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AN ACT
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relating to the effect of a tax certificate accompanying a transfer |
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of certain property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.08, Tax Code, is amended by amending |
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Subsection (b) and adding Subsection (d) to read as follows: |
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(b) Except as provided by Subsections [Subsection] (c) and |
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(d) [of this section], if a person transfers property accompanied |
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by a tax certificate that erroneously indicates that no delinquent |
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taxes, penalties, or interest are due a taxing unit on the property |
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or that fails to include property because of its omission from an |
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appraisal roll as described under Section 25.21, the taxing unit's |
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tax lien on the property, including, if applicable, the tax lien |
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securing the payment of any delinquent taxes, penalties, or |
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interest that are subsequently determined to be due the taxing unit |
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on the property because a residence homestead exemption was |
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erroneously allowed for the property and was subsequently canceled, |
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is extinguished and the purchaser of the property is absolved of |
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liability to the taxing unit for delinquent taxes, penalties, or |
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interest on the property or for taxes based on omitted property. |
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The person who was liable for the tax for the year the tax was |
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imposed or the property was omitted remains personally liable for |
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the tax and for any penalties or interest. |
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(d) A tax certificate that accompanies a transfer of |
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property and erroneously indicates that no delinquent taxes, |
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penalties, or interest are due a taxing unit on the property because |
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a residence homestead exemption was erroneously allowed for the |
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property and was subsequently canceled does not extinguish the tax |
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lien securing the payment of any delinquent taxes, penalties, or |
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interest that are subsequently determined to be due the taxing unit |
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on the property if the chief appraiser or the collector for a taxing |
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unit determines that the transfer of the property occurred between: |
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(1) two individuals who are related within the first |
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degree by consanguinity or affinity, as determined under Chapter |
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573, Government Code; |
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(2) an employer and an employee; |
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(3) a parent company and a subsidiary of that parent |
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company; or |
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(4) a trust and a beneficiary of that trust. |
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SECTION 2. The change in law made by this Act applies only |
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to a tax certificate issued on or after the effective date of this |
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Act. A tax certificate issued before the effective date of this Act |
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is covered by the law in effect on the date of issuance, and the |
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former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2173 passed the Senate on |
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May 1, 2025, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2173 passed the House on |
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May 15, 2025, by the following vote: Yeas 140, Nays 0, three |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |