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AN ACT
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relating to the resale of property purchased by a taxing unit at a |
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tax sale. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 33.52(d), Tax Code, is amended to read as |
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follows: |
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(d) Except as provided by Section 34.05(k), a [A] taxing |
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unit's claim for taxes that become delinquent after the date of the |
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judgment is not affected by the entry of the judgment or a tax sale |
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conducted under that judgment. Those taxes may be collected by any |
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remedy provided by this title. |
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SECTION 2. Section 34.05, Tax Code, is amended by adding |
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Subsections (j), (k), and (l) to read as follows: |
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(j) In lieu of a sale pursuant to Subsections (c) and (d), |
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the taxing unit that purchased the property may sell the property at |
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a private sale for an amount equal to or greater than its market |
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value, as shown by the most recent certified appraisal roll, if: |
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(1) the sum of the amount of the judgment plus |
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post-judgment taxes, penalties, and interest owing against the |
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property exceeds the market value; and |
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(2) each taxing unit entitled to receive proceeds of |
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the sale consents to the sale for that amount. |
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(k) A sale under Subsection (j) discharges and extinguishes |
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all liens foreclosed by the judgment and, with the exception of the |
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prorated tax for the current year that is assessed under Section |
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26.10, the liens for post-judgment taxes that accrued from the date |
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of judgment until the date the taxing unit purchased the property. |
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The presiding officer of a taxing unit selling real property under |
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Subsection (j) shall execute a deed to the property conveying to the |
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purchaser the right, title, and interest acquired or held by each |
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taxing unit that was a party to the judgment foreclosing tax liens |
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on the property. The conveyance is subject to any remaining right of |
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redemption at the time of the sale and to the purchaser's obligation |
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to pay the prorated taxes for the current year as provided by |
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Section 26.10. The deed must recite that the liens foreclosed by the |
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judgment and the post-judgment tax liens are discharged and |
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extinguished by virtue of the conveyance. |
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(l) A taxing unit that does not consent to a sale under |
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Subsection (j) is liable to the taxing unit that purchased the |
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property for a pro rata share of the costs incurred by the |
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purchasing unit in maintaining the property, including the costs of |
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preventing the property from becoming a public nuisance, a danger |
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to the public, or a threat to the public health. The nonconsenting |
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unit's share of the costs described by this subsection is |
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calculated from the date the unit fails to consent to the sale and |
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is equal to the percentage of the proceeds from a sale of the |
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property to which the nonconsenting unit would be entitled |
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multiplied by the costs incurred by the purchasing unit to maintain |
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the property. |
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SECTION 3. The change in law made by this Act applies to |
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real property sold to a taxing unit that is a party to a judgment to |
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foreclose a tax lien regardless of whether the judgment was entered |
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before, on, or after the effective date of this Act. |
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SECTION 4. 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. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1118 was passed by the House on April |
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19, 2011, by the following vote: Yeas 143, Nays 1, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1118 was passed by the Senate on May |
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25, 2011, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |