83R5350 TJB-F
By: Hegar S.B. No. 586
A BILL TO BE ENTITLED
AN ACT
relating to the priority of ad valorem tax liens on personal
property subject to a purchase money security interest.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 32.05, Tax Code, is amended by amending
Subsection (b) and adding Subsection (b-2) to read as follows:
(b) Except as provided by 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, except as provided by
Subdivision (4);
(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; and
(4) the claim of any creditor that is the holder of a
purchase money security interest on personal property encumbered by
the tax lien to the extent provided by Subsection (b-2).
(b-2) The priority given to a tax lien by Subsection (b)(4)
prevails only to the extent of the amount of taxes, and of any
penalties or interest on those taxes, that would have been imposed
on the personal property had the property been taxed separately on
the date the tax lien attached. In determining the amount of taxes
that would have been assessed under this subsection, the tax rate is
the applicable rate adopted for the tax year in which the lien
attaches, and the taxable value assigned to the property is the
price of the property agreed to by the delinquent taxpayer and the
creditor at the time the purchase money security interest attached.
SECTION 2. The change in law made by this Act applies only
to a tax lien on personal property for taxes imposed in 2013 and
subsequent tax years. A tax lien on personal property for taxes
imposed in a tax year before the 2013 tax year is governed by the law
in effect on the date the tax lien attached, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect January 1, 2014.