82R2638 ALL-F
By: Wentworth S.B. No. 1482
A BILL TO BE ENTITLED
AN ACT
relating to the priority of ad valorem tax liens and certain
security interests.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 32.05(b) and (c), Tax Code, are amended
to read as follows:
(b) Except as provided by Subsection (c)(1) or (4), 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.
(c) A tax lien provided by this chapter is inferior to:
(1) a claim for any survivor's allowance, funeral
expenses, or expenses of the last illness of a decedent made against
the estate of a decedent as provided by law;
(2) except as provided by Subsection (b)(2), a
recorded restrictive covenant that runs with the land and was
recorded before January 1 of the year the tax lien arose; [or]
(3) a valid easement of record recorded before January
1 of the year the tax lien arose; or
(4) a perfected purchase-money security interest, as
described by Section 9.103, Business & Commerce Code.
SECTION 2. The change in law made by this Act applies only
to a purchase-money security interest that attaches on or after the
effective date of this Act. A purchase-money security interest
that attaches before the effective date of this Act is governed by
the law in effect on the date the security interest attached, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.