Bill Text: TX SB2091 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to the authority of a taxing unit to sell certain seized or foreclosed property to an owner of an abutting property without conducting a public sale.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-06-18 - Effective on 9/1/23 [SB2091 Detail]

Download: Texas-2023-SB2091-Enrolled.html
 
 
  S.B. No. 2091
 
 
 
 
AN ACT
  relating to the authority of a taxing unit to sell certain seized or
  foreclosed property to an owner of an abutting property without
  conducting a public sale.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 33.43(a), Tax Code, is amended to read as
  follows:
         (a)  A petition initiating a suit to collect a delinquent
  property tax is sufficient if it alleges that:
               (1)  the taxing unit is legally constituted and
  authorized to impose and collect ad valorem taxes on property;
               (2)  tax in a stated amount was legally imposed on each
  separately described property for each year specified and on each
  person named if known who owned the property on January 1 of the
  year for which the tax was imposed;
               (3)  the tax was imposed in the county in which the suit
  is filed;
               (4)  the tax is delinquent;
               (5)  penalties, interest, and costs authorized by law
  in a stated amount for each separately assessed property are due;
               (6)  the taxing unit is entitled to recover each
  penalty that is incurred and all interest that accrues on
  delinquent taxes imposed on the property from the date of the
  judgment to the date of the sale under Section 34.01 or 34.0101, or
  under Section 253.010, Local Government Code, as applicable, if the
  suit seeks to foreclose a tax lien;
               (7)  the person sued owned the property on January 1 of
  the year for which the tax was imposed if the suit seeks to enforce
  personal liability;
               (8)  the person sued owns the property when the suit is
  filed if the suit seeks to foreclose a tax lien;
               (9)  the taxing unit asserts a lien on each separately
  described property to secure the payment of all taxes, penalties,
  interest, and costs due if the suit seeks to foreclose a tax lien;
               (10)  all things required by law to be done have been
  done properly by the appropriate officials; and
               (11)  the attorney signing the petition is legally
  authorized to prosecute the suit on behalf of the taxing unit.
         SECTION 2.  Subchapter A, Chapter 34, Tax Code, is amended by
  adding Section 34.0101 to read as follows:
         Sec. 34.0101.  SALE OF CERTAIN PROPERTY TO OWNER OF ABUTTING
  PROPERTY. (a)  In this section:
               (1)  "Flood insurance rate map" means the most recent
  flood hazard map published by the Federal Emergency Management
  Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
  Section 4001 et seq.).
               (2)  "Floodway" means an area that is identified on the
  flood insurance rate map as a regulatory floodway, including the
  channel of a river or other watercourse and the adjacent land areas
  that must be reserved for the discharge of a base flood, also
  referred to as a 100-year flood, without cumulatively increasing
  the water surface elevation more than a designated height.
         (b)  This section applies to real property:
               (1)  that is:
                     (A)  seized under a tax warrant issued under
  Subchapter E, Chapter 33; or
                     (B)  ordered sold pursuant to foreclosure of a tax
  lien; and
               (2)  that is:
                     (A)  a narrow strip of land or other parcel of land
  that because of its shape or small area cannot be used independently
  under its current zoning classification or under applicable
  subdivision or other development ordinances;
                     (B)  landlocked without direct access to a public
  road; or
                     (C)  located in:
                           (i)  an area designated by the Federal
  Emergency Management Agency under the National Flood Insurance Act
  of 1968 (42 U.S.C. Section 4001 et seq.) as having a two-tenths of
  one percent or greater annual chance of flooding; or
                           (ii)  a floodway.
         (c)  Sections 34.01(b), (c), (d), (e), (f), (g), (h), (i),
  (m), (n), (q), and (s), 34.02, 34.03, 34.04, and 34.21 apply to a
  sale of real property under this section.
         (d)  Notwithstanding any other law, including Sections
  263.001 and 272.001, Local Government Code, and subject to
  Subsection (e) of this section, a taxing unit that requested a tax
  warrant or order of sale for real property subject to this section
  may direct the officer charged with selling the property to sell the
  property to an owner of abutting property at a private sale. 
         (e)  A taxing unit may not direct the sale of real property at
  a private sale under this section unless:
               (1)  the property is offered for sale at a public
  auction; and
               (2)  a bid sufficient to pay the amount specified by
  Subsection (h) is not received.
         (f)  A taxing unit that directs the private sale under this
  section of real property that abuts two or more adjacent parcels of
  real property having different owners must give notice of the sale
  to each abutting owner. The notice must state that the taxing unit
  will:
               (1)  offer the property for sale; 
               (2)  accept sealed bids for the property; and
               (3)  sell the property to the highest bidder. 
         (g)  A purchaser of property under this section must meet the
  requirements of Section 34.015.
         (h)  A taxing unit that directs the sale of real property
  under this section may not sell the property for an amount that is
  less than the lesser of:
               (1)  the property's market value, as specified in the
  warrant or the judgment, as applicable; or
               (2)  the following amount, as applicable:
                     (A)  the amount provided by Section 34.01(p), in
  the case of property described by Subsection (b)(1)(A) of this
  section; or 
                     (B)  the amount provided by Section 34.01(b), in
  the case of property described by Subsection (b)(1)(B) of this
  section.
         (i)  A taxing unit that requested a tax warrant or order of
  sale for real property subject to this section may sell the property
  under this section without the consent of any taxing unit entitled
  to receive proceeds of the sale.
         SECTION 3.  Sections 34.02(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  The proceeds of a tax sale under Section 33.94, [or]
  34.01, or 34.0101 shall be applied in the order prescribed by
  Subsection (b).  The amount included under each subdivision of
  Subsection (b) must be fully paid before any of the proceeds may be
  applied to the amount included under a subsequent subdivision.
         (d)  The officer conducting a sale under Section 33.94, [or]
  34.01, or 34.0101 shall pay any excess proceeds after payment of all
  amounts due all participants in the sale as specified by Subsection
  (b) to the clerk of the court issuing the warrant or order of sale.
         SECTION 4.  Section 33.43(a), Tax Code, as amended by this
  Act, applies only to a petition initiating a suit to collect a
  delinquent property tax filed on or after the effective date of this
  Act.
         SECTION 5.  This Act takes effect September 1, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2091 passed the Senate on
  April 4, 2023, by the following vote: Yeas 30, Nays 1; and that
  the Senate concurred in House amendment on May 26, 2023, by the
  following vote: Yeas 28, Nays 3.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2091 passed the House, with
  amendment, on May 19, 2023, by the following vote: Yeas 102,
  Nays 41, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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