82R9811 CJC-F
By: Miller of Comal H.B. No. 2901
A BILL TO BE ENTITLED
AN ACT
relating to the priority of a lien for funds advanced by the
transferee of an ad valorem tax lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 32.06(e), Tax Code, is amended to read as
follows:
(e) A transferee holding a tax lien transferred as provided
by this section may not charge a greater rate of interest than 18
percent a year on the funds advanced. Funds advanced are limited
to the taxes, penalties, interest, and collection costs paid as
shown on the tax receipt, expenses paid to record the lien, plus
reasonable closing costs. A transferee assumes the lien priority
of the taxing unit for funds advanced to pay taxes, penalties,
interest, and collection costs as shown on the tax receipt. The
lien priority of funds advanced by a transferee to pay closing
costs, fees, and any other expenses incurred by the transferee
after the date the lien is transferred is determined by the date the
statement attesting to the transfer of the tax lien is recorded
under Subsection (d).
SECTION 2. The change in law made by this Act applies only
to a tax lien transferred under Section 32.06, Tax Code, on or after
the effective date of this Act. A tax lien transferred under
Section 32.06, Tax Code, before the effective date of this Act is
governed by the law in effect on the date the tax lien is
transferred, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2011.