85(R) - 2017
Relating to the effect of a sale of property on the tax lien on the property to secure the payment of taxes, penalties, and interest imposed on the property as a result of the addition to the appraisal roll of property or appraised value that was erroneously exempted in a prior year.
Passage of the bill would prohibit the enforcement of a tax lien on a property that had an erroneous exemption in a prior year, was added to the appraisal roll, and then sold in an arm's length transaction to an unrelated person. In some instances, this would prevent the collection of taxes that would otherwise be collected because a taxing unit would be unable to foreclose on the property resulting in a cost to the state through the operation of the school finance formulas.
SB 1745 would mandate that a tax lien may not be enforced against a property the chief appraiser added to the tax roll that was erroneously exempted in a prior tax year to secure payment, along with other conditions as a result of the error.
Vote Recommendation Notes
This bill upholds our commitment to property rights and limited government by not holding property owners responsible for the mistakes of government. We support, SB 1745.