89R12974 JBD-F
By: Parker S.B. No. 2173
A BILL TO BE ENTITLED
AN ACT
relating to the effect of a tax certificate accompanying a transfer
of certain property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.08, Tax Code, is amended by amending
Subsection (b) and adding Subsection (d) to read as follows:
(b) Except as provided by Subsections [Subsection] (c) and
(d) [of this section], if a person transfers property accompanied
by a tax certificate that erroneously indicates that no delinquent
taxes, penalties, or interest are due a taxing unit on the property
or that fails to include property because of its omission from an
appraisal roll as described under Section 25.21, the taxing unit's
tax lien on the property, including, if applicable, the tax lien
securing the payment of any delinquent taxes, penalties, or
interest that are subsequently determined to be due the taxing unit
on the property because a residence homestead exemption was
erroneously allowed for the property and was subsequently canceled,
is extinguished and the purchaser of the property is absolved of
liability to the taxing unit for delinquent taxes, penalties, or
interest on the property or for taxes based on omitted property.
The person who was liable for the tax for the year the tax was
imposed or the property was omitted remains personally liable for
the tax and for any penalties or interest.
(d) A tax certificate that accompanies a transfer of
property and erroneously indicates that no delinquent taxes,
penalties, or interest are due a taxing unit on the property because
a residence homestead exemption was erroneously allowed for the
property and was subsequently canceled does not extinguish the tax
lien securing the payment of any delinquent taxes, penalties, or
interest that are subsequently determined to be due the taxing unit
on the property if the chief appraiser or the collector for a taxing
unit determines that the transfer of the property occurred between:
(1) two individuals who are related within the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code;
(2) an employer and an employee;
(3) a parent company and a subsidiary of that parent
company; or
(4) a trust and a beneficiary of that trust.
SECTION 2. The change in law made by this Act applies only
to a tax certificate issued on or after the effective date of this
Act. A tax certificate issued before the effective date of this Act
is covered by the law in effect on the date of issuance, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.