84R8438 SMH-F
By: Menéndez S.B. No. 1997
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a property owner to enter into a
property tax loan if the property is already subject to a lien
securing such a loan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 32.06(a-8), Tax Code, is amended to read
as follows:
(a-8) A tax lien may not be transferred to the person who
pays the taxes on behalf of the property owner under the
authorization described by Subsection (a-1) if the real property:
(1) has been financed, wholly or partly, with a grant
or below market rate loan provided by a governmental program or
nonprofit organization and is subject to the covenants of the grant
or loan; [or]
(2) is encumbered by a lien recorded under Subchapter
A, Chapter 214, Local Government Code; or
(3) is encumbered by a previously transferred tax
lien.
SECTION 2. The change in law made by this Act applies only
to an ad valorem tax lien transferred on or after the effective date
of this Act. An ad valorem tax lien transferred before the
effective date of this Act is governed by the law in effect on the
date the tax lien was transferred, and the former law is continued
in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.