HBA-KDB H.B. 3347 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3347 By: Gray Ways & Means 4/12/2001 Introduced BACKGROUND AND PURPOSE Under current law, a taxing unit engaged in the collection of delinquent taxes is not allowed access to rendition statements made by the owners of property on which there are delinquent taxes due. This access may give both taxpayers and tax collectors an opportunity to resolve collection issues without the added expense of litigation. In addition, there is concern that the evidentiary requirements in delinquent ad valorem tax collection procedures are burdensome and should be clarified to include only the portions of the delinquent tax roll which are relevant to the property subject to the collection process. Also, current law may not allow every defendant who has an interest in the property to be served with citation. Out-of-state lienholders may lose their interests in property subject to tax foreclosure. House Bill 3347 authorizes a taxing unit or its representative in delinquent property tax cases to access the rendition statement made by the owners of the property, provides that only the delinquent tax roll or a compilation of the pertinent portion of the delinquent tax roll is evidence in a tax collection case instead of introducing the entire current and delinquent tax rolls, and extends jurisdiction to a defendant who owns, has, or claims any interest in the property which is the subject of the suit. 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 3347 amends the Tax Code to authorize rendition statements made by property owners that are confidential to be disclosed to a taxing unit or its legal representative that is engaged in the collection of delinquent taxes on the property that is the subject of the information. The bill authorizes the chief appraiser to change the appraisal roll at any time to correct a determination of ownership or multiple appraisals of a property. The bill authorizes the appraisal review board, at any time on motion of the chief appraiser or of a property owner, to direct by written order changes in the appraisal roll to correct multiple appraisals of a property in a tax year. At any time before the end of five years after January 1 of the tax year for which the change is sought, the appraisal review board is authorized, on motion of the chief appraiser or of a property owner, to direct by written order changes in the appraisal roll to correct clerical errors that affect a property owner's liability for a tax or the inclusion of property that does not exist in the form or at the location described in the appraisal roll. The bill requires a peace officer, in addition to the collector, after the tax warrant is issued, to take possession of and secure the property pending its sale. The bill authorizes the property to be secured at the premises where it is seized or to be removed to a more convenient location. The bill provides that any person who surrenders property because a tax warrant is issued against the person who owns the property is not liable for surrendering the property. On surrender, the bill requires the collector to provide to the person surrendering property a sworn receipt with a description of the property surrendered. These provisions do not create an obligation on the part of a person having possession of property of a person against whom a tax warrant is issued that exceeds or materially differs from the person's obligation to the person against whom the tax warrant is issued. The bill requires a court of competent jurisdiction, in a suit to collect a delinquent tax, to grant a taxing unit injunctive relief on a showing that the personal property on which the taxing unit seeks to foreclose a tax lien is about to be removed from the county in which the tax was imposed or transferred to another person and the other person is not a buyer in the ordinary course of business. Such injunctive relief must prohibit alienation or dissipation of the property, order that proceeds from the sale of the property in an amount equal to the taxes claimed to be due be paid into the court registry, or order any other relief to ensure the payment of the taxes owed. The taxing unit that petitions for injunctive relief is authorized to also seek to secure the payment of taxes for a current tax year that are not delinquent and is required to estimate the amount due if those taxes are not yet assessed. The bill provides that the tax lien attaches to any amounts paid into the court's registry with the same priority as for the property on which taxes are owed. The bill provides that, in a suit to collect a delinquent tax, the taxing unit's delinquent tax roll, the applicable portion of the taxing unit's delinquent tax roll, or a compilation of that portion, or a copy of the applicable entries on the taxing unit's delinquent tax roll certified by the collector or the collector's deputy, rather than the taxing unit's entire current tax roll and delinquent tax roll or certified copies of the entries, constitutes prima facie evidence that each person charged with a duty relating to the imposition of the tax has complied with all requirements of law and that the amount of tax alleged to be delinquent against the property and the amount of penalties and interest due on that tax as listed are the correct amounts. The bill extends jurisdiction under the long-arm statute to a defendant who owns, has, or claims any interest in the property which is the subject of the suit. EFFECTIVE DATE September 1, 2001.