applicant to state the applicant's date of
birth. Failure to provide the date of birth does not affect the
applicant's eligibility for an exemption under that section, other
than an exemption under Section 11.13(c) or (d) for an individual 65
years of age or older.
(m) Notwithstanding Subsections (a) and (k), a person who
receives an exemption under Section 11.13, other than an exemption
under Section 11.13(c) or (d) for an individual 65 years of age or
older, in a tax year is entitled to receive an exemption under
Section 11.13(c) or (d) for an individual 65 years of age or older
in the next tax year on the same property without applying for the
exemption if the person becomes 65 years of age in that next year as
shown by information in the records of the appraisal district that
was provided to the appraisal district by the individual in an
application for an exemption under Section 11.13 on the property or
in correspondence relating to the property. This subsection does
not apply if the chief appraiser determines that the individual is
no longer entitled to any exemption under Section 11.13 on the
property.
SECTION 7. Section 22.28, Tax Code, is amended by amending
Subsection (b) and adding Subsection (c) to read as follows:
(b) The chief appraiser shall certify to the assessor for
each taxing unit participating in the appraisal district that
imposes taxes on the property that the chief appraiser has imposed
[may retain a portion of] a penalty [collected] under this section
[, not to exceed 20 percent of the amount of the penalty, to cover
the chief appraiser's costs of collecting the penalty]. The
assessor [chief appraiser] shall add the amount of the penalty to
the original amount of tax imposed on the property and shall include
that amount in the tax bill for that year. The penalty becomes part
of the tax on the property and is secured by the tax lien that
attaches to the property under Section 32.01 [distribute the
remainder of the penalty to each taxing unit participating in the
appraisal district that imposes taxes on the property in proportion
to the taxing unit's share of the total amount of taxes imposed on
the property by all taxing units participating in the district].
(c) To help defray the costs of administering this chapter,
a collector who collects a penalty imposed under Subsection (a)
shall remit to the appraisal district that employs the chief
appraiser who imposed the penalty an amount equal to five percent of
the penalty amount collected.
SECTION 8. Section 25.25(d), Tax Code, is amended to read as
follows:
(d) At any time prior to the date the taxes become
delinquent, a property owner or the chief appraiser may file a
motion with the appraisal review board to change the appraisal roll
to correct an error that resulted in an incorrect appraised value
for the owner's property. However, the error may not be corrected
unless it resulted in an appraised value that exceeds by more than
one-third the correct appraised value. If the appraisal roll is
changed under this subsection, the property owner must pay to each
affected taxing unit a late-correction penalty equal to 10 percent
of the amount of taxes as calculated on the basis of the corrected
appraised value. Payment of the late-correction penalty is secured
by the lien that attaches to the property under Section 32.01 and is
subject to enforced collection under Chapter 33. The roll may not be
changed under this subsection if:
(1) the property was the subject of a protest brought
by the property owner under Chapter 41, a hearing on the protest was
conducted in which the property owner offered evidence or argument,
and the appraisal review board made a determination of the protest
on the merits; or
(2) the appraised value of the property was
established as a result of a written agreement between the property
owner or the owner's agent and the appraisal district.
SECTION 9. Section 26.11(c), Tax Code, is amended to read as
follows:
(c) If the amount of prorated taxes determined to be due as
provided by this section is tendered to the collector for the unit,
the collector [he] shall accept the tender. The payment absolves:
(1) the transferor of liability for taxes by the unit
on the property for the year of the transfer; and
(2) the taxing unit of liability for a refund in
connection with taxes on the property for the year of the transfer.
SECTION 10. Section 31.073, Tax Code, is amended to read as
follows:
Sec. 31.073. RESTRICTED OR CONDITIONAL PAYMENTS
PROHIBITED. A restriction or condition placed on a check in payment
of taxes, penalties, or interest by the maker that limits the amount
of taxes, penalties, or interest owed to an amount less than that
stated in the tax bill or shown by the tax collector's records is
void unless the restriction or condition is authorized by this
code.
SECTION 11. Section 31.08(a), Tax Code, is amended to read
as follows:
(a) At the request of any person, a collector for a taxing
unit shall issue a certificate showing the amount of delinquent
taxes, penalties, [and] interest, and any known costs and expenses
under Section 33.48 due the unit on a property according to the
unit's current tax records. If the collector collects taxes for
more than one taxing unit, the certificate must show the amount of
delinquent taxes, penalties, [and] interest, and any known costs
and expenses under Section 33.48 due on the property to each taxing
unit for which the collector collects the taxes. The collector
shall charge a fee not to exceed $10 for each certificate issued.
The collector shall pay all fees collected under this section into
the treasury of the taxing unit that employs the collector [him].
SECTION 12. Section 32.05, Tax Code, is amended by amending
Subsections (b) and (c) and adding Subsections (b-1), (d), and (e)
to read as follows:
(b) Except as provided by Subsection (c)(1) [(c) of this
section], a tax lien provided by this chapter takes priority over:
(1) the claim of any creditor of a person whose
property is encumbered by the lien;
(2) [and over] the claim of any holder of a lien on
property encumbered by the tax lien, including any lien held by a
property owners' association, homeowners' association, condominium
unit owners' association, or council of owners of a condominium
regime under a restrictive covenant, condominium declaration,
master deed, or other similar instrument that secures regular or
special maintenance assessments, fees, dues, interest, fines,
costs, attorney's fees, or other monetary charges against the
property; and
(3) any right of remainder, right or possibility of
reverter, or other future interest in, or encumbrance against, the
property, whether vested or contingent [not the debt or lien
existed before attachment of the tax lien].
(b-1) The priority given to a tax lien by Subsection (b)
prevails, regardless of whether the debt, lien, future interest, or
other encumbrance existed before attachment of the tax lien.
(c) A tax lien provided by this chapter is inferior to [a
claim]:
(1) a claim for any survivor's allowance, funeral
expenses, or expenses of the last illness of a decedent made against
the estate of a decedent as provided by law;
(2) except as provided by Subsection (b)(2), [under] a
recorded restrictive covenant that runs [running] with the land
and was[, other than a restrictive covenant in favor of a property
owners' association or homeowners' association] recorded before
January 1 of the year the tax lien arose; or
(3) [under] a valid easement of record recorded before
January 1 of the year the tax lien arose.
(d) In an action brought under Chapter 33 for the enforced
collection of a delinquent tax against property, a property owners'
association, homeowners' association, condominium unit owners'
association, or council of owners of a condominium regime that
holds a lien for regular or special maintenance assessments, fees,
dues, interest, fines, costs, attorney's fees, or other monetary
charges against the property is not a necessary party to the action
unless, at the time the action is commenced, notice of the lien in a
liquidated amount is evidenced by a sworn instrument duly executed
by an authorized person and recorded with the clerk of the county in
which the property is located. A tax sale of the property
extinguishes the lien held by a property owners' association,
homeowners' association, condominium unit owners' association, or
council of owners of a condominium regime for all amounts that
accrued before the date of sale if:
(1) the holder of the lien is joined as a party to an
action brought under Chapter 33 by virtue of a notice of the lien on
record at the time the action is commenced; or
(2) the notice of lien is not on record at the time the
action is commenced, regardless of whether the holder of the lien is
made a party to the action.
(e) The existence of a recorded restrictive covenant,
declaration, or master deed that generally provides for the lien
held by a property owners' association, homeowners' association,
condominium unit owners' association, or council of owners of a
condominium regime does not, by itself, constitute actual or
constructive notice to a taxing unit of a lien under Subsection (d).
SECTION 13. Sections 33.011(a) and (d), Tax Code, are
amended to read as follows:
(a) The governing body of a taxing unit:
(1) shall waive penalties and may provide for the
waiver of interest on a delinquent tax if an act or omission of an
officer, employee, or agent of the taxing unit or the appraisal
district in which the taxing unit participates caused or resulted
in the taxpayer's failure to pay the tax before delinquency and if
the tax is paid not later than the 21st day after the date the
taxpayer knows or should know of the delinquency; and
(2) may waive penalties and provide for the waiver of
interest on a delinquent tax if:
(A) the property for which the tax is owed is
acquired by a religious organization; and
(B) [that qualifies the property for exemption
under Section 11.20] before the first anniversary of the date the
religious organization acquires the property, the organization
pays the tax and qualifies the property for an exemption under
Section 11.20 as evidenced by the approval of the exemption by the
chief appraiser under Section 11.45.
(d) A request for a waiver of penalties and interest under
Subsection (a)(1), (b), or (h) [this section] must be made before
the 181st day after the delinquency date. A request for a waiver of
penalties and interest under Subsection (a)(2) must be made before
the first anniversary of the date the religious organization
acquires the property. To be valid, a waiver of penalties or
interest under this section must be requested in writing. If a
written request for a waiver is not timely made, the governing body
of a taxing unit may not waive any penalties or interest under this
section.
SECTION 14. Section 33.02(a), Tax Code, is amended to read
as follows:
(a) The collector for a taxing unit [that collects its own
taxes] may enter an agreement with a person delinquent in the
payment of the tax for payment of the tax, penalties, and interest
in installments. The agreement must be in writing and may not
extend for a period of more than 36 months.
SECTION 15. Subchapter A, Chapter 33, Tax Code, is amended
by adding Section 33.045 to read as follows:
Sec. 33.045. NOTICE OF PROVISIONS AUTHORIZING DEFERRAL OR
ABATEMENT. (a) A tax bill mailed by an assessor or collector under
Section 31.01 and any written communication delivered to a property
owner by an assessor or collector for a taxing unit or an attorney
or other agent of a taxing unit that specifically threatens a
lawsuit to collect a delinquent tax shall contain the following
explanation in capital letters: "IF YOU ARE 65 YEARS OF AGE OR OLDER
OR ARE DISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR
RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE APPRAISAL DISTRICT
REGARDING ANY ENTITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE
PAYMENT OF THESE TAXES.".
(b) This section does not apply to a communication that
relates to taxes that are the subject of pending litigation.
SECTION 16. The heading to Section 33.06, Tax Code, is
amended to read as follows:
Sec. 33.06. DEFERRED COLLECTION OF TAXES ON RESIDENCE
HOMESTEAD OF [ELDERLY OR] DISABLED PERSON.
