TAX CODE
CHAPTER 32. TAX LIENS AND PERSONAL LIABILITY
§ 32.01. TAX LIEN. (a) On January 1 of each year, a tax
lien attaches to property to secure the payment of all taxes,
penalties, and interest ultimately imposed for the year on the
property, whether or not the taxes are imposed in the year the lien
attaches. The lien exists in favor of each taxing unit having power
to tax the property.
(b) A tax lien on inventory, furniture, equipment, or other
personal property is a lien in solido and attaches to all inventory,
furniture, equipment, and other personal property that the property
owner owns on January 1 of the year the lien attaches or that the
property owner subsequently acquires.
(c) If an owner's real property is described with certainty
by metes and bounds in one or more instruments of conveyance and
part of that property is the owner's residence homestead taxed
separately and apart from the remainder of the property, each of the
liens under this section that secures the taxes imposed on that
homestead and on the remainder of that property extends in solido to
all the real property described in the instrument or instruments of
conveyance, unless the homestead is identified as a separate parcel
and is separately described in the conveyance or another instrument
recorded in the real property records.
(d) The lien under this section is perfected on attachment
and, except as provided by Section 32.03(b), perfection requires no
further action by the taxing unit.
Acts 1979, 66th Leg., p. 2287, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, § 22, eff.
Aug. 29, 1983; Acts 1993, 73rd Leg., ch. 1031, § 3, eff. Sept. 1,
1993; Acts 1999, 76th Leg., ch. 1481, § 11, eff. Jan. 1, 2000.
§ 32.014. TAX LIEN ON MANUFACTURED HOME. (a) If a
manufactured home is listed together with the land on which the
manufactured home is located under Section 25.08, the tax lien
attaches to the land on which the manufactured home is located.
(b) If a manufactured home is listed separately from the
land on which the manufactured home is located, the tax lien on the
manufactured home does not attach to the land on which the home is
located.
(c) In this section, "manufactured home" has the meaning
assigned by Section 1201.003, Occupations Code.
(d) If a manufactured home is listed together with the land
on which the manufactured home is located, a taxing unit with
jurisdiction to impose taxes on the land may place a lien on the
manufactured home to secure payment of those taxes to the same
extent that it can place a lien on the land. If a home is moved from
its location and a new statement of ownership and location is not
issued under Section 1201.207, Occupations Code, a taxing unit with
jurisdiction to impose taxes on the land on which the manufactured
home was located retains the right to record and enforce liens on
that home to secure the payment of taxes, regardless of where the
home is currently located.
(e) This section prevails over Chapter 1201, Occupations
Code, to the extent of any conflict.
Added by Acts 1987, 70th Leg., ch. 633, § 2, eff. Aug. 31, 1987.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.02(b), eff. Aug. 28,
1989; Acts 1989, 71st Leg., ch. 1039, § 4.04, eff. Sept. 1,
1989; Acts 1995, 74th Leg., ch. 978, § 20, eff. Sept. 1, 1995;
Acts 2001, 77th Leg., ch. 1055, § 8, eff. Jan. 1, 2002; Acts
2003, 78th Leg., ch. 338, § 46, eff. Jan. 1, 2004; Acts 2003,
78th Leg., ch. 1276, § 14A.813, eff. Sept. 1, 2003.
§ 32.015. TAX LIEN ON MANUFACTURED HOME. (a) On
payment of the taxes, penalties, and interest for a year for which a
valid tax lien filed before September 1, 2001, has been recorded on
the title records of the department, the collector for the taxing
unit shall issue a tax certificate showing no taxes due or a tax
paid receipt for such year to the person making payment. When the
tax certificate showing no taxes due or tax paid receipt is filed
with the department, the tax lien is extinguished and canceled and
shall be removed from the title records of the manufactured home.
The collector for a taxing unit may not refuse to issue a tax paid
receipt to the person who offers to pay the taxes, penalties, and
interest for a particular year or years, even though taxes may also
be due for another year or other years.
(b) In this section, "department" and "manufactured home"
have the meanings assigned by Section 1201.003, Occupations Code;
however, the term "manufactured home" does not include a
manufactured home that has been attached to real property and for
which the document of title has been canceled under Section
1201.217 of that code.
Added by Acts 1985, 69th Leg., ch. 846, § 15, eff. Sept. 1, 1985.
Amended by Acts 1987, 70th Leg., ch. 1134, § 22, eff. June 18,
1987; Acts 1989, 71st Leg., ch. 1039, § 4.05, eff. Sept. 1,
1989; Acts 1991, 72nd Leg., ch. 617, § 11, eff. Aug. 26, 1991;
Acts 1995, 74th Leg., ch. 978, § 21, eff. Sept. 1, 1995; Acts
1999, 76th Leg., ch. 1481, § 12, eff. Jan. 1, 2000; Acts 2001,
77th Leg., ch. 988, § 2, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 1276, § 14A.814, eff. Sept. 1, 2003.
§ 32.02. RESTRICTIONS ON A MINERAL INTEREST TAX
LIEN. (a) If a mineral estate is severed from a surface estate
and if different persons own the mineral estate and surface estate,
the lien resulting from taxes imposed against each interest in the
mineral estate exists only for the duration of the interest it
encumbers. After an interest in the mineral estate terminates, the
lien encumbering it expires and is not enforceable:
(1) against any part of the surface estate not owned by
the owner of the interest encumbered by the lien;
(2) against any part of the mineral estate not owned by
the owner of the interest encumbered by the lien; or
(3) against the owner of the surface estate as a
personal obligation, unless he also owns the interest encumbered by
the lien.
(b) Taxes imposed on a severed interest in a mineral estate
that has terminated remain the personal liability of the person who
owned the interest on January 1 of the year for which the tax was
imposed.
Acts 1979, 66th Leg., p. 2287, ch. 841, § 1, eff. Jan. 1, 1982.
§ 32.03. RESTRICTIONS ON PERSONAL PROPERTY TAX
LIEN. (a) A tax lien may not be enforced against personal
property transferred to a buyer in ordinary course of business as
defined by Section 1.201(9) of the Business & Commerce Code for
value who does not have actual notice of the existence of the lien
or, if the personal property is a manufactured home, who does not
have constructive notice of the existence of the lien.
(b) A bona fide purchaser for value or the holder of a lien
recorded on the manufactured home document of title is not required
to pay any taxes imposed in a tax year that begins before January 1,
2001, or penalties or interest on those taxes except for each year
for which a valid tax lien was duly filed and recorded under Section
32.015, as that section existed on the date the lien was filed, and
each year for which the owner of the manufactured home had
constructive notice of the taxes under Section 32.015(e), as that
section existed before September 1, 2001. The effect and priority
of a tax lien that attaches to secure the payment of taxes imposed
on a manufactured home in a tax year that begins on or after January
1, 2001, are those established by Sections 32.01 and 32.05. In this
section, "manufactured home" has the meaning assigned by Section
32.015(b).
(c) Except to the extent that tax liability for a year
exceeds the amount computed under Subsection (j)(2), a bona fide
purchaser for value or the holder of a lien recorded on a
manufactured home document of title is not required to pay any taxes
imposed on the manufactured home in a tax year that begins on or
after January 1, 2001, or penalties or interest on those taxes, if
the chief appraiser of the appraisal district established for the
county in which the manufactured home is located, in connection
with an application for a permit to transport the manufactured home
under Section 623.093(d), Transportation Code, has issued a written
statement that no unpaid taxes have been reported on the
manufactured home due any taxing unit for which the appraisal
district appraises property.
(d) On request of any person, a chief appraiser shall issue
a written statement as to whether the chief appraiser has received
notice of any taxes on a manufactured home located in the appraisal
district due any taxing unit for which the appraisal district
appraises property. A request for the issuance of a statement by
the chief appraiser under this subsection must:
(1) be in writing and signed by the person requesting
the statement;
(2) identify the location of the manufactured home
sufficiently for the chief appraiser to determine whether the
manufactured home is listed on the current appraisal roll; and
(3) specify the address where the chief appraiser
should send the statement.
