HBA-CBW H.B. 2473 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2473
By: Homer
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, before the final process of selling real property at an ad
valorem tax sale, property may lie dormant on the tax roll for many years.
During this dormancy period, notices are filed in an effort to identify
owners and to collect back taxes.  House Bill 2473 reduces the period from
one year to six months in which an owner may redeem real property that has
been sold at an ad valorem tax sale.  

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. 

ANALYSIS

House Bill 2473 amends the Tax Code to authorize the owner of a homestead
residence on agricultural land sold at a tax sale to a purchaser other than
a taxing unit or bid off to a taxing unit and not resold  to redeem the
property on or before the first,  rather than the second,  anniversary of
the date on which the purchaser's deed is filed for record.  The owner is
to pay the purchaser a redemption premium of 25 percent of the aggregate
total if the property is redeemed during the first six months of the
redemption period or 50 percent of the aggregate total during the second
six months, rather than  the second year.  The bill provides that the
owner's right of redemption may be exercised not later than the 92nd day,
rather than the 180th day. 

EFFECTIVE DATE

January 1, 2002, only if the constitutional amendment to shorten the period
in which the former owner of real property sold at an ad valorem tax sale
is approved by the voters.