SECTION 17. Sections 33.06(a) and (b), Tax Code, are
amended to read as follows:
(a) An individual is entitled to defer collection of a tax,
abate a suit to collect a delinquent tax, or abate a sale to
foreclose a tax lien if [the individual]:
(1) the individual [is 65 years of age or older or] is
disabled as defined by Section 11.13(m); and
(2) the tax was imposed against property that the
individual owns and occupies as a residence homestead.
(b) To obtain a deferral, an individual must file with the
chief appraiser for the appraisal district in which the property is
located an affidavit stating the facts required to be established
by Subsection (a). The chief appraiser shall notify each taxing
unit participating in the district of the filing. After an
affidavit is filed under this subsection, a taxing unit may not file
or threaten to file suit to collect delinquent taxes on the property
or take other action against the individual to collect delinquent
taxes on the property and the property may not be sold at a sale to
foreclose the tax lien until the 181st day after the date the
individual no longer owns and occupies the property as a residence
homestead.
SECTION 18. Subchapter A, Chapter 33, Tax Code, is amended
by adding Section 33.061 to read as follows:
Sec. 33.061. AUTOMATIC DEFERRAL OR ABATEMENT OF COLLECTION
OF TAXES ON RESIDENCE HOMESTEAD OF ELDERLY PERSON. (a) This
section applies only to property that an individual who is 65 years
of age or older owns and occupies as a residence homestead.
(b) A taxing unit may not file or threaten to file suit to
collect delinquent taxes on the property or take other action
against the individual to collect delinquent taxes on the property
and the property may not be sold at a sale to foreclose the tax lien
until the 181st day after the date the individual no longer owns and
occupies the property as a residence homestead. This subsection
does not prohibit a taxing unit or an attorney or other agent of a
taxing unit from delivering to an individual a notice that
delinquent taxes are owing on the individual's residence homestead.
(c) If property is sold in violation of this section, the
property owner may file a motion to set aside the sale under the
same cause number and in the same court as a judgment referenced in
the order of sale. The motion must be filed during the applicable
redemption period as set forth in Section 34.21. This right is not
transferable to a third party.
(d) This section does not affect the duty of the assessor
for the taxing unit to prepare and mail a bill for the taxes on the
property as provided by Section 31.01. A tax lien remains on the
property and interest continues to accrue during the period that
collection of taxes is deferred or abated under this section. The
annual interest rate during the period of deferral or abatement is
eight percent instead of the rate provided by Section 33.01.
Interest and penalties that accrued or that were incurred or
imposed under Section 33.01 or 33.07 before the date the individual
attained the age of 65 are preserved. A penalty under Section 33.01
is not incurred during a period of deferral or abatement. The
additional penalty under Section 33.07 may be imposed and collected
only if the taxes for which collection is deferred or abated remain
delinquent on or after the 181st day after the date the period of
deferral or abatement expires. A plea of limitation, laches, or
want of prosecution does not apply against the taxing unit because
of a deferral or abatement of collection under this section.
(e) Each year the chief appraiser for each appraisal
district shall publicize in a manner reasonably designed to notify
all residents of the district or county of the provisions of this
section.
(f) For the first tax year that an individual who qualifies
for a deferral or abatement under this section or a person acting on
behalf of the individual fails to pay the taxes on the property
before the delinquency date, the collector for the taxing unit, not
later than the 15th day after the date the taxes become delinquent,
shall mail the individual a notice in the following form:
"Dear Property Owner:
"The records of (name of taxing unit) indicate that the (tax
year) property taxes on your home were not paid before the
delinquency date. The law entitles you to an automatic deferral or
abatement of those taxes. This means that the governmental
entities that impose property taxes on your home may not sue you,
threaten to sue you, sell your home at a tax sale, or take any other
action to collect the delinquent taxes if you elect not to pay them
for as long as you continue to own and occupy your home. Your unpaid
taxes will accrue interest at the rate of eight percent per year,
and the entire amount will become due and payable once you cease to
own or occupy the home.
"You have the right to waive this deferral or abatement by
filing a signed statement with the chief appraiser of the (name of
county) appraisal district stating that you elect not to receive
the deferral or abatement.
"Whether you choose to waive the deferral or abatement, you
may pay your property taxes voluntarily in any year. (Name of
taxing unit) will continue to mail you a tax bill each year so that
you will know your tax liability. If your home is subject to a
mortgage or deed of trust, you should consult with your mortgage
lender or the beneficiary under your deed of trust before you elect
to accept or waive the deferral or abatement. Failure to pay taxes
timely may violate your mortgage or deed of trust.
"If you have any questions about this notice, please call or
write us. You may also contact the state comptroller's property tax
division at (current telephone number for the comptroller's
property tax division)."
(g) A taxing unit shall include in a notice under Subsection
(f) its name, address, and telephone number and any information
necessary to identify the property but may not include any other
information. The collector for a taxing unit who mails a notice
under Subsection (f) to an individual who qualifies for a deferral
or abatement under this section and whose taxes on the property for
a tax year are not paid before the delinquency date may mail a
notice as provided by Subsection (f) for any subsequent tax year for
which the individual's taxes on the property are not paid before
that date.
