Texas Senate Bill SB2173

Texas 2025 - 89th Regular

• Filed: 3/10/25
• Out of Senate Committee: 4/22/25
• Voted on by Senate: 5/1/25
• Out of House Committee: 5/10/25
• Voted on by House: 5/15/25
• Governor Action: 5/28/25

Caption

Relating to the effect of a tax certificate accompanying a transfer of certain property.

Impact

The changes brought about by SB2173 primarily affect property transactions and tax liability for buyers. Under the new provisions, if a tax certificate is issued that inaccurately reflects the tax status of a property, the burden to settle any delinquent taxes does not fall on the new owners under specific conditions, namely involving relationships between the parties involved in the transaction. By defining these parameters, the bill aims to alleviate concerns regarding tax liabilities that may arise from errors in tax documentation, thus promoting more fluid property sales.

Summary

SB2173 is a legislative act that outlines the implications of a tax certificate accompanying the transfer of certain properties in Texas. The bill amends existing sections of the Tax Code, particularly Section 31.08, to clarify the conditions under which a tax lien on a property is extinguished. This occurs when a tax certificate erroneously indicates that no delinquent taxes are owed on the property, most notably in cases where residence homestead exemptions have been incorrectly applied and subsequently canceled. The intent of this bill is to provide legal certainty and protection for purchasers of properties who receive inaccurate tax certificates during transactions.

Sentiment

The sentiment surrounding SB2173 appears to be positive, as it received unanimous support during legislative votes—passing the Senate 31-0 and the House 140-0. This broad consensus suggests that the bill is viewed favorably across party lines, indicating that legislators recognize the importance of ensuring accurate tax information is available to potential property buyers. The proactive approach of the bill seems to resonate well with both the real estate sector and legal entities involved in property transactions.

Contention

While SB2173 has garnered widespread support, points of contention may arise concerning the exceptions it establishes regarding property transfers. Specifically, the bill stipulates that tax certificates do not negate tax liens if the transaction occurs between related individuals, employers and employees, or entities with certain affiliations. Some stakeholders might question whether these exceptions are sufficient, or if they impose undue limitations on buyers seeking to protect themselves from tax liabilities. Therefore, while the bill aims to clarify tax obligations, further discussions may be necessary to address these nuances and ensure comprehensive protection for all property purchasers.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 31. Collections
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