| 1 | 1 | | 89R12974 JBD-F |
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| 2 | 2 | | By: Darby H.B. No. 3710 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the effect of a tax certificate accompanying a transfer |
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| 10 | 10 | | of certain property. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 31.08, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (b) and adding Subsection (d) to read as follows: |
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| 14 | 14 | | (b) Except as provided by Subsections [Subsection] (c) and |
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| 15 | 15 | | (d) [of this section], if a person transfers property accompanied |
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| 16 | 16 | | by a tax certificate that erroneously indicates that no delinquent |
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| 17 | 17 | | taxes, penalties, or interest are due a taxing unit on the property |
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| 18 | 18 | | or that fails to include property because of its omission from an |
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| 19 | 19 | | appraisal roll as described under Section 25.21, the taxing unit's |
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| 20 | 20 | | tax lien on the property, including, if applicable, the tax lien |
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| 21 | 21 | | securing the payment of any delinquent taxes, penalties, or |
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| 22 | 22 | | interest that are subsequently determined to be due the taxing unit |
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| 23 | 23 | | on the property because a residence homestead exemption was |
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| 24 | 24 | | erroneously allowed for the property and was subsequently canceled, |
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| 25 | 25 | | is extinguished and the purchaser of the property is absolved of |
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| 26 | 26 | | liability to the taxing unit for delinquent taxes, penalties, or |
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| 27 | 27 | | interest on the property or for taxes based on omitted property. |
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| 28 | 28 | | The person who was liable for the tax for the year the tax was |
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| 29 | 29 | | imposed or the property was omitted remains personally liable for |
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| 30 | 30 | | the tax and for any penalties or interest. |
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| 31 | 31 | | (d) A tax certificate that accompanies a transfer of |
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| 32 | 32 | | property and erroneously indicates that no delinquent taxes, |
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| 33 | 33 | | penalties, or interest are due a taxing unit on the property because |
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| 34 | 34 | | a residence homestead exemption was erroneously allowed for the |
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| 35 | 35 | | property and was subsequently canceled does not extinguish the tax |
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| 36 | 36 | | lien securing the payment of any delinquent taxes, penalties, or |
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| 37 | 37 | | interest that are subsequently determined to be due the taxing unit |
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| 38 | 38 | | on the property if the chief appraiser or the collector for a taxing |
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| 39 | 39 | | unit determines that the transfer of the property occurred between: |
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| 40 | 40 | | (1) two individuals who are related within the first |
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| 41 | 41 | | degree by consanguinity or affinity, as determined under Chapter |
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| 42 | 42 | | 573, Government Code; |
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| 43 | 43 | | (2) an employer and an employee; |
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| 44 | 44 | | (3) a parent company and a subsidiary of that parent |
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| 45 | 45 | | company; or |
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| 46 | 46 | | (4) a trust and a beneficiary of that trust. |
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| 47 | 47 | | SECTION 2. The change in law made by this Act applies only |
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| 48 | 48 | | to a tax certificate issued on or after the effective date of this |
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| 49 | 49 | | Act. A tax certificate issued before the effective date of this Act |
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| 50 | 50 | | is covered by the law in effect on the date of issuance, and the |
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| 51 | 51 | | former law is continued in effect for that purpose. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2025. |
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