Bill Text: TX SB2173 | 2025-2026 | 89th Legislature | Enrolled
Bill Title: Relating to the effect of a tax certificate accompanying a transfer of certain property.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2025-05-28 - Effective on 9/1/25 [SB2173 Detail]
Download: Texas-2025-SB2173-Enrolled.html
| S.B. No. 2173 | ||
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| relating to the effect of a tax certificate accompanying a transfer | ||
| of certain property. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 31.08, Tax Code, is amended by amending | ||
| Subsection (b) and adding Subsection (d) to read as follows: | ||
| (b) Except as provided by Subsections [ |
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| (d) [ |
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| by a tax certificate that erroneously indicates that no delinquent | ||
| taxes, penalties, or interest are due a taxing unit on the property | ||
| or that fails to include property because of its omission from an | ||
| appraisal roll as described under Section 25.21, the taxing unit's | ||
| tax lien on the property, including, if applicable, the tax lien | ||
| securing the payment of any delinquent taxes, penalties, or | ||
| interest that are subsequently determined to be due the taxing unit | ||
| on the property because a residence homestead exemption was | ||
| erroneously allowed for the property and was subsequently canceled, | ||
| is extinguished and the purchaser of the property is absolved of | ||
| liability to the taxing unit for delinquent taxes, penalties, or | ||
| interest on the property or for taxes based on omitted property. | ||
| The person who was liable for the tax for the year the tax was | ||
| imposed or the property was omitted remains personally liable for | ||
| the tax and for any penalties or interest. | ||
| (d) A tax certificate that accompanies a transfer of | ||
| property and erroneously indicates that no delinquent taxes, | ||
| penalties, or interest are due a taxing unit on the property because | ||
| a residence homestead exemption was erroneously allowed for the | ||
| property and was subsequently canceled does not extinguish the tax | ||
| lien securing the payment of any delinquent taxes, penalties, or | ||
| interest that are subsequently determined to be due the taxing unit | ||
| on the property if the chief appraiser or the collector for a taxing | ||
| unit determines that the transfer of the property occurred between: | ||
| (1) two individuals who are related within the first | ||
| degree by consanguinity or affinity, as determined under Chapter | ||
| 573, Government Code; | ||
| (2) an employer and an employee; | ||
| (3) a parent company and a subsidiary of that parent | ||
| company; or | ||
| (4) a trust and a beneficiary of that trust. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a tax certificate issued on or after the effective date of this | ||
| Act. A tax certificate issued before the effective date of this Act | ||
| is covered by the law in effect on the date of issuance, and the | ||
| former law is continued in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 2173 passed the Senate on | ||
| May 1, 2025, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 2173 passed the House on | ||
| May 15, 2025, by the following vote: Yeas 140, Nays 0, three | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
