By: Ritter, Deshotel (Senate Sponsor - Huffman) H.B. No. 1118
(In the Senate - Received from the House April 20, 2011;
April 26, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 19, 2011, reported favorably by
the following vote: Yeas 5, Nays 0; May 19, 2011, sent to
printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the resale of property purchased by a taxing unit at a
tax sale.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.52(d), Tax Code, is amended to read as
follows:
(d) Except as provided by Section 34.05(k), a [A] taxing
unit's claim for taxes that become delinquent after the date of the
judgment is not affected by the entry of the judgment or a tax sale
conducted under that judgment. Those taxes may be collected by any
remedy provided by this title.
SECTION 2. Section 34.05, Tax Code, is amended by adding
Subsections (j), (k), and (l) to read as follows:
(j) In lieu of a sale pursuant to Subsections (c) and (d),
the taxing unit that purchased the property may sell the property at
a private sale for an amount equal to or greater than its market
value, as shown by the most recent certified appraisal roll, if:
(1) the sum of the amount of the judgment plus
post-judgment taxes, penalties, and interest owing against the
property exceeds the market value; and
(2) each taxing unit entitled to receive proceeds of
the sale consents to the sale for that amount.
(k) A sale under Subsection (j) discharges and extinguishes
all liens foreclosed by the judgment and, with the exception of the
prorated tax for the current year that is assessed under Section
26.10, the liens for post-judgment taxes that accrued from the date
of judgment until the date the taxing unit purchased the property.
The presiding officer of a taxing unit selling real property under
Subsection (j) shall execute a deed to the property conveying to the
purchaser the right, title, and interest acquired or held by each
taxing unit that was a party to the judgment foreclosing tax liens
on the property. The conveyance is subject to any remaining right of
redemption at the time of the sale and to the purchaser's obligation
to pay the prorated taxes for the current year as provided by
Section 26.10. The deed must recite that the liens foreclosed by the
judgment and the post-judgment tax liens are discharged and
extinguished by virtue of the conveyance.
(l) A taxing unit that does not consent to a sale under
Subsection (j) is liable to the taxing unit that purchased the
property for a pro rata share of the costs incurred by the
purchasing unit in maintaining the property, including the costs of
preventing the property from becoming a public nuisance, a danger
to the public, or a threat to the public health. The nonconsenting
unit's share of the costs described by this subsection is
calculated from the date the unit fails to consent to the sale and
is equal to the percentage of the proceeds from a sale of the
property to which the nonconsenting unit would be entitled
multiplied by the costs incurred by the purchasing unit to maintain
the property.
SECTION 3. The change in law made by this Act applies to
real property sold to a taxing unit that is a party to a judgment to
foreclose a tax lien regardless of whether the judgment was entered
before, on, or after the effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
* * * * *