| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1404 by Dutton (Relating to sale of certain abandoned real property seized for the payment of delinquent ad valorem taxes.), As Introduced |
The bill would add Section 33.931 to the Tax Code to require a city or county to provide a new notice to certain property owners before abandoned real property is offered for a delinquent property tax foreclosure sale.
The bill would require the taxing unit to send a notice to each owner of real property that is contiguous to the abandoned property informing those owners of their right to purchase the property for the total amount owing on the abandoned property. To qualify to purchase the property, an owner would have to demonstrate that he or she had substantially maintained the abandoned property for at least one year before the property was seized by the taxing unit.
The bill would take effect September 1, 2007.
Because the state is constitutionally prohibited from imposing a state property tax, there would be no direct fiscal impact on the state.
No significant fiscal implication to units of local government is anticipated.
Passage of this bill would require cities and counties to provide a written notice to certain property owners not currently required under existing law. There could be some additional administrative and delivery costs to cities and counties that foreclose on abandoned property.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, CT
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