Texas tax lien certificate

The attachment of a tax lien to property for additional Texas property taxes owed after the results of a back-- appraisal indicated that exemptions were claimed erroneously by the previous owner did not violate the Texas Constitution.

The Texas Constitution allows the property of a delinquent taxpayer to be seized and sold to pay the delinquent taxes. There is no constitutional requirement that the property subject to the lien continue to be owned by the delinquent taxpayer before it can be sold to pay the delinquent taxes. A sale of property encumbered by a tax lien for unpaid taxes does not extinguish the lien. The tax lien at issue attached during the tax year the exemptions were erroneously claimed by the previous owner, not at the time of the back-appraisal, and sale of the property did not extinguish the tax lien. The purchasers were responsible for examining the records and assessment rolls before purchasing the property to protect themselves from back taxes. Additionally, the purchasers could have protected themselves by obtaining a valid tax certificate issued by a taxing authority showing that no delinquent taxes were due at the time of purchase. (Dallas Central Appraisal District v. Wang, Texas Court of Appeal, Fifth District, No.05-01-00712-CV, June 26, 2002.)

Copyright CCH Incorporated: Federal and State Tax Aug 26, 2002
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