Texas Senate Bill SB2630

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to prohibiting the foreclosure of a lien-free or mortgage-free residence homestead by a local taxing entity.

Impact

The bill introduces several provisions intended to offer relief to homeowners struggling with property taxes. For those whose delinquent taxes exceed the $25,000 threshold, local taxing entities must provide a structured repayment plan lasting a minimum of five years before initiating foreclosure proceedings. Additionally, any tax debt below the specified amount will be classified as a non-enforceable tax lien, which must be settled prior to any transfer of property, thereby ensuring that homeowners have the opportunity to address their tax debts without fear of immediate foreclosure.

Summary

Senate Bill 2630 aims to protect homeowners by prohibiting the foreclosure of lien-free or mortgage-free residences by local taxing entities in Texas. Under the proposed legislation, if a homeowner owns their property outright and owes less than $25,000 in delinquent property taxes, they cannot be subjected to foreclosure. This is a significant amendment to existing tax code provisions, enhancing homeowner protections against financial pressures and potential loss of their homes due to unpaid taxes.

Contention

While the bill appears to broadly benefit homeowners, it could generate contention among local taxing entities, such as municipalities and school districts, which may rely on property tax revenues for funding. Critics may argue that the limitations imposed by this legislation hamper their ability to recover owed taxes and might lead to budgetary constraints for local services. Conversely, proponents may emphasize the bill's protective measures, arguing that it will maintain home ownership and financial stability among residents, particularly those in economically disadvantaged situations.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 33. Delinquency
  • Section: 06