Bill Text: TX SB1122 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the sale of delinquent tax receivables by certain local governments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-16 - Referred to Finance [SB1122 Detail]
Download: Texas-2011-SB1122-Introduced.html
82R7614 TJB-F | ||
By: Estes | S.B. No. 1122 |
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relating to the sale of delinquent tax receivables by certain local | ||
governments. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 8, Local Government Code, is | ||
amended by adding Chapter 274 to read as follows: | ||
CHAPTER 274. SALE OF DELINQUENT TAX RECEIVABLES | ||
Sec. 274.001. DEFINITIONS. In this chapter: | ||
(1) "Delinquent tax receivable" means a right to | ||
receive the revenue from: | ||
(A) a delinquent ad valorem tax imposed by a | ||
school district for maintenance and operations purposes for a | ||
specific tax year that remains unpaid, including any penalty and | ||
interest that accrues as a result of the delinquency; | ||
(B) a delinquent ad valorem tax imposed by a | ||
county or municipality for a specific tax year that remains unpaid, | ||
including any penalty and interest that accrues as a result of the | ||
delinquency; or | ||
(C) a delinquent assessment or other charge | ||
imposed by a county or municipality secured by a lien on real | ||
property that remains unpaid, including any penalty and interest | ||
that accrues as a result of the delinquency. | ||
(2) "Local government" means a county, municipality, | ||
or school district. | ||
Sec. 274.002. AUTHORITY TO SELL DELINQUENT TAX RECEIVABLE. | ||
A local government may sell a delinquent tax receivable at any time. | ||
Sec. 274.003. PROCEDURE FOR SALE OF DELINQUENT TAX | ||
RECEIVABLE. (a) A local government may sell a delinquent tax | ||
receivable through a negotiated sale or competitive bidding. The | ||
sale must be on the terms the governing body of the local government | ||
determines to be in the best interest of the local government. | ||
(b) The sale of a delinquent tax receivable must be made | ||
pursuant to a purchase and sale agreement that transfers to the | ||
purchaser the right to receive the delinquent tax revenue and any | ||
penalty and interest that accrues after the date of the sale. | ||
Sec. 274.004. AMOUNT OF DELINQUENT TAX RECEIVABLE. The | ||
amount of a delinquent tax receivable sold under this chapter must | ||
include: | ||
(1) the original amount of the delinquent ad valorem | ||
tax and the amount of any penalty and interest that accrued and | ||
remains unpaid on the date of the sale; or | ||
(2) the original amount of a delinquent assessment or | ||
other charge other than a delinquent ad valorem tax and the amount | ||
of any penalty and interest that accrued and remains unpaid on the | ||
date of the sale. | ||
Sec. 274.005. LIEN NOT TRANSFERRED. The sale of a | ||
delinquent tax receivable does not transfer to the purchaser a lien | ||
or the right to foreclose a lien on property associated with the | ||
delinquent tax receivable. | ||
Sec. 274.006. COLLECTION BY LOCAL GOVERNMENT. The sale of a | ||
delinquent tax receivable does not alter or affect the duty or | ||
authority of a local government to collect a delinquent tax | ||
receivable. | ||
Sec. 274.007. PROHIBITED ACTIVITY. A purchaser of a | ||
delinquent tax receivable may not engage, directly or indirectly, | ||
in the collection of a delinquent tax receivable. | ||
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, 2011. |