Texas Senate Bill SB1981

Texas 2015 - 84th Regular

Caption

Relating to the eligibility of persons to participate in an ad valorem tax sale of real property.

Impact

This bill has substantial implications for state laws governing real property sales and taxation. By requiring individuals to register and provide proof of identity as well as certification that they have no outstanding delinquent taxes, the legislation seeks to ensure that parties participating in these sales are financially responsible. This legislation is expected to decrease the likelihood of properties being sold to those who have unresolved tax issues, which can lead to complications in land ownership and further tax implications for local governments.

Summary

SB1981 proposes significant amendments to Texas tax law regarding who is eligible to participate in ad valorem tax sales of real property. The bill specifically stipulates that only individuals meeting certain conditions will be permitted to bid during these sales. It mandates that individuals must register with their county's assessor-collector before being allowed to submit bids, introducing a level of regulation intended to limit participation to qualified bidders only. This is aimed at enhancing the integrity and oversight of tax sales, addressing issues with tax delinquency among bidders.

Contention

The bill does outline clear exemptions and responsibilities, including that certain entities, specifically taxing units and their representatives, are explicitly excluded from bidding. The necessity for periodic certification on an individual’s tax status may raise concerns about the burden of compliance on potential bidders. While supporters argue that these regulations are essential for enhancing accountability in real estate transactions involving tax sales, opponents may view them as unnecessarily restrictive, potentially limiting market access for honest bidders who could be in a position to repurpose or rehabilitate properties.