HB3710 - Relating to the effect of a tax certificate accompanying a transfer of certain property.

  89R12974 JBD-F     By: Darby H.B. No. 3710       A BILL TO BE ENTITLED   AN ACT   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 [ Subsection ] (c) and   (d) [ of this section ], if a person transfers property accompanied   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.