Monitoring the Session

SB 2173

clean tax certificate wipes out the lien

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Sen. Tan ParkerRSenate 12

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the effect of a tax certificate accompanying a transfer of certain property.

Caption from analyzed text · version I.

Summary

Even back taxes from a wrongly granted homestead exemption.

The bill says that when a buyer gets a tax certificate showing no back taxes owed, the tax lien is wiped out even if those back taxes came from a homestead exemption that was wrongly granted and later canceled. That protection does not apply when the sale was between close relatives, an employer and employee, a parent company and its subsidiary, or a trust and its beneficiary, as determined by the chief appraiser or tax collector. Innocent buyers keep clean title, while insider transfers cannot be used to wash away back taxes from a bad homestead exemption, and the original owner stays personally liable either way.

Receipt

The receipt

89R-SB2173 · 2025-03-10

SOLD BY

Sen. Tan ParkerRSenate 12

ITEM

relating to the effect of a tax certificate accompanying a transfer of certain property.

WHAT IT DOES

Even back taxes from a wrongly granted homestead exemption.

The bill says that when a buyer gets a tax certificate showing no back taxes owed, the tax lien is wiped out even if those back taxes came from a homestead exemption that was wrongly granted and later canceled. That protection does not apply when the sale was between close relatives, an employer and employee, a parent company and its subsidiary, or a trust and its beneficiary, as determined by the chief appraiser or tax collector. Innocent buyers keep clean title, while insider transfers cannot be used to wash away back taxes from a bad homestead exemption, and the original owner stays personally liable either way.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 11, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Local Government
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Left pending in committee
  9. Considered in public hearing
  10. Vote taken in committee
  11. Reported favorably w/o amendments
  12. Recommended for local & uncontested calendar
  13. Committee report printed and distributed
  14. Placed on intent calendar
  15. Placed on local & uncontested calendar
  16. Not again placed on intent calendar
  17. Laid before the Senate
  18. Read 2nd time & passed to engrossment
  19. Vote recorded in Journal
  20. Three day rule suspended
  21. Record vote
  22. Read 3rd time
  23. Passed
  24. Record vote
  25. Reported engrossed
  26. Received from the Senate
  27. Read first time
  28. Referred to Ways & Means
  29. Considered in formal meeting
  30. Reported favorably w/o amendment(s)
  31. Comte report filed with Committee Coordinator
  32. Committee report distributed
  33. Committee report sent to Calendars
  34. Laid out in lieu of companion HB 3710
  35. Read 2nd time
  36. Passed to 3rd reading
  37. Record vote RV#2579
  38. Statement(s) of vote recorded in Journal
  39. Read 3rd time
  40. Passed
  41. Record vote RV#2607
  42. Statement(s) of vote recorded in Journal
  43. House passage reported
  44. Reported enrolled
  45. Signed in the Senate
  46. Signed in the House
  47. Sent to the Governor
  48. Signed by the Governor
  49. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 140 yea · 0 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 15, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 1, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Tan Parker

Donors

Texas Stock Exchange | TXSE Group PAC$40KTexas REALTORS Political Action Committee$25KThe Peck Family Trust$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Jun 29, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Stock Exchange | TXSE Group PAC$40,000.00

Texas Stock Exchange | TXSE Group PAC

$40,000.00

Cash
$40,000.00
Paid by others
$0.00
Total
$40,000.00

Also funds 10 other sitting lawmakers.

Derived recipient stock · Feb 17, 2026 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 17, 2026 to Jun 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060289.

Texas REALTORS Political Action Committee$25,250.00

Texas REALTORS Political Action Committee

$25,250.00

Cash
$25,000.00
Paid by others
$250.00
Total
$25,250.00
fundraiser $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Oct 9, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801, 101009904, 101031351.

The Peck Family Trust$25,000.00

The Peck Family Trust

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Sep 18, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 14, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Stock Exchange | TXSE Group PAC

$40,000.00

Cash
$40,000.00
Paid by others
$0.00
Total
$40,000.00

Also funds 10 other sitting lawmakers.

Derived recipient stock · Feb 17, 2026 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 17, 2026 to Jun 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060289.

×

Texas REALTORS Political Action Committee

$25,250.00

Cash
$25,000.00
Paid by others
$250.00
Total
$25,250.00
fundraiser $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Oct 9, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801, 101009904, 101031351.

×

The Peck Family Trust

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Sep 18, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 14, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986801.

Votes5

House May 15, 2025

Yea
140
Nay
0
Present, not voting
3
Absent
2
Excused
5
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2607

SB 2173 was passed by (Record 2607): 140 Yeas, 0 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 140 (published)
  • Nay: 0 (published)
  • Present, not voting: 3 (published)
  • Absent: 2 (derived from named list)
  • Excused: 5 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 14, 2025

Yea
135
Nay
0
Present, not voting
2
Absent
7
Excused
6
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2579

SB 2173 was passed to third reading by (Record 2579): 135 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 135 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 7 (derived from named list)
  • Excused: 6 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 1, 2025

Final passage

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.

Sources

SB 2173 (Parker) Relating to the effect of a tax certificate accompanying a transfer of certain property. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 1, 2025

Suspension of the three-day rule

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.

Sources

SB 2173 (Parker) Relating to the effect of a tax certificate accompanying a transfer of certain property. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 1, 2025

Passage to engrossment

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records passage to engrossment. Repeated tallies belong to separate votes.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

SB 2173 (Parker) Relating to the effect of a tax certificate accompanying a transfer of certain property. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses4
For
4
Against
0
On
0
Names

For

  • Harris County Commissioners Court1 registration
  • Self; Office of Nueces County Tax Assessor Collector, Kevin Kieschnick1 registration
  • Texas Land Title Association1 registration
  • Texas Realtors1 registration
Sources

4 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 11, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 10, 2025

05/28/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Sponsors
Drew DarbyRHouse 72

House committee · Ways & Means · Committee vote 13 aye, 0 nay · Out of committee

Senate committee · Local Government · Committee vote 7 aye, 0 nay · Out of committee

Companion

HB 3710 by Darby (identical)

Subjects

Property Interests--Homestead

Property Interests--Mortgages & Liens

Taxation--Property-Appraisals & Appraisal Districts

Taxation--Property-Assessment & Collection

Taxation--Property-Exemptions

Text

The text as introduced · 449 words

89R12974 JBD-F

By: Parker
S.B. No. 2173

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.