HBA-GUM H.B. 3405 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3405
By: Williams
Ways & Means
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Current law allows a county tax assessor-collector to seize a person's
personal property for the payment of delinquent tax, penalty, and interest
owed a taxing unit.  When executing a tax warrant, in some instances, the
assessor-collector discovers the state is owed sales taxes as well.  H.B.
3405 authorizes the assessor-collector, with written confirmation from the
comptroller, to include with the seizure and sale an amount equal to the
taxes owed to the state. This bill also requires a court to direct that the
property described in the warrant be seized in a specified amount, and sets
forth the manner in which the proceeds are to be distributed. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 33, Tax Code, by adding Section
33.08, as follows: 

Sec. 33.08  SEIZURE AND SALE OF PROPERTY FOR DELINQUENT STATE TAXES,
PENALTIES, AND INTEREST.  (a)  Authorizes a tax collector, in an
application for a warrant under Suchapter B (Seizure of Personal Property)
or E (Seizure of Real Property), to apply for seizure of the property to
collect delinquent taxes, penalties, and interest owing under Title 2
(State Taxation) for which the owner of the property is liable, if the
specified requirements concerning notice and comptroller certification and
attorney general and comptroller approval under this section are satisfied.

(b)  Requires a court, upon finding on application for the warrant that the
requirements of Subsection (a) have been satisfied, to direct that the
property described in the warrant be seized for the payment in the amount
specified under this subsection. 

(c)  Provides that the proceeds, on sale of the property, be applied in the
manner prescribed by Section 34.02 (Distribution of Proceeds).  Requires
the officer making the sale, after payment of costs and distribution of the
proceeds of the sale to the entitled taxing units, to transfer to the
Comptroller of Public Accounts the amount of the remainder to satisfy
delinquent liability under Subsection (a) before paying the excess proceeds
to the clerk of the court under Section 34.02(c). 

SECTION 2.  Emergency clause.
  Effective date: upon passage.