Texas SB2173 modifies tax certificate rules for property transfers, affecting tax liens and liability.

Texas SB2173 amends the Tax Code to clarify the effect of tax certificates on property transfers. If a tax certificate erroneously indicates no delinquent taxes and is canceled, it extinguishes the tax lien for the purchaser but not for the original taxpayer. The law also specifies that certain transfers, like those between related parties, do not extinguish the tax lien. The changes apply to tax certificates issued after the Act's effective date of September 1, 2025.

Texas SB2173 modifies tax certificate rules for property transfers, affecting tax liens and liability.

Texas SB2173 amends the Tax Code to clarify the effect of tax certificates on property transfers. If a tax certificate erroneously indicates no delinquent taxes and is canceled, it extinguishes the tax lien for the purchaser but not for the original taxpayer. The law also specifies that certain transfers, like those between related parties, do not extinguish the tax lien. The changes apply to tax certificates issued after the Act's effective date of September 1, 2025.