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Statutes > Texas > Tax-code > Title-2-state-taxation > Chapter-113-tax-liens

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE B. ENFORCEMENT AND COLLECTION

CHAPTER 113. TAX LIENS

SUBCHAPTER A. FILING AND RELEASE OF STATE TAX LIENS

Sec. 113.001. TAX LIABILITY SECURED BY LIEN. (a) All taxes,

fines, interest, and penalties due by a person to the state under

this title are secured by a lien on all of the person's property

that is subject to execution.

(b) The lien for taxes attaches to all of the property of a

person liable for the taxes.

Acts 1981, 67th Leg., p. 1518, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1985, 69th Leg., ch. 37, Sec. 2, eff. Aug.

26, 1985.

Sec. 113.002. TAX LIEN NOTICE. (a) The comptroller shall issue

and file a tax lien notice required by this chapter.

(b) A tax lien notice must include the following information:

(1) the name and address of the taxpayer;

(2) the type of tax that is owing;

(3) each period for which the tax is claimed to be delinquent;

and

(4) the amount of tax only due for each period, excluding the

amount of any penalty, interest, or other charge.

that the comptroller considers proper.

Acts 1981, 67th Leg., p. 1518, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.0021. APPLICATION TO OTHER TAXES AND FEES. This

chapter also applies to a tax or fee that the comptroller is

required to collect under a law not included in this title.

Added by Acts 1991, 72nd Leg., ch. 705, Sec. 8, eff. Sept. 1,

1991.

Sec. 113.003. EXECUTION OF DOCUMENTS. The comptroller may

execute, certify, authenticate, or sign any instrument authorized

under this chapter to be issued by the comptroller or under the

comptroller's authority with a facsimile signature and seal.

Acts 1981, 67th Leg., p. 1518, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.004. STATE TAX LIEN BOOK. The county clerk of each

county shall provide at the expense of the county a well-bound

book, entitled "State Tax Liens," in which notices of state tax

liens filed by the comptroller are recorded.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.005. DUTIES OF COUNTY CLERK. (a) On receipt of a tax

lien notice from the comptroller, the county clerk shall

immediately:

(1) record the notice in the state tax lien book;

(2) note on the notice the date and hour of its recording;

(3) enter in an alphabetical index the name of each person to

whom the notice applies, along with the volume and page number of

the state tax lien book where the notice is recorded;

(4) furnish to the comptroller, on a form prescribed by the

comptroller, a notice showing that the tax lien notice is

recorded and filed, the date and hour of its recording and

filing, and the volume and page number of the state tax lien book

where the lien is recorded; and

(5) send the comptroller a statement of the fee due for

recording and indexing the lien.

(b) This section prevails over conflicting provisions of other

law.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.006. EFFECT OF FILING TAX LIEN NOTICE. (a) The filing

and recording of a tax lien notice constitutes a record of the

notice.

(b) One tax lien notice is sufficient to cover all taxes of any

nature administered by the comptroller, including penalty and

interest computed by reference to the amount of tax, that may

have accrued before or after the filing of the notice.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 1040, Sec. 10, eff.

Sept. 1, 1997; Acts 2003, 78th Leg., ch. 209, Sec. 15, eff. Oct.

1, 2003.

Sec. 113.007. EVIDENCE OF TAX PAYMENT. A payment in whole or in

part of a tax secured by a state tax lien may be evidenced by a

receipt, acknowledgment, or release signed by an authorized

representative of the state agency that filed the lien.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.008. RELEASE OF LIEN ON SPECIFIC PROPERTY. (a) With

the approval of the attorney general, the comptroller may release

a state tax lien on specific real or personal property when

payment of the reasonable cash market value of the property is

made to the comptroller.

(b) The value of the property to be released shall be determined

in the manner prescribed by the comptroller.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.009. FILING OF TAX LIEN RELEASE. (a) A tax lien

release shall be filed in the office of the county clerk in the

manner that other releases are filed. On the filing of a release,

the county clerk shall release the state tax lien filed with the

clerk in accordance with the regulations of the clerk's office.

(b) The county clerk may send the comptroller a statement of the

customary fee due for the filing and indexing of the release of

the tax lien notice, and the comptroller may pay the fee charged.

The comptroller may collect the amount of the fee paid under this

subsection by the comptroller from the taxpayer against whom the

lien was filed.

released fully until the taxpayer pays all other taxes,

penalties, interest, fees, or sums that the taxpayer owes the

state and that are administered or collected by the comptroller.

Acts 1981, 67th Leg., p. 1519, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 460, ch. 94, Sec. 5,

eff. May 10, 1983; Acts 2001, 77th Leg., ch. 442, Sec. 7, eff.

Sept. 1, 2001.

Sec. 113.010. RELEASE OF LIEN BY ASSIGNEE. A release in whole

or in part by an assignee of the state's claim for a tax and of

its tax lien or of a judgment for a tax secured by a tax lien may

be filed and recorded with the county clerk for the same fee and

in the same manner as a release by the comptroller or by another

state agency that may file a notice of a lien in the state tax

lien records.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR

VEHICLES. The comptroller shall furnish to the Texas Department

of Motor Vehicles each release of a tax lien filed by the

comptroller with that department.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1995, 74th Leg., ch. 165, Sec. 22(69), eff.

Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

933, Sec. 3K.07, eff. September 1, 2009.

