; Hon. James C. Martin County Attorney Nueces County Corpus Christi, Texas . Opinion No. **V-576** Re: The accrual of taxes on property bought in by a taxin unitat a tax foreclosure sale, as well as the authority ofa taxing unit to sell such property at a private sale for more thanthe taxjudgment. Dear Sir:You have requested our opinion onthe legal effect ofthe amendment ofSection 9,Article 7345b, Vernon’s Civil Statutes, by the provisions of House Bill **695,** Chapter 454, Acts 50thLegislature, Regular Session, 1947,page 1061,by propounding the followin8questions:

“1. Does a taxing unit, theState of Texas included, have the right and power to make a valid privzte sale of property boirght in for taxes wkerc such sale is for more thanthe taxjudgment? ” “2. When property is bought in by a taxin unit at a tax foreclosure sale and is deeded to such taxing unit to hold for other taxing units **interested in**  **the** judgment, de taxes cintinue toaccrue on such prop**erty or**  **are the**  **taxes abated**  **until** it is sold to a private individual by such taxing unit?” Inthecompreh;nsive brief submitted by you, you have discussed tbe interpretation of Section 9by the Supreme Court of Texas in thecase of Little v. Dennis, 187S.W. 2d 76,and opinions of theAttorney General, O-950. O-1939, 0-5856-A, and V-124, prior to tke amcmdrnentif suck section.

Prior to the 1947amendment tbc previsions of Ssctien 9, Article 7345b.V.C.S., which authorized private sale ofproperty, bought in for taxes by a taxing unit under the statutory provisiens read as follows:~

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.Hon. James C. Martin, iage 2 (V-576) .C-

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. . . and such property shall not be sold by thetaxing unit purchasing same for less than the adjudged value thereof or the amount ofthejudgments against the property in said suit, whichever is lower, without the written consent of all taxing units which in said judgment have been foundtohave tax liens against such property; and when such property is sold by the taxing unit purchasing same, theproceeds thereof shall be received by it

### for account 

### of itself and all other said taxing units adjudged in said suit to have a tax lien against such property. and after paying all costs and expenses, shall be distributed among such taxing units pro rata and fnproportion to the amount oftheir tax liens against such property as established in said judgment. Consent inbehalf of the State of Texas under this Section ofthis Act may be given by the County Tax Collector of the countyinwhich the property is located.” The,material changes made by the Fiftieth Legislature in amending Section 9are as follows: **Y**

**. .**  **.** The taxing unitmay sell and convey said property so purchased by it, or which has heretofore been purchased in thename ofany officer thereof, at any time in any manner determfned to be most advantag~eous to said taxing unit or units, either at public or private sale, subject to any **then** existing right of redemption; and the purchaser ofthe properly at any such sale shall receive all of the right, title and interest in said property as was acquired and is then held by said taxing unit under such tax foreclosure sale to it; but such property shall notbe sold by the taxing unit purchasing the same, at private sale, for less than the adjudged value thereof, if any; as established in the taxjudgment, or the total amount for which suchjudgment was rendered against theproperty fn said suit, whichever is lower, without the written consent of all taxing units which fn said judgment shall have been found tohave tax liens against said property. All such consents shall be evidenced by thejoinder in Uhe conveyance by the consenting taxing units, acting by the officers herein authorized to give such consents, Consent to such sales inbehalf of the State ofTexas may be given by the County Tax Collector ofthecountyinwhich the property is located; and consents onbehalf of other taxing units may be given by the presiding officers of their governing bodies.

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Hon. James C. Martin, Page 3 

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Section 

### 9as amended also provides for the**manner** of executing the conveyance of title ofthe property sold at both public and private sale and further provides for confirmation and validation of sales and conveyances made by taxing units or officers thereof ofproperty purchased by such taxing units or in thename of any 

### of their officers at foreclosure sales which had been made prior tothe passage of the amendment, Itwill be noted thatthe case 

### of Little v. Dennis, supra, dealt solely with the law as it existed prior to the amendment, and the same is true of the opinions of theAttorney General.

Itis evident that the legislative intent in enacting If. B. 695was toaccomplish a dual purpose;.first, to clarify the law by specifically authorizing the resale by public or ivate sale of property sold under foreclosure for delinquent es and acquired by the taxing units under the provisions of Article 7345b; and, second, to confirm and validate such sales as had been made prior

‘thereto butwhich through lack of express statutory authority 

### or. erroneous construction of the law had rendered such sales and the conveyances made thereunder partially invalid, even though the sales and conveyances were made by the taxin units inthe **UtmOSt 80043**  

### faith.

The above-quoted language of Section 9, Article 7345b, as amended by H. B. 695 is clear and unambiguous and **not** only authorizes taxing units, including the State of Texas, to make a valid private sale of property bought in for taxes, subject to any then existing right of redemption, for an amount equal to or in excess of theadjudged value thereof, ifany, as established in the taxjudgment or for the total amount **or** 

### an amount in excess of **the** total **amount** for which suchjudgment was rendered against such property in said suit, whichever is the lower, withouttbe necessity of a written consent of all taxing units found tohave tax liens against said property under thejud8ment.

Your second question is restated: “When property is bought in by a taxing unitat a taxforeclosure sale and is deeded to such taxing unit to hold for other taxing units interested inthe judgment, do taxes continue to accrue on such property or are tbe taxes abated until it is sold to a private individual by such taxing unit? ” The Supreme Court of Texas in the case efState v. Moak et al, 207S.W. 2d 894, 897, has enunciated the rule governing the answer to theforegoing question. The opinion holds as follows:-

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Hon. James C. Martin, Page 4 (V-576)

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. . . The only interest inthe land now extant is that acquired by the taxing units and conveyed by them to Reeve. There is no statute warranting thefixing of a lien against the land for taxes during the time it was held by these taxing units, and the contentionadvanced by the Statethat taxes accrued against theproperty while thus, in effect, held by this sovereign has been emphatically rejected by the courts. (Citing cases)

‘As totaxes after the redemption period and before the sale to Reeve. The property was exempt from taxation whrle held by the City for theState, the County and itself, as was pointed outin theforegoing discussion. Consequently, no taxes accrued during this period.” Under the decision ofthe Supreme Court of Texas, when property is bought in by a taxing unit at a ,taxforeclosure sale and is held by such taxing unit for thebenefit ofthe other taxing units interested in thejudgment, no taxes accrue uponthe property until the sale by the taxing unit to a third party inthemanner. provided by Section 9,Article 7345b, V.C.S.

SUMMARY Under the provisions of Section 9,Article 7345b. V.C.S., as amended by Ch. 454,Acts 50thLeg., 1947, a taxing unit, including theState ofTexas, has the authority to sell property acquired by itunder theprovisions ofArt. 7345b. V.C.S., at aprivate sale, for more thanthe amount ofthejudgment, Property purchased by a taxing unit at a foreclosure sale under theprovisions ofArt, 7345b. V.C.S., is exempt from all taxes andtax liens until the sale thereof to a private fndividual. Set, 9,Art, 7345b. V.C.S., as amended by Ch.454, Acts 50thLeg., 1947;State v. Moak et al, 207S.W. td 894, 897. Yours very truly ATTORNEY GENERAL **OF** TEXAS

K:&RAL By %*A.

. CKR/JCP