81R4557 JE-D
By: Rose H.B. No. 1202
A BILL TO BE ENTITLED
AN ACT
relating to forfeiture of remedy for nonpayment of ad valorem
taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.08, Tax Code, is amended by amending
Subsection (d) and adding Subsections (e) and (f) to read as
follows:
(d) After filing an oath of inability to pay the taxes at
issue, a party may be excused from the requirement of prepayment of
tax as a prerequisite to appeal if the court, after notice and
hearing, finds that such prepayment would constitute an
unreasonable restraint on the party's right of access to the
courts. On the motion of a party and after the movant's compliance
with Subsection (e), the court shall hold a hearing to review and
determine compliance with this section, and the reviewing court may
set such terms and conditions on any grant of relief as may be
reasonably required by the circumstances. If the court determines
that the property owner has not substantially complied with this
section, the court shall dismiss the pending action. If the court
determines that the property owner has substantially but not fully
complied with this section, the court shall dismiss the pending
action unless the property owner fully complies with the court's
determination within 30 days of the determination.
(e) Not later than the 45th day before the date of a hearing
to review and determine compliance with this section, the movant
must mail notice of the hearing by certified mail, return receipt
requested, to the collector for each taxing unit that imposes taxes
on the property.
(f) Regardless of whether the collector for the taxing unit
receives a notice under Subsection (e), a taxing unit that imposes
taxes on the property may intervene in an appeal under this chapter
and participate in the proceedings for the limited purpose of
determining whether the property owner has complied with this
section. The taxing unit is entitled to process for witnesses and
evidence and to be heard by the court.
SECTION 2. (a) Except as provided by Subsection (b) of this
section:
(1) the change in law made by this Act applies only to
an appeal under Chapter 42, Tax Code, that is filed on or after the
effective date of this Act; and
(2) an appeal under Chapter 42, Tax Code, that was
filed before the effective date of this Act is governed by the law
in effect on the date the appeal was filed, and the former law is
continued in effect for that purpose.
(b) Section 42.08(f), Tax Code, as added by this Act,
applies to an appeal under Chapter 42, Tax Code, that is:
(1) filed on or after the effective date of this Act;
or
(2) pending on the effective date of this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.