SUBCHAPTER B. APPLICATIONS AND STATUS OF STATE TAX LIENS

Sec. 113.101. APPLICABILITY OF LIEN BEFORE FILING. (a) No lien

created by this title is effective against a person listed in

Subsection (b) of this section who acquires a lien, title, or

other right or interest in property before the filing, recording,

and indexing of the lien:

(1) on real property, in the county where the property is

located; or

(2) on personal property, in the county where the taxpayer

resided at the time the tax became due and payable or in the

county where the taxpayer filed the report.

(b) This section applies to a bona fide purchaser, mortgagee,

holder of a deed of trust, judgment creditor, or any other person

who acquired the lien, title, or right or interest in the

property for bona fide consideration.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.102. APPLICABILITY OF LIEN TO MERCHANDISE PURCHASED.

No lien created by this title is effective against a bona fide

purchaser for value of goods, wares, or merchandise daily exposed

for sale in the regular course of business if the purchase and

actual or constructive possession of the goods, wares, or

merchandise is completed before the goods, wares, or merchandise

are seized under a valid legal writ or other lawful process.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.103. APPLICABILITY OF LIEN TO FINANCIAL INSTITUTIONS.

(a) A bank or savings and loan institution is not required to

recognize the claim of the state to a deposit or to withhold

payment of a deposit to a depositor or to the depositor's order

unless the bank or institution has been served by the comptroller

with a notice of the state's claim.

(b) Notice of a state claim must be in writing and be served by

certified mail to the bank or institution or served personally on

the president or any vice-president, cashier, or assistant

cashier of the bank or institution.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.104. PREFERENTIAL TRANSFERS. (a) The comptroller may

recover in a suit brought in Travis County by the attorney

general the property or the value of property transferred in a

preferential transfer.

(b) The transfer of property or an interest in property by a

person who at the time of the transfer is insolvent and has

received or withheld money as a tax under this title or who is

delinquent in the payment of a tax imposed by this title is a

preferential transfer if the transfer occurred during the

six-month period before the date of the filing of a tax lien

notice against the transferor as permitted by this chapter and if

the transfer is made with intent to defraud the state. The

transfer of the property or the interest in property without

adequate and sufficient consideration creates a rebuttable

presumption that the transfer was made with intent to defraud the

state. A transfer with sufficient consideration creates a

rebuttable presumption that the transfer was not made with intent

to defraud the state.

preferential transfer is subject to a prior lien in favor of the

state to secure the recovery of the value of the property

transferred in a preferential transfer.

(d) The remedies provided by this section are cumulative of

other remedies of the comptroller as a creditor.

Acts 1981, 67th Leg., p. 1520, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 113.105. TAX LIEN; PERIOD OF VALIDITY. (a) The state tax

lien on personal property and real estate continues until the

taxes secured by the lien are paid.

(b) The state tax lien on personal property and real estate

attaches to personal property and real estate owned by the

taxpayer beginning on the first day of the period for which the

lien is filed by the state.

Acts 1981, 67th Leg., p. 1521, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1985, 69th Leg., ch. 37, Sec. 1, eff. Aug.

26, 1985; Acts 1987, 70th Leg., 2nd C.S., ch. 1, Sec. 9, eff.

July 21, 1987; Acts 2001, 77th Leg., ch. 442, Sec. 8, eff. Sept.

1, 2001.

Sec. 113.106. LIEN; SUIT TO DETERMINE VALIDITY. (a) In an

action to determine the validity of a state tax lien, the lien

shall be:

(1) perpetuated and foreclosed; or

(2) nullified.

(b) If a lien is perpetuated and foreclosed, no further action

or notice on the judgment is required, and the notice of the

state tax lien on record continues in effect.

the judgment may be filed with the county clerk of the county

where the tax lien notice was filed and may be recorded in the

same manner as a release by the comptroller.

(d) Execution, order for sale, or other process for the

enforcement of the lien may be issued on the judgment at any

time.

(e) A person must bring suit to determine the validity of a

state tax lien not later than the 10th anniversary of the date

the lien was filed. If more than one state tax lien has been

filed relating to the same tax liability, the 10-year limitation

period provided by this subsection is calculated from the date of

the filing of the first lien relating to the liability.

(f) A taxpayer is presumed to have received proper notice of the

taxpayer's tax liability if the notice is delivered to the

taxpayer's last address of record with the comptroller. The

taxpayer may rebut the presumption by presenting substantive

evidence that demonstrates that notice of the tax liability was

not received. If the taxpayer rebuts the presumption of receipt

of proper notice with evidence the comptroller considers

satisfactory, the period of limitations for filing suit provided

by Subsection (e) does not apply.

Acts 1981, 67th Leg., p. 1521, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

931, Sec. 7, eff. June 15, 2007.

Sec. 113.107. ASSIGNMENT OF JUDGMENT ON LIEN. (a) A judgment

perpetuating and foreclosing a tax lien may be transferred and

assigned for the amount of the taxes covered in the judgment and

may be reassigned by a subsequent holder.

(b) An assignment shall be filed and recorded and shall be

released in the same manner as are liens before judgment.

Subchapter E of Chapter 111 of this code, the assignee is fully

subrogated to and succeeds to all rights, liens, and remedies of

the state.

Acts 1981, 67th Leg., p. 1521, ch. 389, Sec. 1, eff. Jan. 1,

1982.