Bill > HB3710

This bill modifies the Texas Tax Code to address situations involving tax certificates during property transfers, specifically when a tax certificate erroneously indicates no delinquent taxes are due. Under the proposed changes, if a property is transferred with a tax certificate that incorrectly suggests no taxes are owed, the tax lien is typically extinguished, and the new property purchaser is absolved of liability for those taxes. However, the bill introduces an important exception: if the property transfer occurs between certain closely related parties (such as family members within the first degree, an employer and employee, a parent and subsidiary company, or a trust and its beneficiary), and the tax certificate erroneously omitted taxes due to a canceled homestead exemption, the tax lien will not be extinguished. In such cases, the taxing unit can still pursue delinquent taxes, penalties, and interest. The changes will apply only to tax certificates issued on or after the bill's effective date of September 1, 2025, ensuring that existing certificates are not retroactively impacted.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3710