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