Texas Senate Bill SJR55

Texas 2017 - 85th Regular

Caption

Proposing a constitutional amendment relating to the effect of a sale of property on the tax lien on the property to secure the payment of ad valorem taxes, penalties, and interest imposed on the property as a result of the addition to the appraisal roll of property or property value that was erroneously exempted in a prior year.

Impact

If enacted, SJR55 would substantially change how tax liens are handled with respect to properties that had value erroneously exempted in prior years. Specifically, it would prevent the enforcement of tax liens against such properties upon their sale, relieving the new owners of the burden of previous tax liabilities during a legitimate transaction. This amendment is designed to ensure fairness and to support property buyers who may have been unaware of past tax exemptions associated with the property.

Summary

SJR55 proposes a constitutional amendment regarding the enforcement of tax liens on properties that were erroneously exempted from property taxes in previous years. The main focus of this amendment is to address situations where property values added to the appraisal roll may have been wrongly declared exempt, and it aims to provide relief from tax liens in instances where the property is sold in an arm's length transaction post-exemption. This proposal aims to clarify the legal repercussions of property sales concerning tax liabilities.

Sentiment

The sentiment around SJR55 appears to be supportive among those advocating for property owners' rights and fairness in taxation. Proponents argue that the bill protects innocent buyers from inheriting unjust tax liabilities that were tied to previous owners and recognizes the importance of accurate tax assessments. However, there may also be contention from those who argue that such a measure could limit the ability of tax authorities to collect due taxes and thus impact local government funding.

Contention

Key points of contention surrounding SJR55 could revolve around the potential for tax revenue loss to local governments, depending on how widely the amendment is applied. Critics might express concerns about safeguarding tax collections while balancing the rights of property owners. The discussion may also highlight broader implications for tax policy and the need for transparency and consistency in property tax assessments, making it a focal point for various stakeholders in the community.