(h) If an individual who is 65 years of age or older dies,
the deferral or abatement of the collection of taxes on the property
continues in effect until the 181st day after the date the surviving
spouse of the individual no longer owns and occupies the property as
a residence homestead if:
(1) the property was the residence homestead of the
deceased spouse when the deceased spouse died;
(2) the surviving spouse was 55 years of age or older
when the deceased spouse died; and
(3) the property was the residence homestead of the
surviving spouse when the deceased spouse died.
(i) An individual may elect not to receive a deferral or
abatement under this section. An individual who elects not to
receive the deferral or abatement shall file with the chief
appraiser for the appraisal district in which the property is
located a written statement signed by the individual affirmatively
stating that the individual elects not to receive the deferral or
abatement. The election is effective on the date the chief
appraiser receives the individual's written statement. The chief
appraiser shall notify each taxing unit participating in the
district of the individual's election.
SECTION 19. Section 33.22, Tax Code, is amended by adding
Subsections (d) and (e) to read as follows:
(d) A collector is entitled to recover attorney's fees in an
amount equal to the compensation specified in the contract with the
attorney if:
(1) recovery of the attorney's fees is requested in the
application for the tax warrant;
(2) the taxing unit served by the collector contracts
with an attorney under Section 6.30;
(3) the existence of the contract and the amount of
attorney's fees that equals the compensation specified in the
contract are supported by the affidavit of the collector; and
(4) the tax sought to be recovered is not subject to
the additional penalty under Section 33.07 or 33.08 at the time the
application is filed.
(e) If a taxing unit is represented by an attorney who is
also an officer or employee of the taxing unit, the collector for
the taxing unit is entitled to recover attorney's fees in an amount
equal to 15 percent of the total amount of delinquent taxes,
penalties, and interest that the property owner owes the taxing
unit.
SECTION 20. Section 33.23(a), Tax Code, is amended to read
as follows:
(a) A tax warrant shall direct a peace officer in the county
and the collector to seize as much of the person's personal property
as may be reasonably necessary for the payment of all taxes,
penalties, [and] interest, and attorney's fees included in the
application and all costs of seizure and sale. The warrant shall
direct the person whose property is seized to disclose to the
officer executing the warrant the name and the address if known of
any other person having an interest in the property.
SECTION 21. Section 33.25, Tax Code, is amended by amending
Subsections (f) and (h) and adding Subsection (i) to read as
follows:
(f) The proceeds of a sale of property under this section
shall be applied to:
(1) any compensation owed to or any expense advanced
by the licensed auctioneer under an agreement entered into under
Subsection (b) or a service provider under an agreement entered
into under Subsection (c);
(2) all usual costs, expenses, and fees of the seizure
and sale, payable to the peace officer conducting the sale;
(3) all additional expenses incurred in advertising
the sale or in removing, storing, preserving, or safeguarding the
seized property pending its sale;
(4) all usual court costs payable to the clerk of the
court that issued the tax warrant; and
(5) taxes, penalties, [and] interest, and attorney's
fees included in the application for warrant.
(h) After a seizure of personal property defined by Sections
33.21(d)(2)-(5), the collector shall apply the seized property
toward the payment of the taxes, penalties, [and] interest, and
attorney's fees included in the application for warrant and all
costs of the seizure as required by Subsection (f).
(i) After a tax warrant is issued, the seizure or sale of the
property may be canceled and terminated at any time by the applicant
or an authorized agent or attorney of the applicant.
SECTION 22. Section 33.43(a), Tax Code, is amended to read
as follows:
(a) A petition initiating a suit to collect a delinquent
property tax is sufficient if it alleges that:
(1) the taxing unit is legally constituted and
authorized to impose and collect ad valorem taxes on property;
(2) tax in a stated amount was legally imposed on each
separately described property for each year specified and on each
person named if known who owned the property on January 1 of the
year for which the tax was imposed;
(3) the tax was imposed in the county in which the suit
is filed;
(4) the tax is delinquent;
(5) penalties, interest, and costs authorized by law
in a stated amount for each separately assessed property are due;
(6) the taxing unit is entitled to recover each
penalty that is incurred and all interest that accrues on
delinquent taxes imposed on the property from the date of the
judgment to the date of the sale under Section 34.01 or under
Section 253.010, Local Government Code, as applicable, if the suit
seeks to foreclose a tax lien;
(7) the person sued owned the property on January 1 of
the year for which the tax was imposed if the suit seeks to enforce
personal liability;
(8) the person sued owns the property when the suit is
filed if the suit seeks to foreclose a tax lien;
(9) the taxing unit asserts a lien on each separately
described property to secure the payment of all taxes, penalties,
interest, and costs due if the suit seeks to foreclose a tax lien;
(10) all things required by law to be done have been
done properly by the appropriate officials; [and]
(11) the attorney signing the petition or a person
acting on the attorney's behalf has reviewed the records of the
taxing unit or appraisal district and that the records reviewed do
not show that the property described in the petition is the
residence homestead of a person who is disabled or 65 years of age
or older; and
(12) the attorney signing the petition is legally
authorized to prosecute the suit on behalf of the taxing unit.
SECTION 23. Section 33.48, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) A collector who accepts a payment of the court costs and
other expenses described by this section shall disburse the amount
of the payment as follows:
(1) amounts owing under Subsections (a)(1), (2), (3),
and (6) are payable to the clerk of the court in which the suit is
pending; and
(2) expenses described by Subsection (a)(4) are
payable to the general fund of the taxing unit or to the person or
entity who advanced the expense.
SECTION 24. Section 33.51, Tax Code, is amended to read as
follows:
Sec. 33.51. WRIT OF POSSESSION. (a) If the court orders
the foreclosure of a tax lien and the sale of real property, the
judgment shall provide for the issuance by the clerk of said court
of a writ of possession to the purchaser at the sale or to the
purchaser's assigns no sooner than 20 days following the date on
which the purchaser's deed from the sheriff or constable is filed of
record.
(b) The officer charged with executing the writ shall place
the purchaser or the purchaser's assigns in possession of the
property described in the purchaser's deed without further order
from any court and in the manner provided by the writ, subject to
any notice to vacate that may be required to be given to a tenant
under Section 24.005(b), Property Code.
(c) The writ of possession shall order the officer executing
the writ to:
(1) post a written warning that is at least 8-1/2 by 11
inches on the exterior of the front door of the premises notifying
the occupant that the writ has been issued and that the writ will be
executed on or after a specific date and time stated in the warning
that is not sooner than the 10th day after the date the warning is
posted; and
(2) on execution of the writ:
(A) deliver possession of the premises to the
purchaser or the purchaser's assigns;
(B) instruct the occupants to immediately leave
the premises and, if the occupants fail or refuse to comply,
physically remove them from the premises;
(C) instruct the occupants to remove, or to allow
the purchaser or purchaser's assigns, representatives, or other
persons acting under the officer's supervision to remove, all
personal property from the premises; and
(D) place, or have an authorized person place,
the removed personal property outside the premises at a nearby
location, but not so as to block a public sidewalk, passageway, or
street and not while it is raining, sleeting, or snowing.
(d) The writ of possession shall authorize the officer, at
the officer's discretion, to engage the services of a bonded or
insured warehouseman to remove and store, subject to applicable
law, all or part of the personal property at no cost to the
purchaser, the purchaser's assigns, or the officer executing the
writ. The officer may not require the purchaser or the purchaser's
assigns to store the personal property.
(e) The writ of possession shall contain notice to the
officer that under Section 7.003, Civil Practice and Remedies Code,
the officer is not liable for damages resulting from the execution
of the writ if the officer executes the writ in good faith and with
reasonable diligence.
(f) The warehouseman's lien on stored property, the
officer's duties, and the occupants' rights of redemption as
provided by Section 24.0062, Property Code, are all applicable with
respect to any personal property that is removed under Subsection
(d).
(g) A sheriff or constable may use reasonable force in
executing a writ under this section.
(h) If a taxing unit is a purchaser and is entitled to a writ
of possession in the taxing unit's name:
(1) a bond may not be required of the taxing unit for
issuance or delivery of a writ of possession; and
(2) a fee or court cost may not be charged for issuance
or delivery of a writ of possession.
(i) In this section:
(1) "Premises" means all of the property described in
the purchaser's deed, including the buildings, dwellings, or other
structures located on the property.
(2) "Purchaser" includes a taxing unit to which
property is bid off under Section 34.01(j).
SECTION 25. Subchapter C, Chapter 33, Tax Code, is amended
by adding Section 33.57 to read as follows:
Sec. 33.57. ALTERNATIVE NOTICE OF TAX FORECLOSURE ON
CERTAIN PARCELS OF REAL PROPERTY. (a) In this section,
"appraised value" means the appraised value according to the most
recent appraisal roll approved by the appraisal review board.
(b) This section may be invoked and used by one or more
taxing units if there are delinquent taxes, penalties, interest,
and attorney's fees owing to a taxing unit on a parcel of real
property and:
(1) the total amount of delinquent taxes, penalties,
interest, and attorney's fees owed exceeds the appraised value of
the parcel; or
(2) there are 10 or more years for which delinquent
taxes are owed on the parcel.
(c) One or more taxing units may file a single petition for
foreclosure under this section that includes multiple parcels of
property and multiple owners. Alternatively, separate petitions
may be filed and docketed separately for each parcel of property.
Another taxing unit with a tax claim against the same parcel may
intervene in an action for the purpose of establishing and
foreclosing its tax lien without further notice to a defendant. The
petition must be filed in the county in which the tax was imposed
and is sufficient if it is in substantially the form prescribed by
Section 33.43 and further alleges that:
(1) the amount owed in delinquent taxes, penalties,
interest, and attorney's fees exceeds the appraised value of the
parcel; or
(2) there are 10 or more years for which delinquent
taxes are owed on the parcel.
(d) Simultaneously with the filing of the petition under
this section, a taxing unit shall also file a motion with the court
seeking an order approving notice of the petition to each defendant
by certified mail in lieu of citation and, if the amount of
delinquent taxes, penalties, interest, and attorney's fees alleged
to be owed exceeds the appraised value of the parcel, waiving the
appointment of an attorney ad litem. The motion must be supported
by certified copies of tax records that show the tax years for which
delinquent taxes are owed, the amounts of delinquent taxes,
penalties, interest, and attorney's fees, and, if appropriate, the
appraised value of the parcel.
