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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the foreclosure of a lien-free or |
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mortgage-free residence homestead by a local taxing entity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 33.06, Tax Code, is amended by adding |
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Subsections (i), (j), and (k) to read as follows: |
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(i) Notwithstanding any other provision of this code, a |
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local taxing entity, including a county, municipality, school |
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district, or special taxing district, may not initiate foreclosure |
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proceedings against a residence homestead if: |
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(1) the homeowner owns the property outright, with no |
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active mortgage, home equity loan, reverse mortgage, or any other |
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recorded lien held by a financial institution or lender; and |
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(2) the homeowner's delinquent property taxes are less |
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than $25,000, including penalties and interest. |
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(j) If the delinquent property taxes exceed the threshold in |
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Subsection (i)(2), the local taxing entity must first offer the |
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homeowner a structured repayment plan of at least five years before |
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initiating foreclosure proceedings. |
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(k) Any property tax debt less than $25,000 that remains |
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unpaid shall be converted into a non-enforceable tax lien that must |
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be satisfied before the property can be sold, transferred, or |
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inherited. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |