2025S0235-T 03/13/25
By: Creighton S.B. No. 2630
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the foreclosure of a lien-free or
mortgage-free residence homestead by a local taxing entity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.06, Tax Code, is amended by adding
Subsections (i), (j), and (k) to read as follows:
(i) Notwithstanding any other provision of this code, a
local taxing entity, including a county, municipality, school
district, or special taxing district, may not initiate foreclosure
proceedings against a residence homestead if:
(1) the homeowner owns the property outright, with no
active mortgage, home equity loan, reverse mortgage, or any other
recorded lien held by a financial institution or lender; and
(2) the homeowner's delinquent property taxes are less
than $25,000, including penalties and interest.
(j) If the delinquent property taxes exceed the threshold in
Subsection (i)(2), the local taxing entity must first offer the
homeowner a structured repayment plan of at least five years before
initiating foreclosure proceedings.
(k) Any property tax debt less than $25,000 that remains
unpaid shall be converted into a non-enforceable tax lien that must
be satisfied before the property can be sold, transferred, or
inherited.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.