Texas Tax Code 34.02 – Distribution of Proceeds
(a) The proceeds of a tax sale under § 33.94, 34.01, or 34.0101 shall be applied in the order prescribed by Subsection (b). The amount included under each subdivision of Subsection (b) must be fully paid before any of the proceeds may be applied to the amount included under a subsequent subdivision.
(b) The proceeds shall be applied to:
(1) the costs of advertising the tax sale;
(2) any fees ordered by the judgment to be paid to an appointed attorney ad litem;
(3) the original court costs payable to the clerk of the court;
(4) the fees and commissions payable to the officer conducting the sale;
(5) the expenses incurred by a taxing unit in determining necessary parties and in procuring necessary legal descriptions of the property if those expenses were awarded to the taxing unit by the judgment under § 33.48(a)(4);
(6) the taxes, penalties, interest, and attorney’s fees that are due under the judgment; and
(7) any other amount awarded to a taxing unit under the judgment.
Terms Used In Texas Tax Code 34.02
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Property: means real and personal property. See Texas Government Code 311.005
- Taxing unit: means a county, an incorporated city or town (including a home-rule city), a school district, a special district or authority (including a junior college district, a hospital district, a district created by or pursuant to the Water Code, a mosquito control district, a fire prevention district, or a noxious weed control district), or any other political unit of this state, whether created by or pursuant to the constitution or a local, special, or general law, that is authorized to impose and is imposing ad valorem taxes on property even if the governing body of another political unit determines the tax rate for the unit or otherwise governs its affairs. See Texas Tax Code 1.04
(c) If the proceeds are not sufficient to pay the total amount included under any subdivision of Subsection (b), each participant in the amount included under that subdivision is entitled to a share of the proceeds in an amount equal to the proportion its entitlement bears to the total amount included under that subdivision.
(d) The officer conducting a sale under § 33.94, 34.01, or 34.0101 shall pay any excess proceeds after payment of all amounts due all participants in the sale as specified by Subsection (b) to the clerk of the court issuing the warrant or order of sale.
(e) In this section, “taxes” includes a charge, fee, or expense that is expressly authorized by § 32.06 or 32.065.