(e) On receipt of a request under Subsection (d), the chief
appraiser shall send to the collector for each taxing unit in which
the manufactured home is located a request for information whether
any taxes on the manufactured home are due that taxing unit. The
chief appraiser shall specify the date by which the collector must
respond to the chief appraiser.
(f) Not later than the fifth business day after the date the
chief appraiser receives a request for a statement under Subsection
(d), the chief appraiser shall issue the statement described by
Subsection (d). In issuing the statement, a chief appraiser may
rely on a tax certificate, a written statement by the collector, a
tax bill, or a reproduction of a tax bill provided by the collector
for a taxing unit.
(g) If the chief appraiser receives the appropriate
information from the collector for a taxing unit indicating that
there are unpaid taxes due that taxing unit on the manufactured
home, the chief appraiser shall include in the statement issued
under Subsection (d) the amount of taxes due that taxing unit and
the name and address of the collector for that taxing unit. If the
chief appraiser does not receive information from the collector for
any taxing unit to which the chief appraiser sent a request under
Subsection (e) before the chief appraiser issues the statement
required by Subsection (d), the chief appraiser shall state in the
written statement that the chief appraiser has not received notice
of any taxes on the manufactured home due the taxing units for which
the appraisal district appraises property.
(h) To cover the costs to the appraisal district associated
with the issuance of written statements under this section, a chief
appraiser may charge the person requesting a statement a fee not to
exceed $10 for each statement requested.
(i) A chief appraiser and a county assessor-collector may
enter into a contract that authorizes the assessor-collector to
issue written statements requested under this section. If a chief
appraiser and a county assessor-collector enter into such a
contract, a reference in this section to the chief appraiser means
the county assessor-collector.
(j) For purposes of this section, unpaid taxes due a taxing
unit include:
(1) all unpaid taxes and any penalty and interest due
that taxing unit for a tax year preceding the current tax year; and
(2) for a manufactured home that was located in the
taxing unit on January 1 of the current tax year:
(A) taxes due for the current tax year; or
(B) if taxes for the current tax year have not
been levied by the taxing unit, an estimated amount of taxes
computed by multiplying the taxable value of the manufactured home,
according to the most recent certified appraisal roll for the
taxing unit, by the taxing unit's adopted tax rate for the preceding
tax year.
Acts 1979, 66th Leg., p. 2287, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 846, § 16, eff. Sept. 1,
1985; Acts 1991, 72nd Leg., ch. 617, § 12, eff. Aug. 26, 1991;
Acts 1991, 72nd Leg., ch. 836, § 5.2, eff. Aug. 26, 1991; Acts
1995, 74th Leg., ch. 978, § 22, eff. Sept. 1, 1995; Acts 2001,
77th Leg., ch. 988, § 3, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 338, § 47, eff. Jan. 1, 2004.
§ 32.04. PRIORITIES AMONG TAX LIENS. (a) Whether or
not a tax lien provided by this chapter takes priority over a tax
lien of the United States is determined by federal law. In the
absence of federal law, a tax lien provided by this chapter takes
priority over a tax lien of the United States.
(b) Tax liens provided by this chapter have equal priority.
Acts 1979, 66th Leg., p. 2287, ch. 841, § 1, eff. Jan. 1, 1982.
§ 32.05. PRIORITY OF TAX LIENS OVER OTHER PROPERTY
INTERESTS. (a) A tax lien on real property takes priority over a
homestead interest in the property.
(b) Except as provided by Subsection (c) of this section, a
tax lien provided by this chapter takes priority over the claim of
any creditor of a person whose property is encumbered by the lien
and over the claim of any holder of a lien on property encumbered by
the tax lien, whether or not the debt or lien existed before
attachment of the tax lien.
(c) A tax lien provided by this chapter is inferior to a
claim:
(1) for any survivor's allowance, funeral expenses, or
expenses of the last illness of a decedent made against the estate
of a decedent as provided by law;
(2) under a recorded restrictive covenant running with
the land, other than a restrictive covenant in favor of a property
owners' association or homeowners' association recorded before
January 1 of the year the tax lien arose; or
(3) under a valid easement of record recorded before
January 1 of the year the tax lien arose.
Acts 1979, 66th Leg., p. 2287, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., ch. 854, § 1, eff. June 16,
1991; Acts 1999, 76th Leg., ch. 1481, § 13, eff. Sept. 1, 1999.
§ 32.06. TRANSFER OF TAX LIEN. (a) A person may
authorize another person to pay the taxes imposed by a taxing unit
on the person's real property by filing with the collector for the
unit a sworn document stating the authorization, naming the other
person authorized to pay the taxes, and describing the property.
(b) If a person authorized to pay another's taxes pursuant
to Subsection (a) pays the taxes and any penalties and interest
imposed, the collector shall issue a tax receipt to the person
paying the taxes. In addition, the collector shall certify on the
sworn document that payment of the taxes and any penalties and
interest on the described property has been made by a person other
than the person liable for the taxes when imposed and that the
taxing unit's tax lien is transferred to the person paying the
taxes. The collector shall attach to the document the collector's
seal of office and deliver the document to the person paying the
taxes. The collector shall keep a record of all tax liens
transferred as provided by this section.
(c) Except as otherwise provided by this section, the
transferee of a tax lien and any successor in interest is entitled
to foreclose the lien:
(1) in the manner provided by law for foreclosure of
tax liens; or
(2) in the manner specified in Section 51.002,
Property Code.
(d) To be enforceable, a tax lien transferred as provided by
this section must be recorded in the deed records of each county in
which the property encumbered by the lien is located.
(e) A person holding a tax lien transferred as provided by
this section may not charge a greater rate of interest than 18
percent a year on the taxes, penalties, interest, and recording
expenses paid to acquire and record the lien.
(f) The holder of a preexisting lien on property encumbered
by a tax lien transferred as provided by this section is entitled,
within six months after the date on which the tax lien is recorded
in all counties in which the property is located, to pay the holder
of the tax lien the amount paid for the lien, plus interest accrued
at the rate provided by Subsection (e) and recording expenses, and
becomes subrogated to all rights in the lien.
(g) A suit to foreclose a tax lien transferred as provided
by this section may not be instituted within one year from the date
on which the lien is recorded in all counties in which the property
is located, unless the contract between the owner of the property
and the transferee provides otherwise.
(h) After one year from the date on which a tax lien
transferred as provided by this section is recorded in all counties
in which the property is located, the holder of the lien may file
suit to foreclose the lien unless a contract between the holder of
the lien and the owner of the property encumbered by the lien
provides otherwise. If the suit results in foreclosure of the lien,
the person filing suit is entitled to recover attorney's fees in an
amount not to exceed 10 percent of the judgment. The proceeds of a
sale following foreclosure as provided by this subsection shall be
applied first to the payment of court costs, then to payment of the
judgment, including accrued interest, and then to the payment of
any attorney's fees fixed in the judgment. Any remaining proceeds
shall be paid to other holders of liens on the property in the order
of their priority and then to the person whose property was sold at
the tax sale.
(i) The person whose property is sold as provided by this
section or any person holding a first lien against the property is
entitled, within one year after the date the property is sold, to
redeem the property from the purchaser at the tax sale by paying
that purchaser the tax sale purchase price, plus costs, and
interest accrued on the judgment to the date of redemption or 118
percent of the amount of the judgment, whichever is less. If a
person redeems the property as provided by this subsection, the
purchaser at the tax sale shall deliver a deed to the property to
the person redeeming the property. If the person who owned the
property at the time of foreclosure redeems the property, all liens
existing on the property at the time of the tax sale remain in
effect to the extent not paid from the sale proceeds.
Acts 1979, 66th Leg., p. 2288, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1995, 74th Leg., ch. 131, § 1, eff. Sept. 1,
1995.
§ 32.065. CONTRACT FOR FORECLOSURE OF TAX
LIEN. (a) Section 32.06 does not abridge the right of an owner of
real property to enter into a contract for the payment of taxes with
the holder of a lien on the property, including a transferee under
Section 32.06 or this section, or affect a contract between the
owner and holder of a lien for the payment of taxes on the property.
(b) A contract entered into under Subsection (a) may provide
for:
(1) an event of default; and
(2) notice of acceleration.
(c) Notwithstanding any other provision of this code, a
transferee of a tax lien is subrogated to and is entitled to
exercise any right or remedy possessed by the transferring taxing
unit, including or related to foreclosure or judicial sale.
(d) Chapters 342 and 346, Finance Code, and Section 302.102,
Finance Code, do not apply to a transaction covered by this section.
The transferee of a tax lien under this section is not required to
obtain a license under Title 4, Finance Code.
(e) If in a contract under this section a person contracts
for, charges, or receives a rate or amount of interest that exceeds
the rate or amount allowed by this section, the amount of the
penalty for which the person is obligated is determined in the
manner provided by Chapter 349, Finance Code.
(f) The first written communication by the lender to its
prospective borrower shall disclose the types of possible
additional charges or fees that may be incurred by the borrower in
connection with the loan or contract under this section.
Acts 1979, 66th Leg., p. 2288, ch. 841, § 1, eff. Jan. 1, 1982.
Redesignated from V.T.C.A., Tax Code § 32.06(j) and amended by
Acts 1995, 74th Leg., ch. 131, § 1, eff. Sept. 1, 1995. Amended
by Acts 1997, 75th Leg., ch. 1396, § 39, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 62, § 7.91, eff. Sept. 1, 1999.
§ 32.07. PERSONAL LIABILITY FOR TAX. (a) Except as
provided by Subsections (b) and (c) of this section, property taxes
are the personal obligation of the person who owns or acquires the
property on January 1 of the year for which the tax is imposed. A
person is not relieved of the obligation because he no longer owns
the property.
(b) The person in whose name a property is required to be
listed by Section 25.13 of this code is personally liable for the
taxes imposed on the property.
(c) A qualifying trust as defined by Section 11.13(j) and
each trustor of the trust are jointly and severally liable for the
tax imposed on the interest of the trust in a residence homestead.
(d) Any person who receives or collects an ad valorem tax or
any money represented to be a tax from another person holds the
amount so collected in trust for the benefit of the taxing unit and
is liable to the taxing unit for the full amount collected plus any
accrued penalties and interest on the amount collected.
(e) With respect to an ad valorem tax or other money subject
to the provisions of Subsection (d), an individual who controls or
supervises the collection of tax or money from another person, or an
individual who controls or supervises the accounting for and paying
over of the tax or money, and who wilfully fails to pay or cause to
be paid the tax or money is liable as a responsible individual for
an amount equal to the tax or money, plus all interest, penalties,
and costs, not paid or caused to be paid. The liability imposed by
this subsection is in addition to any other penalty provided by law.
The dissolution of a corporation, association, limited liability
company, or partnership does not affect a responsible individual's
liability under this subsection.
(f) Venue for suits arising under this section shall be
governed by Section 33.41(a).
(g) In this section:
(1) "Responsible individual" includes an officer,
manager, director, or employee or a corporation, association, or
limited liability company or a member of a partnership who, as an
officer, manager, director, employee, or member, is under a duty to
perform an act with respect to the collection, accounting, or
payment of a tax or money subject to the provisions of Subsection
(d).
(2) "Tax" includes any ad valorem tax or money subject
to the provisions of Subsection (d), including the penalty and
interest computed by reference to the amount of the tax or money.
(h) For purposes of Subsection (a), a person is considered
to be an owner of property subject to an installment contract of
sale if the person is:
(1) the seller of the property; or
(2) a purchaser of the property who has the duty under
the installment contract to pay taxes on the property.
Acts 1979, 66th Leg., p. 2289, ch. 841, § 1, eff. Jan. 1, 1980.
Amended by Acts 1993, 73rd Leg., ch. 854, § 4, eff. Jan. 1, 1994;
Acts 1995, 74th Leg., ch. 579, § 10, eff. Jan. 1, 1996; Acts
1997, 75th Leg., ch. 906, § 2, eff. Jan. 1, 1998; Acts 1999, 76th
Leg., ch. 1481, § 14, 15, eff. Jan. 1, 2000.
