83R5350 TJB-F
  By: Hegar S.B. No. 586
  relating to the priority of ad valorem tax liens on personal
  property subject to a purchase money security interest.
         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;
               (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.