Texas 2023 - 88th Regular

Texas Senate Bill SB2091 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 2091
2	2
3	3
4	4	AN ACT
5	5	relating to the authority of a taxing unit to sell certain seized or
6	6	foreclosed property to an owner of an abutting property without
7	7	conducting a public sale.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 33.43(a), Tax Code, is amended to read as
10	10	follows:
11	11	(a) A petition initiating a suit to collect a delinquent
12	12	property tax is sufficient if it alleges that:
13	13	(1) the taxing unit is legally constituted and
14	14	authorized to impose and collect ad valorem taxes on property;
15	15	(2) tax in a stated amount was legally imposed on each
16	16	separately described property for each year specified and on each
17	17	person named if known who owned the property on January 1 of the
18	18	year for which the tax was imposed;
19	19	(3) the tax was imposed in the county in which the suit
20	20	is filed;
21	21	(4) the tax is delinquent;
22	22	(5) penalties, interest, and costs authorized by law
23	23	in a stated amount for each separately assessed property are due;
24	24	(6) the taxing unit is entitled to recover each
25	25	penalty that is incurred and all interest that accrues on
26	26	delinquent taxes imposed on the property from the date of the
27	27	judgment to the date of the sale under Section 34.01 or 34.0101, or
28	28	under Section 253.010, Local Government Code, as applicable, if the
29	29	suit seeks to foreclose a tax lien;
30	30	(7) the person sued owned the property on January 1 of
31	31	the year for which the tax was imposed if the suit seeks to enforce
32	32	personal liability;
33	33	(8) the person sued owns the property when the suit is
34	34	filed if the suit seeks to foreclose a tax lien;
35	35	(9) the taxing unit asserts a lien on each separately
36	36	described property to secure the payment of all taxes, penalties,
37	37	interest, and costs due if the suit seeks to foreclose a tax lien;
38	38	(10) all things required by law to be done have been
39	39	done properly by the appropriate officials; and
40	40	(11) the attorney signing the petition is legally
41	41	authorized to prosecute the suit on behalf of the taxing unit.
42	42	SECTION 2. Subchapter A, Chapter 34, Tax Code, is amended by
43	43	adding Section 34.0101 to read as follows:
44	44	Sec. 34.0101. SALE OF CERTAIN PROPERTY TO OWNER OF ABUTTING
45	45	PROPERTY. (a) In this section:
46	46	(1) "Flood insurance rate map" means the most recent
47	47	flood hazard map published by the Federal Emergency Management
48	48	Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
49	49	Section 4001 et seq.).
50	50	(2) "Floodway" means an area that is identified on the
51	51	flood insurance rate map as a regulatory floodway, including the
52	52	channel of a river or other watercourse and the adjacent land areas
53	53	that must be reserved for the discharge of a base flood, also
54	54	referred to as a 100-year flood, without cumulatively increasing
55	55	the water surface elevation more than a designated height.
56	56	(b) This section applies to real property:
57	57	(1) that is:
58	58	(A) seized under a tax warrant issued under
59	59	Subchapter E, Chapter 33; or
60	60	(B) ordered sold pursuant to foreclosure of a tax
61	61	lien; and
62	62	(2) that is:
63	63	(A) a narrow strip of land or other parcel of land
64	64	that because of its shape or small area cannot be used independently
65	65	under its current zoning classification or under applicable
66	66	subdivision or other development ordinances;
67	67	(B) landlocked without direct access to a public
68	68	road; or
69	69	(C) located in:
70	70	(i) an area designated by the Federal
71	71	Emergency Management Agency under the National Flood Insurance Act
72	72	of 1968 (42 U.S.C. Section 4001 et seq.) as having a two-tenths of
73	73	one percent or greater annual chance of flooding; or
74	74	(ii) a floodway.
75	75	(c) Sections 34.01(b), (c), (d), (e), (f), (g), (h), (i),
76	76	(m), (n), (q), and (s), 34.02, 34.03, 34.04, and 34.21 apply to a
77	77	sale of real property under this section.
78	78	(d) Notwithstanding any other law, including Sections
79	79	263.001 and 272.001, Local Government Code, and subject to
80	80	Subsection (e) of this section, a taxing unit that requested a tax
81	81	warrant or order of sale for real property subject to this section
82	82	may direct the officer charged with selling the property to sell the
83	83	property to an owner of abutting property at a private sale.
84	84	(e) A taxing unit may not direct the sale of real property at
85	85	a private sale under this section unless:
86	86	(1) the property is offered for sale at a public
87	87	auction; and
88	88	(2) a bid sufficient to pay the amount specified by
89	89	Subsection (h) is not received.
90	90	(f) A taxing unit that directs the private sale under this
91	91	section of real property that abuts two or more adjacent parcels of
92	92	real property having different owners must give notice of the sale
93	93	to each abutting owner. The notice must state that the taxing unit
94	94	will:
95	95	(1) offer the property for sale;
96	96	(2) accept sealed bids for the property; and
97	97	(3) sell the property to the highest bidder.
98	98	(g) A purchaser of property under this section must meet the
99	99	requirements of Section 34.015.
100	100	(h) A taxing unit that directs the sale of real property
101	101	under this section may not sell the property for an amount that is
102	102	less than the lesser of:
103	103	(1) the property's market value, as specified in the
104	104	warrant or the judgment, as applicable; or
105	105	(2) the following amount, as applicable:
106	106	(A) the amount provided by Section 34.01(p), in
107	107	the case of property described by Subsection (b)(1)(A) of this
108	108	section; or
109	109	(B) the amount provided by Section 34.01(b), in
110	110	the case of property described by Subsection (b)(1)(B) of this
111	111	section.
112	112	(i) A taxing unit that requested a tax warrant or order of
113	113	sale for real property subject to this section may sell the property
114	114	under this section without the consent of any taxing unit entitled
115	115	to receive proceeds of the sale.
116	116	SECTION 3. Sections 34.02(a) and (d), Tax Code, are amended
117	117	to read as follows:
118	118	(a) The proceeds of a tax sale under Section 33.94, [or]
119	119	34.01, or 34.0101 shall be applied in the order prescribed by
120	120	Subsection (b). The amount included under each subdivision of
121	121	Subsection (b) must be fully paid before any of the proceeds may be
122	122	applied to the amount included under a subsequent subdivision.
123	123	(d) The officer conducting a sale under Section 33.94, [or]
124	124	34.01, or 34.0101 shall pay any excess proceeds after payment of all
125	125	amounts due all participants in the sale as specified by Subsection
126	126	(b) to the clerk of the court issuing the warrant or order of sale.
127	127	SECTION 4. Section 33.43(a), Tax Code, as amended by this
128	128	Act, applies only to a petition initiating a suit to collect a
129	129	delinquent property tax filed on or after the effective date of this
130	130	Act.
131	131	SECTION 5. This Act takes effect September 1, 2023.
132	132	______________________________ ______________________________
133	133	President of the Senate Speaker of the House
134	134	I hereby certify that S.B. No. 2091 passed the Senate on
135	135	April 4, 2023, by the following vote: Yeas 30, Nays 1; and that
136	136	the Senate concurred in House amendment on May 26, 2023, by the
137	137	following vote: Yeas 28, Nays 3.
138	138	______________________________
139	139	Secretary of the Senate
140	140	I hereby certify that S.B. No. 2091 passed the House, with
141	141	amendment, on May 19, 2023, by the following vote: Yeas 102,
142	142	Nays 41, two present not voting.
143	143	______________________________
144	144	Chief Clerk of the House
145	145	Approved:
146	146	______________________________
147	147	Date
148	148	______________________________
149	149	Governor