Relating to the disposition of excess proceeds of a tax sale of real property or foreclosure of a tax lien on real property.
Impact
By amending Section 34.04 of the Tax Code, the bill introduces new stipulations regarding the order of payments from excess proceeds and establishes clear conditions under which former owners may establish their claims. The inclusion of specific priorities—such as payments to tax sale purchasers and lienholders—is designed to create a structured approach that protects the interests of various stakeholders involved in the tax sale process. This structured approach may facilitate smoother transactions and reduce litigation stemming from tax sales.
Summary
House Bill 406 addresses the procedures and priorities for the distribution of excess proceeds from the sale of real property at tax sales or foreclosure of tax liens. The bill modifies existing tax code provisions to establish a clearer framework for who may claim these proceeds and the process required for such claims. Importantly, the bill seeks to streamline the process by ensuring that former owners have defined rights to the excess proceeds and that those who claim these proceeds must follow specific legal procedures to do so, thereby minimizing disputes over claims.
Contention
Notable points of contention surrounding HB 406 likely center on the rights of former owners and the limitations placed on the ability of assignees or transferees to claim excess proceeds. Some may argue that the new provisions limit the rights of those who acquire property after a tax sale and may inadvertently favor tax collectors and purchasers over former property owners. Additionally, the strict documentation requirements for claims could pose challenges for claimants who may not have the necessary records, potentially leading to further debate regarding consumer protections and equitable access to excess proceeds.
Relating to the authority of a taxing unit to sell certain seized or foreclosed property to an owner of an abutting property without conducting a public sale.
Relating to the authority of a taxing unit to sell certain seized or foreclosed property to an owner of an abutting property without conducting a public sale.
Relating to the right of the clerk of a court to deduct from the amount of the excess proceeds from an ad valorem tax sale of property the cost of postage for sending to the former owner of the property a notice of the owner's right to claim the proceeds.
Relating to civil asset forfeiture proceedings, to the seizure and forfeiture of certain property, and to the reporting and disposition of proceeds and property from civil asset forfeiture.
Allows the city of Providence to impose an additional conveyance tax of three quarters of one percent (0.75%) on sale of any real property in excess of one million dollars ($1,000,000).