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A BILL TO BE ENTITLED
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AN ACT
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relating to the priority of ad valorem tax liens and certain |
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security interests. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 32.05(b) and (c), Tax Code, are amended |
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to read as follows: |
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(b) Except as provided by Subsection (c)(1) or (4), a tax |
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lien provided by this chapter takes 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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(c) A tax lien provided by this chapter is inferior to: |
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(1) a claim for any survivor's allowance, funeral |
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expenses, or expenses of the last illness of a decedent made against |
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the estate of a decedent as provided by law; |
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(2) except as provided by Subsection (b)(2), a |
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recorded restrictive covenant that runs with the land and was |
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recorded before January 1 of the year the tax lien arose; [or] |
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(3) a valid easement of record recorded before January |
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1 of the year the tax lien arose; or |
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(4) a perfected purchase-money security interest, as |
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described by Section 9.103, Business & Commerce Code. |
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SECTION 2. The change in law made by this Act applies only |
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to a purchase-money security interest that attaches on or after the |
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effective date of this Act. A purchase-money security interest |
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that attaches before the effective date of this Act is governed by |
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the law in effect on the date the security interest attached, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |