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A BILL TO BE ENTITLED
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AN ACT
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relating to forfeiture of remedy for nonpayment of ad valorem |
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taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.08, Tax Code, is amended by amending |
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Subsection (d) and adding Subsections (e) and (f) to read as |
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follows: |
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(d) After filing an oath of inability to pay the taxes at |
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issue, a party may be excused from the requirement of prepayment of |
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tax as a prerequisite to appeal if the court, after notice and |
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hearing, finds that such prepayment would constitute an |
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unreasonable restraint on the party's right of access to the |
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courts. On the motion of a party and after the movant's compliance |
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with Subsection (e), the court shall hold a hearing to review and |
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determine compliance with this section, and the reviewing court may |
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set such terms and conditions on any grant of relief as may be |
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reasonably required by the circumstances. If the court determines |
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that the property owner has not substantially complied with this |
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section, the court shall dismiss the pending action. If the court |
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determines that the property owner has substantially but not fully |
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complied with this section, the court shall dismiss the pending |
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action unless the property owner fully complies with the court's |
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determination within 30 days of the determination. |
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(e) Not later than the 45th day before the date of a hearing |
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to review and determine compliance with this section, the movant |
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must mail notice of the hearing by certified mail, return receipt |
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requested, to the collector for each taxing unit that imposes taxes |
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on the property. |
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(f) Regardless of whether the collector for the taxing unit |
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receives a notice under Subsection (e), a taxing unit that imposes |
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taxes on the property may intervene in an appeal under this chapter |
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and participate in the proceedings for the limited purpose of |
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determining whether the property owner has complied with this |
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section. The taxing unit is entitled to process for witnesses and |
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evidence and to be heard by the court. |
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SECTION 2. (a) Except as provided by Subsection (b) of this |
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section: |
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(1) the change in law made by this Act applies only to |
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an appeal under Chapter 42, Tax Code, that is filed on or after the |
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effective date of this Act; and |
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(2) an appeal under Chapter 42, Tax Code, that was |
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filed before the effective date of this Act is governed by the law |
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in effect on the date the appeal was filed, and the former law is |
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continued in effect for that purpose. |
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(b) Subsection (f), Section 42.08, Tax Code, as added by |
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this Act, applies to an appeal under Chapter 42, Tax Code, that is: |
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(1) filed on or after the effective date of this Act; |
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or |
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(2) pending on the effective date of this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |