89R11508 PRL-D
By: Dutton H.B. No. 3581
A BILL TO BE ENTITLED
AN ACT
relating to the period for redeeming the residence homestead of an
elderly person sold at an ad valorem tax sale.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 34.21, Tax Code, is amended by amending
Subsections (a), (b), and (c) and adding Subsection (d-1) to read as
follows:
(a) The owner of real property sold at a tax sale to a
purchaser other than a taxing unit that was used as the residence
homestead of the owner or that was land designated for agricultural
use when the suit or the application for the warrant was filed, or
the owner of a mineral interest sold at a tax sale to a purchaser
other than a taxing unit, may redeem the property on or before the
second anniversary of the date on which the purchaser's deed is
filed for record, or on or before a later anniversary of that date
as provided by Subsection (d-1), by paying the purchaser the amount
the purchaser bid for the property, the amount of the deed recording
fee, and the amount paid by the purchaser as taxes, penalties,
interest, and costs on the property, plus a redemption premium of 25
percent of the aggregate total if the property is redeemed during
the first year of the redemption period or 50 percent of the
aggregate total if the property is redeemed during a subsequent
[the second] year of the applicable redemption period.
(b) If property that was used as the owner's residence
homestead or was land designated for agricultural use when the suit
or the application for the warrant was filed, or that is a mineral
interest, is bid off to a taxing unit under Section 34.01(j) or (p)
and has not been resold by the taxing unit, the owner having a right
of redemption may redeem the property on or before the second
anniversary of the date on which the deed of the taxing unit is
filed for record, or on or before a later anniversary of that date
as provided by Subsection (d-1), by paying the taxing unit:
(1) the lesser of the amount of the judgment against
the property or the market value of the property as specified in
that judgment, plus the amount of the fee for filing the taxing
unit's deed and the amount spent by the taxing unit as costs on the
property, if the property was judicially foreclosed and bid off to
the taxing unit under Section 34.01(j); or
(2) the lesser of the amount of taxes, penalties,
interest, and costs for which the warrant was issued or the market
value of the property as specified in the warrant, plus the amount
of the fee for filing the taxing unit's deed and the amount spent by
the taxing unit as costs on the property, if the property was seized
under Subchapter E, Chapter 33, and bid off to the taxing unit under
Section 34.01(p).
(c) If real property that was used as the owner's residence
homestead or was land designated for agricultural use when the suit
or the application for the warrant was filed, or that is a mineral
interest, has been resold by the taxing unit under Section 34.05,
the owner of the property having a right of redemption may redeem
the property on or before the second anniversary of the date on
which the taxing unit files for record the deed from the sheriff or
constable, or on or before a later anniversary of that date as
provided by Subsection (d-1), by paying the person who purchased
the property from the taxing unit the amount the purchaser paid for
the property, the amount of the fee for filing the purchaser's deed
for record, and the amount paid by the purchaser as taxes,
penalties, interest, and costs on the property, plus a redemption
premium of 25 percent of the aggregate total if the property is
redeemed in the first year of the redemption period or 50 percent of
the aggregate total if the property is redeemed during a subsequent
[in the second] year of the applicable redemption period.
(d-1) Notwithstanding the general redemption period
prescribed by Subsection (a), (b), or (c), a person 65 years of age
or older who was an owner of real property subject to a tax sale
under Section 34.01 that was the owner's residence homestead when
the suit or the application for the warrant was filed may redeem the
property on or before the fourth anniversary of the date on which:
(1) the purchaser's deed is filed for record, if the
property is redeemed under Subsection (a);
(2) the deed of the taxing unit is filed for record, if
the property is redeemed under Subsection (b); or
(3) the taxing unit files for record the deed from the
sheriff or constable, if the property is redeemed under Subsection
(c).
SECTION 2. Section 33.06(c-1), Tax Code, is amended to read
as follows:
(c-1) To obtain an abatement of a pending sale to foreclose
the tax lien, the individual must deliver an affidavit stating the
facts required to be established by Subsection (a) to the chief
appraiser of each appraisal district that appraises the property,
the collector for the taxing unit that requested the order of sale
or the attorney representing that taxing unit for the collection of
delinquent taxes, and the officer charged with selling the property
not later than the fifth day before the date of the sale. After an
affidavit is delivered under this subsection, the property may not
be sold at a tax sale until the 181st day after the date the
collector for the taxing unit delivers a notice of delinquency of
the taxes following the date the individual no longer owns and
occupies the property as a residence homestead. If property is sold
in violation of this section, the property owner may file a motion
to set aside the sale under the same cause number and in the same
court as a judgment reference in the order of sale. The motion must
be filed during the applicable redemption period as set forth in
Section 34.21(a) or (d-1) or, if the property is bid off to a taxing
entity, on or before the 180th day following the date the taxing
unit's deed is filed of record, whichever is later. This right is
not transferable to a third party.
SECTION 3. The change in law made by this Act applies only
to the redemption of real property sold or bid off at a tax sale for
which the deed from the sale or transfer is filed for record on or
after the effective date of this Act. The redemption of real
property sold or bid off at a tax sale for which the deed from the
sale or transfer is filed for record before the effective date of
this Act is governed by the law in effect when the deed is filed, and
the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to lengthen the period for redeeming the
residence homestead of a person 65 years of age or older sold at an
ad valorem tax sale is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.