Bill: SB 1725, 84(R) - 2015

Committee

Senate Finance

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Yes Neutral Positive Neutral Positive Neutral

Author(s)

Brandon Creighton

Bill Caption

Relating to notice of excess proceeds following an ad valorem tax sale.

Fiscal Notes

A fiscal note dated April 8, 2015 anticipates no fiscal implication to the State or units of local government.

Bill Analysis

Senate Bill 1725 would amend Section 34.03 of the Tax Code related to the disposition of excess proceeds after the tax sale of a property to require that the clerk of a court notify the attorney general of the deposit and amount of excess proceeds, regardless of the amount, if the attorney general or a state agency represented by the attorney general is named as an in rem defendant in the underlying suit for seizure of the property or foreclosure of a tax lien on the property.

Vote Recommendation Notes

Under current law, when a tax sale of real property is concluded, and proceeds have been distributed according to the law, any excess amount must be paid to the clerk of the court issuing the warrant or order of sale (Section 34.02, Tax Code).

If this amount is in excess of $25, the clerk must notify the former owner of the property of the excess amount and of the former owner's right to claim it.

By adding the requirement to notify the attorney general if the attorney general or a state agency represented by the attorney general is named as an in rem defendant, the attorney general would know when to possibly file a claim to the excess proceeds in the case where the former property owner owes child support or owes arrearages. Since the attorney general is already allowed to file this claim under Section 34.04 of the Tax Code, Senate Bill 1725 only streamlines the process of recovering child support owed. As a consequence, we support this bill.

Source URL (retrieved on 04/26/2024 01:04 AM): http://reports.texasaction.com/bill/84r/sb1725?print_view=true