| 1 | 1 | | 2009S0682-1 03/11/09 |
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| 2 | 2 | | By: Patrick S.B. No. 2147 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the priority of transferred tax liens. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subsections (b) and (b-1), Section 32.05, Tax |
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| 10 | 10 | | Code, are amended to read as follows: |
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| 11 | 11 | | (b) Except as provided by Subsections (b-1) and |
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| 12 | 12 | | [subsection] (c)(1), a tax lien provided by this chapter takes |
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| 13 | 13 | | priority over: |
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| 14 | 14 | | (1) the claim of any creditor of a person whose |
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| 15 | 15 | | property is encumbered by the lien; |
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| 16 | 16 | | (2) the claim of any holder of a lien on property |
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| 17 | 17 | | encumbered by the tax lien, including any lien held by a property |
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| 18 | 18 | | owners' association, homeowners' association, condominium unit |
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| 19 | 19 | | owners' association, or council of owners of a condominium regime |
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| 20 | 20 | | under a restrictive covenant, condominium declaration, master |
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| 21 | 21 | | deed, or other similar instrument that secures regular or special |
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| 22 | 22 | | maintenance assessments, fees, dues, interest, fines, costs, |
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| 23 | 23 | | attorney's fees, or other monetary charges against the property; |
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| 24 | 24 | | and |
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| 25 | 25 | | (3) any right of remainder, right or possibility of |
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| 26 | 26 | | reverter, or other future interest in, or encumbrance against, the |
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| 27 | 27 | | property, whether vested or contingent. |
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| 28 | 28 | | (b-1) The priority given to a tax lien by Subsection (b) |
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| 29 | 29 | | prevails, regardless of whether the debt, lien, future interest, or |
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| 30 | 30 | | other encumbrance existed before attachment of the tax lien, unless |
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| 31 | 31 | | the tax lien is transferred to a transferee. Once a tax lien is |
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| 32 | 32 | | transferred, the tax lien is inferior to a debt, lien, future |
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| 33 | 33 | | interest, or other encumbrance that existed before the attachment |
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| 34 | 34 | | of the tax lien. |
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| 35 | 35 | | SECTION 2. This Act takes effect September 1, 2009. |
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