HB3581 - Relating to the period for redeeming the residence homestead of an elderly person sold at an ad valorem tax sale.

  89R11508 PRL-D     By: Dutton H.B. No. 3581       A BILL TO BE ENTITLED   AN ACT   relating to the period for redeeming the residence homestead of an   elderly person sold at an ad valorem tax sale.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 34.21, Tax Code, is amended by amending   Subsections (a), (b), and (c) and adding Subsection (d-1) to read as   follows:          (a)  The owner of real property sold at a tax sale to a   purchaser other than a taxing unit that was used as the residence   homestead of the owner or that was land designated for agricultural   use when the suit or the application for the warrant was filed, or   the owner of a mineral interest sold at a tax sale to a purchaser   other than a taxing unit, may redeem the property on or before the   second anniversary of the date on which the purchaser's deed is   filed for record , or on or before a later anniversary of that date   as provided by Subsection (d-1), by paying the purchaser the amount   the purchaser bid for the property, the amount of the deed recording   fee, and the amount paid by the purchaser as taxes, penalties,   interest, and costs on the property, plus a redemption premium of 25   percent of the aggregate total if the property is redeemed during   the first year of the redemption period or 50 percent of the   aggregate total if the property is redeemed during a subsequent     [ the second ] year of the applicable  redemption period.          (b)  If property that was used as the owner's residence   homestead or was land designated for agricultural use when the suit   or the application for the warrant was filed, or that is a mineral   interest, is bid off to a taxing unit under Section 34.01(j) or (p)   and has not been resold by the taxing unit, the owner having a right   of redemption may redeem the property on or before the second   anniversary of the date on which the deed of the taxing unit is   filed for record , or on or before a later anniversary of that date   as provided by Subsection (d-1), by paying the taxing unit:                (1)  the lesser of the amount of the judgment against   the property or the market value of the property as specified in   that judgment, plus the amount of the fee for filing the taxing   unit's deed and the amount spent by the taxing unit as costs on the   property, if the property was judicially foreclosed and bid off to   the taxing unit under Section 34.01(j); or                (2)  the lesser of the amount of taxes, penalties,   interest, and costs for which the warrant was issued or the market   value of the property as specified in the warrant, plus the amount   of the fee for filing the taxing unit's deed and the amount spent by   the taxing unit as costs on the property, if the property was seized   under Subchapter E, Chapter 33, and bid off to the taxing unit under   Section 34.01(p).          (c)  If real property that was used as the owner's residence   homestead or was land designated for agricultural use when the suit   or the application for the warrant was filed, or that is a mineral   interest, has been resold by the taxing unit under Section 34.05,   the owner of the property having a right of redemption may redeem   the property on or before the second anniversary of the date on   which the taxing unit files for record the deed from the sheriff or   constable , or on or before a later anniversary of that date as   provided by Subsection (d-1), by paying the person who purchased   the property from the taxing unit the amount the purchaser paid for   the property, the amount of the fee for filing the purchaser's deed   for record, and  the amount paid by the purchaser as taxes,   penalties, interest, and costs on the property, plus a redemption   premium of 25 percent of the aggregate total if the property is   redeemed in the first year of the redemption period or 50 percent of   the aggregate total if the property is redeemed during a subsequent     [ in the second ] year of the applicable  redemption period.           (d-1)     Notwithstanding the general redemption period   prescribed by Subsection (a), (b), or (c), a person 65 years of age   or older who was an owner of real property subject to a tax sale   under Section 34.01 that was the owner's residence homestead when   the suit or the application for the warrant was filed may redeem the   property on or before the fourth anniversary of the date on which:                 (1)     the purchaser's deed is filed for record, if the   property is redeemed under Subsection (a);                 (2)     the deed of the taxing unit is filed for record, if   the property is redeemed under Subsection (b); or                 (3)     the taxing unit files for record the deed from the   sheriff or constable, if the property is redeemed under Subsection   (c).          SECTION 2.  Section 33.06(c-1), Tax Code, is amended to read   as follows:          (c-1)  To obtain an abatement of a pending sale to foreclose   the tax lien, the individual must deliver an affidavit stating the   facts required to be established by Subsection (a) to the chief   appraiser of each appraisal district that appraises the property,   the collector for the taxing unit that requested the order of sale   or the attorney representing that taxing unit for the collection of   delinquent taxes, and the officer charged with selling the property   not later than the fifth day before the date of the sale.  After an   affidavit is delivered under this subsection, the property may not   be sold at a tax sale until the 181st day after the date the   collector for the taxing unit delivers a notice of delinquency of   the taxes following the date the individual no longer owns and   occupies the property as a residence homestead.  If property is sold   in violation of this section, the property owner may file a motion   to set aside the sale under the same cause number and in the same   court as a judgment reference in the order of sale.  The motion must   be filed during the applicable redemption period as set forth in   Section 34.21(a) or (d-1) or, if the property is bid off to a taxing   entity, on or before the 180th day following the date the taxing   unit's deed is filed of record, whichever is later.  This right is   not transferable to a third party.          SECTION 3.  The change in law made by this Act applies only   to the redemption of real property sold or bid off at a tax sale for   which the deed from the sale or transfer is filed for record on or   after the effective date of this Act. The redemption of real   property sold or bid off at a tax sale for which the deed from the   sale or transfer is filed for record before the effective date of   this Act is governed by the law in effect when the deed is filed, and   the former law is continued in effect for that purpose.          SECTION 4.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, to lengthen the period for redeeming the   residence homestead of a person 65 years of age or older sold at an   ad valorem tax sale is approved by the voters. If that amendment is   not approved by the voters, this Act has no effect.