Bill > SB2173

This bill modifies the Texas Tax Code regarding tax certificates in property transfers, specifically addressing situations where a tax certificate erroneously indicates no delinquent taxes are due. Under the revised law, when a property is transferred with such a tax certificate, the tax lien is generally extinguished, and the purchaser is absolved of liability for delinquent taxes. However, the bill adds a new provision that prevents the extinguishment of tax liens in certain specific transfer scenarios, such as transfers between close relatives, an employer and employee, parent and subsidiary companies, or between a trust and its beneficiary. In these cases, if a residence homestead exemption was erroneously allowed and later canceled, the tax lien will remain valid, and the taxing unit can still pursue delinquent taxes, penalties, or interest. The changes will apply only to tax certificates issued on or after the bill's effective date of September 1, 2025, with previous tax certificates remaining subject to the prior law.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2173