Texas Senate Bill SB2201

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/14/09

Caption

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

Impact

The implications of SB2201 are significant, particularly for the process of tax lien foreclosure. The bill allows tax lien transferees to file claims and seek foreclosure even if the underlying original loan secured by the lien is not delinquent. This change aims to facilitate the recovery of debts for transferees and might encourage greater participation in the tax lien market. Moreover, the bill obligates taxing units to transfer liens to transferees who settle outstanding amounts, potentially expediting the collection process and altering how outstanding tax debts are managed.

Summary

Senate Bill 2201 addresses the joinder of a tax lien transferee in civil suits for the collection of delinquent ad valorem taxes. This legislation amends existing tax code provisions to clarify and streamline processes involved when a tax lien is transferred to another party. Specifically, it requires that when a taxing unit initiates foreclosure proceedings for delinquent taxes, it must also join any transferee of the tax lien in the lawsuit. This ensures that all parties involved in the lien have the opportunity to seek recovery of amounts owed.

Contention

Dialogue around SB2201 may involve varying perspectives regarding the balance between the rights of property owners and the claims of lien holders. Proponents of the bill may argue that it provides clarity and fairness in the tax lien process, allowing for more efficient recovery of taxes. However, opponents could raise concerns about the potential for abuse, where property owners may face greater pressure from multiple claimants in foreclosure situations. This legislative change could lead to increased litigation or disputes over the ownership and recovery of tax liens.