Texas Senate Bill SB1997

Texas 2015 - 84th Regular

Caption

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.

Impact

The implications of SB1997 are significant for property owners and lenders. By refining the conditions under which property tax loans may be accessed in relation to existing liens, the bill could facilitate greater financial flexibility for property owners perhaps facing potential tax lien challenges. This may lead to improved financial stability for some owners, allowing them to manage their tax obligations more effectively. Moreover, it aims to prevent the overlapping of tax liens that could complicate or hinder the financial agreements entered by property owners.

Summary

SB1997 amends the Texas Tax Code concerning the authority of property owners to enter into property tax loans when their property is already subject to a lien securing such a loan. The bill aims to clarify the limitations on transferring tax liens and offers specific provisions that govern such transactions. Specifically, it addresses scenarios where properties are financed with government grants or below-market loans, which usually come with additional restrictions, to ensure compliance with existing covenants.

Contention

While the bill seeks to streamline the process for obtaining property tax loans, it may encounter contention relating to its impact on governmental programs designed to assist low-income property owners. Critics might argue that by allowing more flexibility in entering tax tax loans, the bill could inadvertently diminish protections for those reliant on grants or subsidized financing intended to keep housing affordable. Thus, a careful balance between facilitating loans and preserving support for vulnerable property owners will be a key point of discussion following the bill's introduction.