TAX CODE
CHAPTER 113. TAX LIENS
SUBCHAPTER A. FILING AND RELEASE OF STATE TAX LIENS
§ 113.001. TAX LIABILITY SECURED BY LIEN. (a) All
taxes, fines, interest, and penalties due by a person to the state
under this title are secured by a lien on all of the person's
property that is subject to execution.
(b) The lien for taxes attaches to all of the property of a
person liable for the taxes.
Acts 1981, 67th Leg., p. 1518, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 37, § 2, eff. Aug. 26, 1985.
§ 113.002. TAX LIEN NOTICE. (a) The comptroller shall
issue and file a tax lien notice required by this chapter.
(b) A tax lien notice must include the following
information:
(1) the name and address of the taxpayer;
(2) the type of tax that is owing;
(3) each period for which the tax is claimed to be
delinquent; and
(4) the amount of tax only due for each period,
excluding the amount of any penalty, interest, or other charge.
(c) A tax lien notice may include other relevant information
that the comptroller considers proper.
Acts 1981, 67th Leg., p. 1518, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.0021. APPLICATION TO OTHER TAXES AND FEES. This
chapter also applies to a tax or fee that the comptroller is
required to collect under a law not included in this title.
Added by Acts 1991, 72nd Leg., ch. 705, § 8, eff. Sept. 1, 1991.
§ 113.003. EXECUTION OF DOCUMENTS. The comptroller may
execute, certify, authenticate, or sign any instrument authorized
under this chapter to be issued by the comptroller or under the
comptroller's authority with a facsimile signature and seal.
Acts 1981, 67th Leg., p. 1518, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.004. STATE TAX LIEN BOOK. The county clerk of
each county shall provide at the expense of the county a well-bound
book, entitled "State Tax Liens," in which notices of state tax
liens filed by the comptroller are recorded.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.005. DUTIES OF COUNTY CLERK. (a) On receipt of a
tax lien notice from the comptroller, the county clerk shall
immediately:
(1) record the notice in the state tax lien book;
(2) note on the notice the date and hour of its
recording;
(3) enter in an alphabetical index the name of each
person to whom the notice applies, along with the volume and page
number of the state tax lien book where the notice is recorded;
(4) furnish to the comptroller, on a form prescribed
by the comptroller, a notice showing that the tax lien notice is
recorded and filed, the date and hour of its recording and filing,
and the volume and page number of the state tax lien book where the
lien is recorded; and
(5) send the comptroller a statement of the fee due for
recording and indexing the lien.
(b) This section prevails over conflicting provisions of
other law.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.006. EFFECT OF FILING TAX LIEN NOTICE. (a) The
filing and recording of a tax lien notice constitutes a record of
the notice.
(b) One tax lien notice is sufficient to cover all taxes of
any nature administered by the comptroller, including penalty and
interest computed by reference to the amount of tax, that may have
accrued before or after the filing of the notice.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 1040, § 10, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 209, § 15, eff. Oct. 1, 2003.
§ 113.007. EVIDENCE OF TAX PAYMENT. A payment in whole
or in part of a tax secured by a state tax lien may be evidenced by a
receipt, acknowledgment, or release signed by an authorized
representative of the state agency that filed the lien.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.008. RELEASE OF LIEN ON SPECIFIC
PROPERTY. (a) With the approval of the attorney general, the
comptroller may release a state tax lien on specific real or
personal property when payment of the reasonable cash market value
of the property is made to the comptroller.
(b) The value of the property to be released shall be
determined in the manner prescribed by the comptroller.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.009. FILING OF TAX LIEN RELEASE. (a) A tax lien
release shall be filed in the office of the county clerk in the
manner that other releases are filed. On the filing of a release,
the county clerk shall release the state tax lien filed with the
clerk in accordance with the regulations of the clerk's office.
(b) The county clerk may send the comptroller a statement of
the customary fee due for the filing and indexing of the release of
the tax lien notice, and the comptroller may pay the fee charged.
The comptroller may collect the amount of the fee paid under this
subsection by the comptroller from the taxpayer against whom the
lien was filed.
(c) A state tax lien filed under this chapter may not be
released fully until the taxpayer pays all other taxes, penalties,
interest, fees, or sums that the taxpayer owes the state and that
are administered or collected by the comptroller.
Acts 1981, 67th Leg., p. 1519, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 460, ch. 94, § 5, eff. May 10,
1983; Acts 2001, 77th Leg., ch. 442, § 7, eff. Sept. 1, 2001.
§ 113.010. RELEASE OF LIEN BY ASSIGNEE. A release in
whole or in part by an assignee of the state's claim for a tax and of
its tax lien or of a judgment for a tax secured by a tax lien may be
filed and recorded with the county clerk for the same fee and in the
same manner as a release by the comptroller or by another state
agency that may file a notice of a lien in the state tax lien
records.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF
TRANSPORTATION. The comptroller shall furnish to the Texas
Department of Transportation each release of a tax lien filed by the
comptroller with that department.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1995, 74th Leg., ch. 165, § 22(69), eff. Sept. 1,
1995.
SUBCHAPTER B. APPLICATIONS AND STATUS OF STATE TAX LIENS
§ 113.101. APPLICABILITY OF LIEN BEFORE
FILING. (a) No lien created by this title is effective against a
person listed in Subsection (b) of this section who acquires a lien,
title, or other right or interest in property before the filing,
recording, and indexing of the lien:
(1) on real property, in the county where the property
is located; or
(2) on personal property, in the county where the
taxpayer resided at the time the tax became due and payable or in
the county where the taxpayer filed the report.
(b) This section applies to a bona fide purchaser,
mortgagee, holder of a deed of trust, judgment creditor, or any
other person who acquired the lien, title, or right or interest in
the property for bona fide consideration.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.102. APPLICABILITY OF LIEN TO MERCHANDISE
PURCHASED. No lien created by this title is effective against a
bona fide purchaser for value of goods, wares, or merchandise daily
exposed for sale in the regular course of business if the purchase
and actual or constructive possession of the goods, wares, or
merchandise is completed before the goods, wares, or merchandise
are seized under a valid legal writ or other lawful process.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.103. APPLICABILITY OF LIEN TO FINANCIAL
INSTITUTIONS. (a) A bank or savings and loan institution is not
required to recognize the claim of the state to a deposit or to
withhold payment of a deposit to a depositor or to the depositor's
order unless the bank or institution has been served by the
comptroller with a notice of the state's claim.
(b) Notice of a state claim must be in writing and be served
by certified mail to the bank or institution or served personally on
the president or any vice-president, cashier, or assistant cashier
of the bank or institution.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.104. PREFERENTIAL TRANSFERS. (a) The
comptroller may recover in a suit brought in Travis County by the
attorney general the property or the value of property transferred
in a preferential transfer.
(b) The transfer of property or an interest in property by a
person who at the time of the transfer is insolvent and has received
or withheld money as a tax under this title or who is delinquent in
the payment of a tax imposed by this title is a preferential
transfer if the transfer occurred during the six-month period
before the date of the filing of a tax lien notice against the
transferor as permitted by this chapter and if the transfer is made
with intent to defraud the state. The transfer of the property or
the interest in property without adequate and sufficient
consideration creates a rebuttable presumption that the transfer
was made with intent to defraud the state. A transfer with
sufficient consideration creates a rebuttable presumption that the
transfer was not made with intent to defraud the state.
(c) All property subject to execution of a transferee in a
preferential transfer is subject to a prior lien in favor of the
state to secure the recovery of the value of the property
transferred in a preferential transfer.
(d) The remedies provided by this section are cumulative of
other remedies of the comptroller as a creditor.
Acts 1981, 67th Leg., p. 1520, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.105. TAX LIEN; PERIOD OF VALIDITY. (a) The
state tax lien on personal property and real estate continues until
the taxes secured by the lien are paid.
(b) The state tax lien on personal property and real estate
attaches to personal property and real estate owned by the taxpayer
beginning on the first day of the period for which the lien is filed
by the state.
Acts 1981, 67th Leg., p. 1521, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 37, § 1, eff. Aug. 26, 1985;
Acts 1987, 70th Leg., 2nd C.S., ch. 1, § 9, eff. July 21, 1987;
Acts 2001, 77th Leg., ch. 442, § 8, eff. Sept. 1, 2001.
§ 113.106. LIEN; SUIT TO DETERMINE VALIDITY. (a) In
an action to determine the validity of a state tax lien, the lien
shall be:
(1) perpetuated and foreclosed; or
(2) nullified.
(b) If a lien is perpetuated and foreclosed, no further
action or notice on the judgment is required, and the notice of the
state tax lien on record continues in effect.
(c) If all or part of a lien is nullified, a certified copy
of the judgment may be filed with the county clerk of the county
where the tax lien notice was filed and may be recorded in the same
manner as a release by the comptroller.
(d) Execution, order for sale, or other process for the
enforcement of the lien may be issued on the judgment at any time.
Acts 1981, 67th Leg., p. 1521, ch. 389, § 1, eff. Jan. 1, 1982.
§ 113.107. ASSIGNMENT OF JUDGMENT ON LIEN. (a) A
judgment perpetuating and foreclosing a tax lien may be transferred
and assigned for the amount of the taxes covered in the judgment and
may be reassigned by a subsequent holder.
(b) An assignment shall be filed and recorded and shall be
released in the same manner as are liens before judgment.
(c) If notice of the assignment is given as provided by
Subchapter E of Chapter 111 of this code, the assignee is fully
subrogated to and succeeds to all rights, liens, and remedies of the
state.
Acts 1981, 67th Leg., p. 1521, ch. 389, § 1, eff. Jan. 1, 1982.
