| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the priority of ad valorem tax liens on personal |
|
|
property subject to a purchase money security interest. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 32.05, Tax Code, is amended by amending |
|
|
Subsection (b) and adding Subsection (b-2) to read as follows: |
|
|
(b) Except as provided by Subsection (c)(1), a tax lien |
|
|
provided by this chapter takes priority over: |
|
|
(1) the claim of any creditor of a person whose |
|
|
property is encumbered by the lien, except as provided by |
|
|
Subdivision (4); |
|
|
(2) the claim of any holder of a lien on property |
|
|
encumbered by the tax lien, including any lien held by a property |
|
|
owners' association, homeowners' association, condominium unit |
|
|
owners' association, or council of owners of a condominium regime |
|
|
under a restrictive covenant, condominium declaration, master |
|
|
deed, or other similar instrument that secures regular or special |
|
|
maintenance assessments, fees, dues, interest, fines, costs, |
|
|
attorney's fees, or other monetary charges against the property; |
|
|
[and] |
|
|
(3) any right of remainder, right or possibility of |
|
|
reverter, or other future interest in, or encumbrance against, the |
|
|
property, whether vested or contingent; and |
|
|
(4) the claim of any creditor that is the holder of a |
|
|
purchase money security interest on personal property encumbered by |
|
|
the tax lien to the extent provided by Subsection (b-2). |
|
|
(b-2) The priority given to a tax lien by Subsection (b)(4) |
|
|
prevails only to the extent of the amount of taxes, and of any |
|
|
penalties or interest on those taxes, that would have been imposed |
|
|
on the personal property had the property been taxed separately on |
|
|
the date the tax lien attached. In determining the amount of taxes |
|
|
that would have been assessed under this subsection, the tax rate is |
|
|
the applicable rate adopted for the tax year in which the lien |
|
|
attaches, and the taxable value assigned to the property is the |
|
|
price of the property agreed to by the delinquent taxpayer and the |
|
|
creditor at the time the purchase money security interest attached. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to a tax lien on personal property for taxes imposed in 2013 and |
|
|
subsequent tax years. A tax lien on personal property for taxes |
|
|
imposed in a tax year before the 2013 tax year is governed by the law |
|
|
in effect on the date the tax lien attached, and that law is |
|
|
continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect January 1, 2014. |