This section lets a taxing unit sell certain tax-foreclosed or tax-warrant property in a private sale to an owner of abutting property, but only after a public auction fails to produce a sufficient bid.
Sec. 34.0101. SALE OF CERTAIN PROPERTY TO OWNER OF ABUTTING PROPERTY. (a) In this section: (1) "Flood insurance rate map" means the most recent flood hazard map published by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.). (2) "Floodway" means an area that is identified on the flood insurance rate map as a regulatory floodway, including the channel of a river or other watercourse and the adjacent land areas that must be reserved for the discharge of a base flood, also referred to as a 100-year flood, without cumulatively increasing the water surface elevation more than a designated height. (b) This section applies to real property: (1) that is: (A) seized under a tax warrant issued under Subchapter E, Chapter 33; or (B) ordered sold pursuant to foreclosure of a tax lien; and (2) that is: (A) a narrow strip of land or other parcel of land that because of its shape or small area cannot be used independently under its current zoning classification or under applicable subdivision or other development ordinances; (B) landlocked without direct access to a public road; or (C) located in: (i) an area designated by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.) as having a two-tenths of one percent or greater annual chance of flooding; or (ii) a floodway. (c) Sections 34.01(b), (c), (d), (e), (f), (g), (h), (i), (m), (n), (q), and (s), 34.02, 34.03, 34.04, and 34.21 apply to a sale of real property under this section. (d) Notwithstanding any other law, including Sections 263.001 and 272.001, Local Government Code, and subject to Subsection (e) of this section, a taxing unit that requested a tax warrant or order of sale for real property subject to this section may direct the officer charged with selling the property to sell the property to an owner of abutting property at a private sale. (e) A taxing unit may not direct the sale of real property at a private sale under this section unless: (1) the property is offered for sale at a public auction; and (2) a bid sufficient to pay the amount specified by Subsection (h) is not received. (f) A taxing unit that directs the private sale under this section of real property that abuts two or more adjacent parcels of real property having different owners must give notice of the sale to each abutting owner. The notice must state that the taxing unit will: (1) offer the property for sale; (2) accept sealed bids for the property; and (3) sell the property to the highest bidder. (g) A purchaser of property under this section must meet the requirements of Section 34.015. (h) A taxing unit that directs the sale of real property under this section may not sell the property for an amount that is less than the lesser of: (1) the property's market value, as specified in the warrant or the judgment, as applicable; or (2) the following amount, as applicable: (A) the amount provided by Section 34.01(p), in the case of property described by Subsection (b)(1)(A) of this section; or (B) the amount provided by Section 34.01(b), in the case of property described by Subsection (b)(1)(B) of this section. (i) A taxing unit that requested a tax warrant or order of sale for real property subject to this section may sell the property under this section without the consent of any taxing unit entitled to receive proceeds of the sale. Added by Acts 2023, 88th Leg., R.S., Ch. 962 (S.B. 2091), Sec. 2, eff. September 1, 2023.