Texas House Bill HB1465

Texas 2009 - 81st Regular

• Out of House Committee: 4/14/09
• Voted on by House: 4/22/09
• Out of Senate Committee: 4/30/09
• Voted on by Senate: 5/12/09
• Governor Action: 5/23/09
• Enrolled: 5/14/09
• Passed: 5/23/09

Caption

Relating to the joinder of a tax lien transferee in a suit to collect a delinquent ad valorem tax.

Impact

The bill introduces significant changes to how tax liens can be enforced, particularly regarding the rights of transferees. By allowing transferees to intervene in foreclosure suits, the legislation aims to streamline the process and clarify the rights owed to transferees. This could potentially hasten the collection of delinquent taxes and enhance revenue recovery for local governments, as the transferees would be able to act in a more direct capacity against property owners who have failed to pay their taxes.

Summary

House Bill 1465 aims to amend the Tax Code of Texas, focusing on the joinder of a tax lien transferee in suits to collect delinquent ad valorem taxes. The bill stipulates that when a taxing unit initiates foreclosure proceedings under existing laws, it must also join any transferee of the tax lien associated with the property. This requirement ensures that all parties with a financial interest in the tax lien are included in the legal proceedings, allowing the transferee to file claims for amounts owed against the property as secured by the tax lien.

Contention

While the bill's objective is to improve tax collection efficiency, it could also raise concerns among property owners regarding their rights in foreclosure cases. The inclusion of tax lien transferees may lead to more aggressive collection practices, putting additional pressure on individuals who may already be struggling. Critics may argue that the bill favors the financial interests of tax lien investors at the expense of property owners, potentially leading to increased foreclosures and loss of property among less affluent residents.