Texas 2017 - 85th Regular

Texas House Bill HB1833 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R2214 CJC-D
2	2	By: Dutton H.B. No. 1833
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption of real property from ad valorem taxation
8	8	during the period between the issuance of a judgment foreclosing a
9	9	tax lien on the property and the sale of the property at a tax sale
10	10	conducted under that judgment or the payment by the property owner
11	11	of that judgment before the sale, as applicable.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
14	14	adding Section 11.281 to read as follows:
15	15	Sec. 11.281. PROPERTY SUBJECT TO FORECLOSURE JUDGMENT. (a)
16	16	Property is exempt from taxation by a taxing unit during the period
17	17	of time beginning on the date a judgment foreclosing a tax lien on
18	18	the property is entered and ending:
19	19	(1) on the date the property is sold to a purchaser or
20	20	bid off to a taxing unit at a tax sale conducted under that
21	21	judgment; or
22	22	(2) if the property owner pays the amount of the
23	23	judgment before the property is sold or bid off, on the date the
24	24	owner pays the judgment.
25	25	(b) If the property owner pays the amount of the judgment
26	26	before the property is sold or redeems the property in the manner
27	27	provided by Section 34.21, a penalty is imposed on the property in
28	28	an amount equal to the amount of the taxes that would have been
29	29	imposed on the property during the period of time the property was
30	30	exempted from taxation under Subsection (a), plus interest at an
31	31	annual rate of seven percent calculated from the dates on which the
32	32	taxes would have become due. A tax lien attaches to the property on
33	33	the date the property owner pays the judgment or redeems the
34	34	property, as applicable, to secure payment of the penalty and
35	35	interest imposed under this subsection. The lien exists in favor of
36	36	all taxing units for which the penalty is imposed.
37	37	SECTION 2. Section 11.43(a), Tax Code, is amended to read as
38	38	follows:
39	39	(a) To receive an exemption, a person claiming the
40	40	exemption, other than an exemption authorized by Section 11.11,
41	41	11.12, 11.14, 11.145, 11.146, 11.15, 11.16, 11.161, [or] 11.25, or
42	42	11.281 [of this code], must apply for the exemption. To apply for
43	43	an exemption, a person must file an exemption application form with
44	44	the chief appraiser for each appraisal district in which the
45	45	property subject to the claimed exemption has situs.
46	46	SECTION 3. Section 33.52(d), Tax Code, is amended to read as
47	47	follows:
48	48	(d) Except as provided by Section 11.281 [34.05(k)], a
49	49	taxing unit's claim for taxes that become delinquent after the date
50	50	of the judgment is not affected by the entry of the judgment or a tax
51	51	sale conducted under that judgment. Those taxes may be collected by
52	52	any remedy provided by this title.
53	53	SECTION 4. Section 34.01(l), Tax Code, is amended to read as
54	54	follows:
55	55	(l) Notwithstanding that property is bid off to a taxing
56	56	unit under this section, a taxing unit that established a tax lien
57	57	in the suit may continue to enforce collection of any amount for
58	58	which a former owner of the property is liable to the taxing unit[,
59	59	including any post-judgment taxes, penalties, and interest,] in any
60	60	other manner provided by law.
61	61	SECTION 5. Sections 34.05(j) and (k), Tax Code, are amended
62	62	to read as follows:
63	63	(j) In lieu of a sale pursuant to Subsections (c) and (d),
64	64	the taxing unit that purchased the property may sell the property at
65	65	a private sale for an amount equal to or greater than its market
66	66	value, as shown by the most recent certified appraisal roll, if:
67	67	(1) the [sum of the] amount of the judgment [plus
68	68	post-judgment taxes, penalties, and interest] owing against the
69	69	property exceeds the market value of the property; and
70	70	(2) each taxing unit entitled to receive proceeds of
71	71	the sale consents to the sale for that amount.
72	72	(k) A sale under Subsection (j) discharges and extinguishes
73	73	all liens foreclosed by the judgment [and, with the exception of the
74	74	prorated tax for the current year that is assessed under Section
75	75	26.10, the liens for post-judgment taxes that accrued from the date
76	76	of judgment until the date the taxing unit purchased the property].
77	77	The presiding officer of a taxing unit selling real property under
78	78	Subsection (j) shall execute a deed to the property conveying to the
79	79	purchaser the right, title, and interest acquired or held by each
80	80	taxing unit that was a party to the judgment foreclosing tax liens
81	81	on the property. The conveyance is subject to any remaining right
82	82	of redemption at the time of the sale and to the purchaser's
83	83	obligation to pay the prorated taxes for the current year as
84	84	provided by Section 26.10. The deed must recite that the liens
85	85	foreclosed by the judgment [and the post-judgment tax liens] are
86	86	discharged and extinguished by virtue of the conveyance.
87	87	SECTION 6. The changes in law made by this Act apply only to
88	88	an ad valorem tax year that begins on or after January 1, 2018.
89	89	SECTION 7. This Act takes effect January 1, 2018, but only
90	90	if the constitutional amendment proposed by the 85th Legislature,
91	91	Regular Session, 2017, authorizing the legislature to exempt real
92	92	property from ad valorem taxation during the period between the
93	93	issuance of a judgment foreclosing a tax lien on the property and
94	94	the sale of the property at a tax sale conducted under that judgment
95	95	or the payment by the property owner of that judgment before the
96	96	sale, as applicable, is approved by the voters. If that
97	97	constitutional amendment is not approved by the voters, this Act
98	98	has no effect.