HJR71 - Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.

  89R1121 MLH-F     By: Schofield H.J.R. No. 71       A JOINT RESOLUTION   proposing a constitutional amendment providing that a residence   homestead is not subject to seizure or sale for delinquent ad   valorem taxes.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 13(a), (c), and (d), Article VIII,   Texas Constitution, are amended to read as follows:          (a)   Except as provided by Section 15(b) of this article,   provision [ Provision ] shall be made by the Legislature for the sale   of a sufficient portion of all lands and other property for the   taxes due thereon that have not been paid.          (c)  The former owner of [ a residence homestead, ] land   designated for agricultural use[ , ] or a mineral interest sold for   unpaid taxes shall within two years from date of the filing for   record of the Purchaser's Deed have the right to redeem the property   on the following basis:                (1)  Within the first year of the redemption period,   upon the payment of the amount of money paid for the property,   including the Tax Deed Recording Fee and all taxes, penalties,   interest, and costs paid plus an amount not exceeding 25 percent of   the aggregate total; and                (2)  Within the last year of the redemption period,   upon the payment of the amount of money paid for the property,   including the Tax Deed Recording Fee and all taxes, penalties,   interest, and costs paid plus an amount not exceeding 50 percent of   the aggregate total.          (d)  If the [ residence homestead or ] land designated for   agricultural use is sold pursuant to a suit to enforce the   collection of the unpaid taxes, the Legislature may limit the   application of Subsection (c) of this section to [ property used as a   residence homestead when the suit was filed and to ] land designated   for agricultural use when the suit was filed.          SECTION 2.  Section 15, Article VIII, Texas Constitution, is   amended to read as follows:          Sec. 15.   (a) Except as provided by Subsection (b) of this   section, the [ The ] annual assessment made upon landed property   shall be a special lien thereon; and all property, both real and   personal, belonging to any delinquent tax payer shall be liable to   seizure and sale for the payment of all the taxes and penalties due   by such delinquent; and such property may be sold for the payment of   the taxes and penalties due by such delinquent, under such   regulations as the Legislature may provide.           (b)     A residence homestead is not subject to seizure or sale   for the payment of delinquent taxes or penalties. The Legislature   by general law may define residence homestead for purposes of this   subsection.          SECTION 3.  Sections 50(a), (e), (f), (f-1), (g), (h), (i),   (j), (k), (q), (r), (t), and (u), Article XVI, Texas Constitution,   are amended to read as follows:          (a)  The homestead of a family, or of a single adult person,   shall be, and is hereby protected from forced sale, for the payment   of all debts except for:                (1)  the purchase money thereof, or a part of such   purchase money;                (2)  [ the taxes due thereon;                [ (3) ]  an owelty of partition imposed against the   entirety of the property by a court order or by a written agreement   of the parties to the partition, including a debt of one spouse in   favor of the other spouse resulting from a division or an award of a   family homestead in a divorce proceeding;                 (3)  [ (4) ]  the refinance of a lien against a homestead,   including a federal tax lien resulting from the tax debt of both   spouses, if the homestead is a family homestead, or from the tax   debt of the owner;                 (4)  [ (5) ]  work and material used in constructing new   improvements thereon, if contracted for in writing, or work and   material used to repair or renovate existing improvements thereon   if:                      (A)  the work and material are contracted for in   writing, with the consent of both spouses, in the case of a family   homestead, given in the same manner as is required in making a sale   and conveyance of the homestead;                      (B)  the contract for the work and material is not   executed by the owner or the owner's spouse before the fifth day   after the owner makes written application for any extension of   credit for the work and material, unless the work and material are   necessary to complete immediate repairs to conditions on the   homestead property that materially affect the health or safety of   the owner or person residing in the homestead and the owner of the   homestead acknowledges such in writing;                      (C)  the contract for the work and material   expressly provides that the owner may rescind the contract without   penalty or charge within three days after the execution of the   contract by all parties, unless the work and material are necessary   to complete immediate repairs to conditions on the homestead   property that materially affect the health or safety of the owner or   person residing in the homestead and the owner of the homestead   acknowledges such in writing; and                      (D)  the contract for the work and material is   executed by the owner and the owner's spouse only at the office of a   third-party lender making an extension of credit for the work and   material, an attorney at law, or a title company;                 (5)  [ (6) ]  an extension of credit that:                      (A)  is secured by a voluntary lien on the   homestead created under a written agreement with the consent of   each owner and each owner's spouse;                      (B)  is of a principal amount that when added to   the aggregate total of the outstanding principal balances of all   other indebtedness secured by valid encumbrances of record against   the homestead does not exceed 80 percent of the fair market value of   the homestead on the date the extension of credit is made;                      (C)  is without recourse for personal liability   against each owner and the spouse of each owner, unless the owner or   spouse obtained the extension of credit by actual fraud;                      (D)  is secured by a lien that may be foreclosed   upon only by a court order;                      (E)  does not require the owner or the owner's   spouse to pay, in addition to any interest or any bona fide discount   points used to buy down the interest rate, any fees to any person   that are necessary to originate, evaluate, maintain, record,   insure, or service the extension of credit that exceed, in the   aggregate, two percent of the original principal amount of the   extension of credit, excluding fees for:                            (i)  an appraisal performed by a third party   appraiser;                            (ii)  a property survey performed by a state   registered or licensed surveyor;                            (iii)  a state base premium for a mortgagee   policy of title insurance with endorsements established in   accordance with state law; or                            (iv)  a title examination report if its cost   is less than the state base premium for a mortgagee policy of title   insurance without endorsements established in accordance with   state law;                      (F)  is not a form of open-end account that may be   debited from time to time or under which credit may be extended from   time to time unless the open-end account is a home equity line of   credit;                      (G)  is payable in advance without penalty or   other charge;                      (H)  is not secured by any additional real or   personal property other than the homestead;                      (I)  (repealed);                      (J)  may not be accelerated because of a decrease   in the market value of the homestead or because of the owner's   default under other indebtedness not secured by a prior valid   encumbrance against the homestead;                      (K)  is the only debt secured by the homestead at   the time the extension of credit is made unless the other debt was   made for a purpose described by Subsections (a)(1)-(a)(4)   [ (a)(1)-(a)(5) ] or Subsection (a)(7) [ (a)(8) ] of this section;                      (L)  is scheduled to be repaid:                            (i)  in substantially equal successive   periodic installments, not more often than every 14 days and not   less often than monthly, beginning no later than two months from the   date the extension of credit is made, each of which equals or   exceeds the amount of accrued interest as of the date of the   scheduled installment; or                            (ii)  if the extension of credit is a home   equity line of credit, in periodic payments described under   Subsection (t)(8) of this section;                      (M)  is closed not before:                            (i)  the 12th day after the later of the date   that the owner of the homestead submits a loan application to the   lender for the extension of credit or the date that the lender   provides the owner a copy of the notice prescribed by Subsection (g)   of this section;                            (ii)  one business day after the date that   the owner of the homestead receives a copy of the loan application   if not previously provided and a final itemized disclosure of the   actual fees, points, interest, costs, and charges that will be   charged at closing. If a bona fide emergency or another good cause   exists and the lender obtains the written consent of the owner, the   lender may provide the documentation to the owner or the lender may   modify previously provided documentation on the date of closing;   and                            (iii)  the first anniversary of the closing   date of any other extension of credit described by Subsection   (a)(5) [ (a)(6) ] of this section secured by the same hom [Text truncated for display. Full text available on LegiScan.]