(e) The court shall approve a motion under Subsection (d) if
the documents in support of the motion show that:
(1) the amount of delinquent taxes, penalties,
interest, and attorney's fees that are owed exceeds the appraised
value of the parcel; or
(2) there are 10 or more years for which delinquent
taxes are owed on the parcel.
(f) Before filing a petition under this section, or as soon
afterwards as practicable, the taxing unit or its attorney shall
determine the address of each owner of a property interest in the
parcel for the purpose of providing notice of the pending petition.
If the title search, the taxing unit's tax records, and the
appraisal district records do not disclose an address of a person
with a property interest, consulting the following sources of
information is to be considered a reasonable effort by the taxing
unit or its attorney to determine the address of a person with a
property interest in the parcel subject to foreclosure:
(1) telephone directories, electronic or otherwise,
that cover:
(A) the area of any last known address for the
person; and
(B) the county in which the parcel is located;
(2) voter registration records in the county in which
the parcel is located; and
(3) where applicable, assumed name records maintained
by the county clerk of the county in which the parcel is located and
corporate records maintained by the secretary of state.
(g) Not later than the 45th day before the date on which a
hearing on the merits on a taxing unit's petition is scheduled, the
taxing unit or its attorney shall send a copy of the petition and a
notice by certified mail to each person whose address is determined
under Subsection (f), informing the person of the pending
foreclosure action and the scheduled hearing. A copy of each notice
shall be filed with the clerk of the court together with an
affidavit by the tax collector or by the taxing unit's attorney
attesting to the fact and date of mailing of the notice.
(h) In addition to the notice required by Subsection (g),
the taxing unit shall provide notice by publication and by posting
to all persons with a property interest in the parcel subject to
foreclosure. The notice shall be published in the English language
once a week for two weeks in a newspaper that is published in the
county in which the parcel is located and that has been in general
circulation for at least one year immediately before the date of the
first publication, with the first publication to be not less than
the 45th day before the date on which the taxing unit's petition is
scheduled to be heard. When returned and filed in the trial court,
an affidavit of the editor or publisher of the newspaper attesting
to the date of publication, together with a printed copy of the
notice as published, is sufficient proof of publication under this
subsection. If a newspaper is not published in the county in which
the parcel is located, publication in an otherwise qualifying
newspaper published in an adjoining county is sufficient. The
maximum fee for publishing the citation shall be the lowest
published word or line rate of that newspaper for classified
advertising. The notice by posting shall be in the English language
and given by posting a copy of the notice at the courthouse door of
the county in which the foreclosure is pending not less than the
45th day before the date on which the taxing unit's petition is
scheduled to be heard. Proof of the posting of the notice shall be
made by affidavit of the attorney for the taxing unit, or of the
person posting it. If the publication of the notice cannot be had
for the maximum fee established in this subsection, and that fact is
supported by the affidavit of the attorney for the taxing unit, the
notice by posting under this subsection is sufficient.
(i) The notice required by Subsections (g) and (h) must
include:
(1) a statement that foreclosure proceedings have been
commenced and the date the petition was filed;
(2) a legal description, tax account number, and, if
known, a street address for the parcel in which the addressee owns a
property interest;
(3) the name of the person to whom the notice is
addressed and the name of each other person who, according to the
title search, has an interest in the parcel in which the addressee
owns a property interest;
(4) the date, time, and place of the scheduled hearing
on the petition;
(5) a statement that the recipient of the notice may
lose whatever property interest the recipient owns in the parcel as
a result of the hearing and any subsequent tax sale;
(6) a statement explaining how a person may contest
the taxing unit's petition as provided by Subsection (j) and that a
person's interest in the parcel may be preserved by paying all
delinquent taxes, penalties, interest, attorney's fees, and court
costs before the date of the scheduled hearing on the petition;
(7) the name, address, and telephone number of the
taxing unit and the taxing unit's attorney of record; and
(8) the name of each other taxing unit that imposes
taxes on the parcel, together with a notice that any taxing unit may
intervene without further notice and set up its claims for
delinquent taxes.
(j) A person claiming a property interest in a parcel
subject to foreclosure may contest a taxing unit's petition by
filing with the clerk of the court a written response to the
petition not later than the seventh day before the date scheduled
for hearing on the petition and specifying in the response any
affirmative defense of the person. A copy of the response must be
served on the taxing unit's attorney of record in the manner
required by Rule 21a, Texas Rules of Civil Procedure. The taxing
unit is entitled on request to a continuance of the hearing if a
written response filed to a notice of the hearing contains an
affirmative defense or requests affirmative relief against the
taxing unit.
(k) Before entry of a judgment under this section, a taxing
unit may remove a parcel erroneously included in the petition and
may take a voluntary nonsuit as to one or more parcels of property
without prejudicing its action against the remaining parcels.
(l) If before the hearing on a taxing unit's petition the
taxing unit discovers a deficiency in the provision of notice under
this section, the taxing unit shall take reasonable steps in good
faith to correct the deficiency before the hearing. A notice
provided by Subsections (g)-(i) is in lieu of citation issued and
served under Rule 117a, Texas Rules of Civil Procedure. Regardless
of the manner in which notice under this section is given, an
attorney ad litem may not be appointed for a person with an interest
in a parcel with delinquent taxes, penalties, interest, and
attorney's fees against the parcel in an amount that exceeds the
parcel's appraised value. To the extent of any additional conflict
between this section and the Texas Rules of Civil Procedure, this
section controls. Except as otherwise provided by this section, a
suit brought under this section is governed generally by the Texas
Rules of Civil Procedure and by Subchapters C and D of this chapter.
(m) A judgment in favor of a taxing unit under this section
must be only for foreclosure of the tax lien against the parcel.
The judgment may not include a personal judgment against any
person.
(n) A person is considered to have been provided sufficient
notice of foreclosure and opportunity to be heard for purposes of a
proceeding under this section if the taxing unit follows the
procedures required by this section for notice by certified mail or
by publication and posting or if one or more of the following apply:
(1) the person had constructive notice of the hearing
on the merits by acquiring an interest in the parcel after the date
of the filing of the taxing unit's petition;
(2) the person appeared at the hearing on the taxing
unit's petition or filed a responsive pleading or other
communication with the clerk of the court before the date of the
hearing; or
(3) before the hearing on the taxing unit's petition,
the person had actual notice of the hearing.
SECTION 26. Section 41.097(a), Education Code, is amended
to read as follows:
(a) The total amount required under Section 41.093 for a
district to purchase attendance credits under this subchapter for
any school year is reduced by an amount equal to the product of the
district's total costs under Section 6.06, Tax Code, for the
[central] appraisal district or districts in which it participates
multiplied by a percentage that is computed by dividing the total
amount required under Section 41.093 by the total amount of taxes
imposed in the district for that year less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 27. Section 41.210(b), Education Code, is amended
to read as follows:
(b) As soon as practicable after the detachment and
annexation of property, the chief appraiser of the appraisal
district in which the property is located [for the school district
from which the property is detached] shall send a written notice of
the detachment and annexation to the owner of any property taxable
in a different school district as a result of the detachment and
annexation. The notice must include the name of the school district
by which the property is taxable after the detachment and
annexation.
SECTION 28. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06 or
33.061, Tax Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 29. Section 12.002(e), Property Code, is amended to
read as follows:
(e) A person may not file for record or have recorded in the
county clerk's office a plat or replat of a subdivision of real
property unless the plat or replat has attached to it an original
tax certificate from each taxing unit with jurisdiction of the real
property indicating that no delinquent ad valorem taxes are owed on
the real property. This subsection does not apply if:
(1) more than one person acquired the real property
from a decedent under a will or by inheritance and those persons
owning an undivided interest in the property obtained approval to
subdivide the property to provide each person with a divided
interest and a separate title to the property; or
(2) a taxing unit acquired the real property for
public use through eminent domain proceedings or voluntary sale.
SECTION 30. Subchapter B, Chapter 21, Property Code, is
amended by adding Section 21.0211 to read as follows:
Sec. 21.0211. PAYMENT OF AD VALOREM TAXES. (a) A court may
not authorize withdrawal of any money deposited under Section
21.021 unless the petitioner for the money files with the court:
(1) a tax certificate issued under Section 31.08, Tax
Code, by the tax collector for each taxing unit that imposes ad
valorem taxes on the condemned property showing that there are no
delinquent taxes, penalties, interest, or costs owing on the
condemned property or on any larger tract of which the condemned
property forms a part; and
(2) in the case of a whole taking that occurs after the
date the ad valorem tax bill for taxes imposed by a taxing unit on
the property is sent, a tax receipt issued under Section 31.075, Tax
Code, by the tax collector of the taxing unit that imposes ad
valorem taxes showing that the taxes on the condemned property for
the current tax year, prorated under Section 26.11, Tax Code, have
been paid.
(b) For purposes of Subsection (a)(2), a "case of a whole
taking" means a case in which the location, size, and boundaries of
the property assessed for ad valorem taxes are identical to that of
the condemned property.
SECTION 31. Section 17.091(a), Civil Practice and Remedies
Code, is amended to read as follows:
(a) In a suit to collect delinquent property taxes by the
state or a subdivision of the state in which a person who is a
defendant is a nonresident, the secretary of state is an agent for
service of process on that defendant if the defendant owns, has, or
claims an interest in or a lien against property in this state that
is the subject of the suit.
SECTION 32. Section 31.073, Tax Code, as amended by this
Act, applies only to payments of taxes, penalties, or interest that
are made on or after the effective date of this Act.
SECTION 33. Section 32.05, Tax Code, as amended by this Act,
applies to any lien, regardless of the date on which it arose, and
to any cause of action pending on the effective date of this Act or
brought after that date.
SECTION 34. Section 33.011, Tax Code, as amended by this
Act, applies only to a request for a waiver of penalty or interest
made on or after the effective date of this Act. A request for a
waiver made before the effective date of this Act is governed by the
law as it existed immediately before the effective date of this Act,
and the former law is continued in effect for that purpose.
SECTION 35. Section 33.02, Tax Code, as amended by this Act,
applies to an installment agreement entered before, on, or after
the effective date of this Act.
SECTION 36. Section 33.22, Tax Code, as amended by this Act,
applies only to a tax warrant proceeding pending on the effective
date of this Act or brought after that date.
SECTION 37. Section 33.23, Tax Code, as amended by this Act,
applies only to a tax warrant issued on or after the effective date
of this Act. A tax warrant issued before the effective date of this
Act is governed by the law as it existed immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 38. Section 33.25, Tax Code, as amended by this Act,
applies only to a tax warrant proceeding in which the application
for tax warrant was filed on or after the effective date of this
Act. A tax warrant proceeding commenced by application before the
effective date of this Act is governed by the law as it existed
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 39. Section 33.48, Tax Code, as amended by this Act,
applies only to a cause of action pending on the effective date of
this Act or brought after that date.
SECTION 40. Section 33.51, Tax Code, as amended by this Act,
applies to a writ of possession that is based on a judgment entered
before, on, or after the effective date of this Act.
SECTION 41. Section 33.57, Tax Code, as added by this Act,
applies only to a cause of action pending on the effective date of
this Act or brought after the effective date of this Act.
SECTION 42. Section 12.002(e), Property Code, as amended by
this Act, applies only to a plat or replat of a subdivision that is
filed for recordation on or after the effective date of this Act. A
plat or replat of a subdivision that was filed for recordation
before the effective date of this Act is governed by the law in
effect immediately before the effective date of this Act, and the
former law is continued in effect for that purpose.
SECTION 43. Section 21.0211, Property Code, as added by
this Act, applies only to an eminent domain proceeding that is
commenced on or after the effective date of this Act. An eminent
domain proceeding commenced before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 44. Section 17.091, Civil Practice and Remedies
Code, as amended by this Act, applies only to a cause of action
pending on the effective date of this Act or brought after the
effective date of this Act.
SECTION 45. Section 11.43(m), Tax Code, as added by this
Act, applies only to eligibility for an exemption from ad valorem
taxation under Section 11.13(c) or (d), Tax Code, for an individual
65 years of age or older for a tax year beginning on or after January
1, 2006.
SECTION 46. The following statutes are repealed:
(1) Section 13.007, Education Code;
(2) Sections 6.02(b)-(g), Tax Code;
(3) Section 6.025, Tax Code; and
(4) Section 6.03(m), Tax Code.
SECTION 47. (a) The changes in law made by this Act
relating to the appraisal of property for ad valorem tax purposes
apply only to the appraisal of property for a tax year that begins
on or after January 1, 2006.
(b) The term of each appraisal district director in an
appraisal district described by Section 6.025, Tax Code, as that
law existed immediately before September 1, 2005, serving a
staggered term that but for this subsection would expire after
January 1, 2006, expires on January 1, 2006. The appraisal district
board of directors shall fill the vacant directorships as soon as
practicable after January 1, 2006, as provided by Section 6.03(l),
Tax Code.
(c) Notwithstanding Section 6.03, Tax Code, a taxing unit is
entitled to vote in 2005 for appraisal district directors for terms
beginning on January 1, 2006, in each appraisal district in which
the taxing unit will participate in 2006 under the law as amended by
this Act. The voting entitlement of each taxing unit entitled to
vote for directors in 2005 is determined for each appraisal
district by dividing the total dollar amount of property taxes
imposed by the taxing unit for the 2004 tax year in the county for
which the appraisal district is established by the sum of the total
dollar amount of property taxes imposed in that county for that year
by each taxing unit that is entitled to vote for directors of that
appraisal district under this subsection in 2005, by multiplying
the quotient by 1,000, and by rounding the product to the nearest
whole number. That number is multiplied by the number of
directorships to be filled. A taxing unit located in two or more
counties is entitled to vote in the appraisal district established
for each county in which it is located, but only the taxes imposed
in 2004 in the county for which a district is established are used
to calculate the 2005 voting entitlement in that district.
(d) Notwithstanding Section 6.06, Tax Code, not later than
September 15, 2005, the chief appraiser of each appraisal district
shall revise the proposed 2006 budget for the district, if
necessary, to account for the changes in law made by this Act.
(e) Notwithstanding Section 6.06, Tax Code, for the 2006 tax
year, each taxing unit participating in an appraisal district in
2006 is allocated a portion of the amount of the 2006 budget for the
district equal to the proportion that the total dollar amount of
property taxes imposed in the county for which the district is
established by the unit for the 2005 tax year bears to the sum of the
total dollar amount of property taxes imposed in the county by each
participating unit for that year. If a taxing unit participates in
two or more appraisal districts in 2006, only the 2005 taxes imposed
in the county for which a district is established are used to
calculate the unit's cost allocations for 2006 in that district.
SECTION 48. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2005.
(b) The following sections of this Act take effect January
1, 2006:
(1) SECTION 3, amending Section 6.02(a), Tax Code;
(2) SECTION 26, amending Section 41.097(a), Education
Code;
(3) SECTION 27, amending Section 41.210(b), Education
Code; and
(4) SECTION 46, repealing Section 13.007, Education
Code, and Sections 6.02(b)-(g), 6.025, and 6.03(m), Tax Code.
* * * * *