Texas House Bill HJR26

Texas 2017 - 85th 1st C.S.

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 passed, this amendment would significantly alter the existing provisions of the Texas Constitution concerning tax liens. It provides a safeguard for new property owners against unintended tax liabilities resulting from past errors in property tax exemptions. This change could influence potential future property transactions as buyers might be more willing to invest in properties that may have previously had tax exemption issues, knowing they will not incur those liabilities post-sale.

Summary

HJR26 proposes a constitutional amendment concerning the enforcement of tax liens on property related to the payment of ad valorem taxes. Specifically, the bill addresses situations where property or property values were erroneously exempted in prior years and later added to the appraisal roll. The main tenet of the bill is that if such property is sold in an arm's length transaction, a tax lien associated with prior erroneous exemptions cannot be enforced against the new owner for that year.

Contention

The bill may face contention primarily from stakeholders concerned about tax revenue implications. Some legislators and tax authorities might argue that exempting liens could lead to gaps in revenue, potentially affecting funding for local services that depend on property taxes. Additionally, there could be concerns regarding the fairness and transparency of how properties are assessed and taxed after changes in ownership, especially if it allows previous owners to avoid liability for their tax obligations.