Bill > HB3581

This bill modifies Texas tax code provisions related to property redemption for elderly homeowners, specifically extending the redemption period from two to four years for individuals who are 65 years of age or older and whose primary residence homestead was sold at a tax sale. Under the current law, property owners have two years to redeem their property after a tax sale by paying the purchaser the bid amount plus additional fees and a premium (25% in the first year, 50% in the second year). The new provision allows elderly homeowners an additional two years to redeem their property, meaning they can reclaim their home up to four years after the initial sale, with the same premium structure applying. The bill also updates related sections of the tax code to reflect this change, ensuring consistency in legal language. Importantly, this bill will only take effect on January 1, 2026, and is contingent upon voter approval of a related constitutional amendment. The changes will apply only to property deeds filed for record on or after the effective date, meaning properties sold before that time will be governed by the existing law.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3581