| 1 | 1 | | 2025S0235-T 03/13/25 |
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| 2 | 2 | | By: Creighton S.B. No. 2630 |
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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 prohibiting the foreclosure of a lien-free or |
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| 10 | 10 | | mortgage-free residence homestead by a local taxing entity. |
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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 33.06, Tax Code, is amended by adding |
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| 13 | 13 | | Subsections (i), (j), and (k) to read as follows: |
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| 14 | 14 | | (i) Notwithstanding any other provision of this code, a |
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| 15 | 15 | | local taxing entity, including a county, municipality, school |
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| 16 | 16 | | district, or special taxing district, may not initiate foreclosure |
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| 17 | 17 | | proceedings against a residence homestead if: |
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| 18 | 18 | | (1) the homeowner owns the property outright, with no |
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| 19 | 19 | | active mortgage, home equity loan, reverse mortgage, or any other |
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| 20 | 20 | | recorded lien held by a financial institution or lender; and |
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| 21 | 21 | | (2) the homeowner's delinquent property taxes are less |
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| 22 | 22 | | than $25,000, including penalties and interest. |
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| 23 | 23 | | (j) If the delinquent property taxes exceed the threshold in |
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| 24 | 24 | | Subsection (i)(2), the local taxing entity must first offer the |
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| 25 | 25 | | homeowner a structured repayment plan of at least five years before |
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| 26 | 26 | | initiating foreclosure proceedings. |
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| 27 | 27 | | (k) Any property tax debt less than $25,000 that remains |
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| 28 | 28 | | unpaid shall be converted into a non-enforceable tax lien that must |
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| 29 | 29 | | be satisfied before the property can be sold, transferred, or |
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| 30 | 30 | | inherited. |
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| 31 | 31 | | SECTION 2. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect September 1, 2025. |
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