| 1 | 1 | | By: Gonzales H.B. No. 4069 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the priority of transferred tax liens. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Sections 32.05(b) and 32.05(b-1), Tax Code, are |
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| 9 | 9 | | amended to read as follows: |
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| 10 | 10 | | (b) Except as provided by Subsection (c)(1) and Subsection |
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| 11 | 11 | | (b-1), a tax lien provided by this chapter takes priority over: |
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| 12 | 12 | | (1) the claim of any creditor of a person whose |
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| 13 | 13 | | property is encumbered by the lien; |
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| 14 | 14 | | (2) the claim of any holder of a lien on property |
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| 15 | 15 | | encumbered by the tax lien, including any lien held by a property |
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| 16 | 16 | | owners' association, homeowners' association, condominium unit |
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| 17 | 17 | | owners' association, or council of owners of a condominium regime |
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| 18 | 18 | | under a restrictive covenant, condominium declaration, master |
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| 19 | 19 | | deed, or other similar instrument that secures regular or special |
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| 20 | 20 | | maintenance assessments, fees, dues, interest, fines, costs, |
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| 21 | 21 | | attorney's fees, or other monetary charges against the property; |
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| 22 | 22 | | and |
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| 23 | 23 | | (3) any right of remainder, right or possibility of |
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| 24 | 24 | | reverter, or other future interest in, or encumbrance against, the |
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| 25 | 25 | | property, whether vested or contingent. |
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| 26 | 26 | | (b-1) The priority given to a tax lien by Subsection (b) |
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| 27 | 27 | | prevails, regardless of whether the debt, lien, future interest, or |
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| 28 | 28 | | other encumbrance existed before attachment of the tax lien, unless |
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| 29 | 29 | | the tax lien is transferred to a transferee. Once a tax lien is |
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| 30 | 30 | | transferred, the tax lien is inferior to a debt, lien, future |
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| 31 | 31 | | interest or other encumbrance that existed before the attachment of |
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| 32 | 32 | | the tax lien. |
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| 33 | 33 | | SECTION 2. Chapter 32, Tax Code, is amended by adding |
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| 34 | 34 | | Section 32.066 as follows: |
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| 35 | 35 | | Sec. 32.066. WAIVER. A provision of a contract, agreement, |
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| 36 | 36 | | or other document that purports to waive a right of a property owner |
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| 37 | 37 | | or exempt a transferee, creditor, holder of a lien, mortgage |
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| 38 | 38 | | servicer, mortgagee, trustee, substitute trustee, appraisal |
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| 39 | 39 | | district, taxing entity or other government official from a duty |
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| 40 | 40 | | under Sections 32.06 and 32.065 or rules enacted under those |
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| 41 | 41 | | sections is void. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2009. |
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