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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of delinquent tax receivables by certain local |
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governments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 8, Local Government Code, is |
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amended by adding Chapter 274 to read as follows: |
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CHAPTER 274. SALE OF DELINQUENT TAX RECEIVABLES |
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Sec. 274.001. DEFINITIONS. In this chapter: |
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(1) "Delinquent tax receivable" means a right to |
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receive the revenue from: |
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(A) a delinquent ad valorem tax imposed by a |
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school district for maintenance and operations purposes for a |
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specific tax year that remains unpaid, including any penalty and |
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interest that accrues as a result of the delinquency; |
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(B) a delinquent ad valorem tax imposed by a |
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county or municipality for a specific tax year that remains unpaid, |
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including any penalty and interest that accrues as a result of the |
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delinquency; or |
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(C) a delinquent assessment or other charge |
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imposed by a county or municipality secured by a lien on real |
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property that remains unpaid, including any penalty and interest |
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that accrues as a result of the delinquency. |
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(2) "Local government" means a county, municipality, |
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or school district. |
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Sec. 274.002. AUTHORITY TO SELL DELINQUENT TAX RECEIVABLE. |
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A local government may sell a delinquent tax receivable at any time. |
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Sec. 274.003. PROCEDURE FOR SALE OF DELINQUENT TAX |
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RECEIVABLE. (a) A local government may sell a delinquent tax |
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receivable through a negotiated sale or competitive bidding. The |
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sale must be on the terms the governing body of the local government |
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determines to be in the best interest of the local government. |
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(b) The sale of a delinquent tax receivable must be made |
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pursuant to a purchase and sale agreement that transfers to the |
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purchaser the right to receive the delinquent tax revenue and any |
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penalty and interest that accrues after the date of the sale. |
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Sec. 274.004. AMOUNT OF DELINQUENT TAX RECEIVABLE. The |
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amount of a delinquent tax receivable sold under this chapter must |
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include: |
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(1) the original amount of the delinquent ad valorem |
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tax and the amount of any penalty and interest that accrued and |
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remains unpaid on the date of the sale; or |
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(2) the original amount of a delinquent assessment or |
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other charge other than a delinquent ad valorem tax and the amount |
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of any penalty and interest that accrued and remains unpaid on the |
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date of the sale. |
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Sec. 274.005. LIEN NOT TRANSFERRED. The sale of a |
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delinquent tax receivable does not transfer to the purchaser a lien |
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or the right to foreclose a lien on property associated with the |
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delinquent tax receivable. |
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Sec. 274.006. COLLECTION BY LOCAL GOVERNMENT. The sale of a |
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delinquent tax receivable does not alter or affect the duty or |
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authority of a local government to collect a delinquent tax |
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receivable. |
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Sec. 274.007. PROHIBITED ACTIVITY. A purchaser of a |
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delinquent tax receivable may not engage, directly or indirectly, |
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in the collection of a delinquent tax receivable. |
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SECTION 2. 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, 2011. |