; 

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 unit at a tax foreclosure sale, as well as 

the authority of a taxing 

unit to sell such property 

at a private sale for more 

than the tax judgment. 

Dear Sir: 

You have requested our opinion on the legal effect of the 

amendment of Section 9, Article 7345b, Vernon’s Civil Statutes, by 

the provisions of House Bill 695, Chapter 454, Acts 50th Legislature, Regular Session, 1947, page 1061, by propounding the followin8 questions: 

“1. Does a taxing unit, the State 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 than the tax judgment? ” 

“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 to accrue on such property or are the taxes abated until it is sold to a private individual by such taxing unit?” 

In the compreh;nsive brief submitted by you, you have 

discussed tbe interpretation of Section 9 by the Supreme Court of 

Texas in the case of Little v. Dennis, 187 S.W. 2d 76, and opinions 

of the Attorney General, O-950. O-1939, 0-5856-A, and V-124, prior 

to tke amcmdrnent if suck section. 

Prior to the 1947 amendment tbc previsions of Ssctien 9, 

Article 7345b. V.C.S., which authorized private sale of property, 

bought in for taxes by a taxing unit under the statutory provisiens 

read as follows:~ 

. . ~‘.‘. 

.,: 

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

.C- _ 

* 

. . . and such property shall not be sold by the taxing 

unit purchasing same for less than the adjudged value 

thereof or the amount of the judgments against the 

property in said suit, whichever is lower, without the 

written consent of all taxing units which in said judgment have been found to have tax liens against such 

property; and when such property is sold by the taxing unit purchasing same, the proceeds 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 fn proportion to the amount of their 

tax liens against such property as established in said 

judgment. Consent in behalf of the State of Texas under this Section of this Act may be given by the County 

Tax Collector of the county in which the property is located.” 

The ,material changes made by the Fiftieth Legislature in 

amending Section 9 are as follows: 

Y 

. . . The taxing unit may sell and convey said property so purchased by it, or which has heretofore been 

purchased in the name of any 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 of the 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 not be sold by the taxing unit purchasing the same, at private sale, for less than the adjudged value thereof, if any; as established in the tax judgment, or the total amount for which such judgment was 

rendered against the property fn said suit, whichever is 

lower, without the written consent of all taxing units 

which fn said judgment shall have been found to have 

tax liens against said property. All such consents shall 

be evidenced by the joinder in Uhe conveyance by the 

consenting taxing units, acting by the officers herein 

authorized to give such consents, Consent to such sales 

in behalf of the State of Texas may be given by the County Tax Collector of the county in which the property is 

located; and consents on behalf of other taxing units may 

be given by the presiding officers of their governing bodies. . , .” 

. 
- . . 

Hon. James C. Martin, Page 3 (V-576) 

Section 9 as amended also provides for the manner of 

executing the conveyance of title of the 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 of property purchased by such taxing units or in the name 

of any of their officers at foreclosure sales which had been made 

prior to the passage of the amendment, It will be noted that the 

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 the Attorney General. 

It is evident that the legislative intent in enacting If. B. 

695 was to accomplish 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 but which 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 in the 

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 the adjudged value thereof, if any, as established in 

the tax judgment or for the total amount or an amount in excess 

of the total amount for which such judgment was rendered against 

such property in said suit, whichever is the lower, without tbe 

necessity of a written consent of all taxing units found to have 

tax liens against said property under the jud8ment. 

Your second question is restated: 

“When property is bought in by a taxing unit at 

a tax foreclosure sale and is deeded to such taxing 

unit to hold for other taxing units interested in the 

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 ef State v. Moak 

et al, 207 S.W. 2d 894, 897, has enunciated the rule governing the 

answer to the foregoing question. The opinion holds as follows: 
- 

_ * 

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

” 

. . . The only interest in the land now extant is that 

acquired by the taxing units and conveyed by them to 

Reeve. There is no statute warranting the fixing of a 

lien against the land for taxes during the time it was 

held by these taxing units, and the contention advanced by the State that taxes accrued against the property while thus, in effect, held by this sovereign has 

been emphatically rejected by the courts. (Citing 

cases) 

‘As to taxes after the redemption period and before the sale to Reeve. The property was exempt from 

taxation whrle held by the City for the State, the County 

and itself, as was pointed out in the foregoing discussion. Consequently, no taxes accrued during this period.” 

Under the decision of the Supreme Court of Texas, when 

property is bought in by a taxing unit at a ,tax foreclosure sale and 

is held by such taxing unit for the benefit of the other taxing units 

interested in the judgment, no taxes accrue upon the property until 

the sale by the taxing unit to a third party in the manner. 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 50th Leg., 1947, 

a taxing unit, including the State of Texas, has the authority to sell property acquired by it under the provisions of Art. 7345b. V.C.S., at a private sale, for more 

than the amount of the judgment, Property purchased 

by a taxing unit at a foreclosure sale under the provisions of Art, 7345b. V.C.S., is exempt from all taxes 

and tax liens until the sale thereof to a private fndividual. Set, 9, Art, 7345b. V.C.S., as amended by Ch.454, 

Acts 50th Leg., 1947; State v. Moak et al, 207 S.W. td 

894, 897. 

Yours very truly 

ATTORNEY GENERAL OF TEXAS 

K:&RAL By %*A. 

. 

CKR/JCP