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.
(c) A tax lien notice may include other relevant information
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.
(c) A state tax lien filed under this chapter may not be
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.
(c) All property subject to execution of a transferee in a
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.
(c) If all or part of a lien is nullified, a certified copy of
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.
(c) If notice of the assignment is given as provided by
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.