Texas Senate Bill SB1361

Texas 2019 - 86th Regular

Caption

Relating to the public resale by means of a public auction using online bidding and sale of property purchased by a taxing unit at an ad valorem tax sale.

Impact

The implications of SB 1361 on state laws are significant, as it proposes changes to the Texas Tax Code to enable online sales. This could lead to faster resolution times for properties that have gone through tax foreclosure, which could benefit local governments in terms of revenue recovery and improved property management. Additionally, the ease of online bidding might attract a larger and more diverse pool of potential buyers, increasing competition and potentially leading to higher final sale prices for foreclosed properties.

Summary

Senate Bill 1361 aims to modernize the process of public resale of properties acquired through ad valorem tax sales by allowing for these auctions to be conducted via online bidding. This legislation is a response to technological advancements and the growing trend towards digital transactions, with the objective of making the process more accessible and efficient for both taxing units and potential buyers. In doing so, it seeks to streamline the sale of properties that have been foreclosed due to unpaid taxes, enhancing the capacity for taxable properties to re-enter the market effectively.

Contention

While SB 1361 is largely seen as a positive modernization effort, there may be concerns regarding transparency and fairness in the online auction process. Stakeholders such as traditional real estate agents and community members may voice apprehensions about the impact of moving these sales online, particularly regarding accessibility for individuals without internet access. Additionally, there could be questions about the adequacy of current safeguards against fraud in online transactions and concerns related to the digital divide affecting potential bidders.