bill giving seniors longer to redeem tax-sold homesteads

The text as introduced · 1,255 words

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.