THEATTORNEY GENERAL 

OF TEXAS 

PRICE DANIEL 

ATTORNEY GENERAL 

AUSTIN 11. -~BCKAS 

April 7, 1950 

Hon. B. F. McKee 

County Auditor 

Hidalgo County 

Edinburg, Texas 

Dear Mr. McKee: 

Opinion No. V-1040 

Re: The disposition to be made 

of funds received in delinquent tax cases from property / purchased by a taxing 

unit, as trustee for all taxing units, and sold prior to 

expiration of redemption 

period, and related question. 

You request the opinion of this office upon two questions, 

both of which deal with sales of property purchased by a taxing 

unit, as trustee for the benefit of all taxing units,parties to the 

suit, and subsequently sold by the taxing unit, prior to the expiration of the period of redemption. 

Your questions may be stated as follows: (1) How should 

the proceeds of the second sale by the purchasing taxing unit be 

disposed of if the sale is made prior to the expiration of the redemption period; (2) if the property is sold for an amount in excess of the judgment, costs and expenses at a second sale, is 

the owner required to pay statutory penalty upon such excess in 

order to redeem. 

The answer to both your questions is found in Sections 

9,12, and 12-a of Article 7345b, V.C.S. 

These statutes are rather lengthy, and we do not deem 

it necessary to set them out in full, but only the pertinent parts. 

Briefly, Section 9 of the statute provides the method and manner 

for a second sale by the purchasing taxing unit. After thus providing, the statute directs that the purchase price be disposed 

of as follows: 

“When such property is so sold at Public or private sale, the proceeds thereof shall be received by or 
Hon. B. P, McKee, Page 2, V-1040. 

paid over to the taxing unit which purchased said property at the tax foreclosure sale, for the account of itself and all other taxing units adjudged to have a tax 

lien against such property, and all taxing units so receiving said proceeds shall first pay out of the same 

all costs and expenses of Court and of sale, and distribute the remainder among all taxing units for which 

purchasing taxing unit purchased and held said property, pro rata and in proportion to the amounts of 

their tax liens against said property as established in 

said judgment. ” 

Thus it is quite apparent that the purchasing taxing unit 

should distribute the proceeds of the second sale, after first paying all costs and expenses of the sale, to the respective taxing 

units, parties to the suit, upon a pro rata basis in proportion to 

the amounts of their tax liens adjudged against the property as 

established by the judgment. This, of course, is true regardless 

of whether the second sale is a private or public sale. This answers your first question. 

In answer to your second question, said Section 9 of the 

statute further specifically provides as follows: 

1. 

. . . provided, if the period for the redemption 

of said property from said tax foreclosure sale has 

not expired at the time of said sale, said conveyance 

shall be made expressly subject to the right of redemption provided in Section 12 of said Act.” 

In this connection it is only necessary to say that the 

amount received by the purchasing taxing unit at a second sale 

has nothing to do with the amount required to be paid by the owner to redeem. This is governed by the amount bid at the first 

sale, which must conform to the terms and conditions provided 

for in Section 9. 

The amount required to be paid by the owner or others 

entitled to redeem under the proviiioas of Section 12 of said 

Article is governed exclusivaly bye the provisions of said section, 

and this regardless of whether the first sale is to a taxing unit 

or to a private purchaser; and no greater amount is required to 

redeem than that provided for by this section of the statute, and 
Hon. B. F. McKee, Page 3, V-1040. 

the addition of any further penalty is wholly unauthorized. 

From the foregoing it is clear that when a second sale 

is made by a purchasing taxing unit, either at private or public 

sale, before the redemption period has expired, the entire proceeds after the payment of costs and expenses of the sale, shall 

be distributed pro rata among all the participating taxing units 

in proportion to the amount of taxes, penalties and interest adjudged in favo.r of each. The amount received by the selling 

taxing unit at the second sale has nothing to do with the amount 

required to redeem, This is governed by the bid at the first sale, 

and no greater amount may be exacted than that provided in Section 12 of Article 734%. ,V.C.S,. 

SUMMA.RY 

Under the provisions of Section 9 of Article 7345b, 

V.C.S., the purchasing taxing unit should distribute the 

proceeds of the second sale whether made before or 

after the expiration of the period of redemption, after 

paying the costs and expenses of the sale, among all 

taxing units pro rata and in proportion to the amounts 

of their tax liens as established by the judgment. Section 12 of said Article specifies the amount required 

to redeem and refers to the first sale and not the second, No greater amount may be exacted to redeem than 

that specified. 

Yours very truly, 

APPROVED: 

PRICE DANIEL 

Attorney General 

W. V. Geppert 

Taxation Division 

Charles D. Mathews 

Executive Assistant 

LPL/mwb/f 

By $?L?iz-- . . 

Assistant