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A BILL TO BE ENTITLED
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AN ACT
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relating to the priority of transferred tax liens. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsections (b) and (b-1), Section 32.05, Tax |
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Code, are amended to read as follows: |
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(b) Except as provided by Subsections (b-1) and |
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[subsection] (c)(1), a tax lien provided by this chapter takes |
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priority over: |
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(1) the claim of any creditor of a person whose |
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property is encumbered by the lien; |
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(2) the claim of any holder of a lien on property |
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encumbered by the tax lien, including any lien held by a property |
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owners' association, homeowners' association, condominium unit |
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owners' association, or council of owners of a condominium regime |
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under a restrictive covenant, condominium declaration, master |
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deed, or other similar instrument that secures regular or special |
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maintenance assessments, fees, dues, interest, fines, costs, |
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attorney's fees, or other monetary charges against the property; |
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and |
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(3) any right of remainder, right or possibility of |
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reverter, or other future interest in, or encumbrance against, the |
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property, whether vested or contingent. |
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(b-1) The priority given to a tax lien by Subsection (b) |
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prevails, regardless of whether the debt, lien, future interest, or |
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other encumbrance existed before attachment of the tax lien, unless |
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the tax lien is transferred to a transferee. Once a tax lien is |
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transferred, the tax lien is inferior to a debt, lien, future |
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interest, or other encumbrance that existed before the attachment |
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of the tax lien. |
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SECTION 2. This Act takes effect September 1, 2009. |