Case Information

*1 OFFICE OF THE ATTORNEY GfiNERAL OF TRXAS

AUSTIN

Ronorablm Thomas A. Y&em,

Couaty Attorney

Llbertp Couaty

tlborty, Tmxar

Dear sirr

UB thm rollowlag faatr; oa

TmXa!, rmd against taxas.

delinquent Daytoa

jut?gmJnt war on-s 68.02, tho county a tot61 moormry Tho property o on Oatobrr 5, the judgment wd aoorued 00 ruary 6, 194o, l rter old tha rh0rirr adrortlssmont on in TOI~Olmm to two quor- 0redr ralo, 835.00, 0 ~%yxwe 0r ODll$b, or should nt or the taxers for which tho there ir any 8um to and (2) )ho*p rhould the aaos be distributed?

d that rhilo the suit ana riled prior 9348b, Vornonls Cltil Statutes, Artielo entered urrtil arter oat6 Aot had booomo 0 boom0 0rrO0tirO on Kay 13, 1957, aad t~ho JuCgmont wa8 entered on Jaly fJ3, 1937.

Tho dirtribution of the proooods of saloe under Artiolo 734Sb ir govormd by S0otions 8 acd 9. Rolatlng to tho prQoood8 0r wr8t tha 8a10c, seation ^[8] provtdosr *2 Honorable Thorns a. Xheat, Fage 2

*ii-o proport sold for taxes under deoree 0r said In euoh suit aball be sold to the ownor property, directly or lndlrootly, or to aayona haring an intorsst thorela, or to any party

other than a taxing unit rhloh la a party to tho suit, ror less than tk& amount or the ad- judged valur aforesalC ol said Frojmrty or tha agzxegate ariount of the juQgnsnts against tho property in said suit, whlohevor !a lower, and the net proooeds any sale 0r such property tade under deorso of oourt ia said suit to any party other than any such taring unlt shall bo- long and be aistrlbuted to all units

whloh arm partles to the whloh by tho judg- mnt in suit have been founC to have tax liens against suoh property, pro rata aad in propurtlon to thm mounts of their res?eotlvs liens as established In said judgr;ent, but any mxooss in the proceeds ol salo over and above the mount necessary to C&ray the oosts or suit and sale and ohher expanses hsrelnabova made abargeabls against suah procoe$s, and to rully dlsoharge, the judgments against said property, shall be paid to the parties legally entitled to such 0x0033.~

Cases whore the property is bought in by a tax- ing unit and thematter sold by It at private sale arm oon- trolled, as to th0 dlspositlon of the prooeeda, by Section 9, applloablo PI% reading:

* . and rnhon suoh property Is sold by the takig unit purohasing mm, the socoeds thereot shall be received by for account Of ltsetlt and all other so?d taring units adjudged In said suit to have a tax-lien against suoh property, and after zaaying all oosts OI- panssa, shall be tistrlbuted akong suoh taxlng units pro rata and in proportion to tho amount or their liens against suoh prop8rty as established In said judgment. Coasant In be- half or the State Texas unOer this Ceotlon or ttls kot my be .&van by the County Tax Col- lector or the county ln which tho property is located."

Bhen the property is purohasod first Sal0 by a taxing unit, is not sold at private aale, but there- artar advmrtised add sold by the sheriff, the distribution or thm procoeds or the sale 1s detarmlpsd tls laot son- tenoe In soot1 on 9, raadlng:

.

919

Honorablo ThOr;aB A. 'iiheat, Fag. 3

"The Fherltt Shall apply tbB proossds from sale, first, to thm pay.mt 0r all costs Such ._ . la said unit and all costs and OX~~CB~B or Balm reoslo and all attorney*8 reO8 acd reason- ablo mx~sases taxed as oosts by thm Court ia Bald suit and shall distribute tho balaxcm aslong the taxing anits partiolpatlng In ssld original judguant pro rate and in proportion to the amount of their liens agalast suoh property as OS- t6bllBhrd In juQgneat.*

From the above it quite clear that thm pro- 0eed8 of any salon governed by Art1010 7343b shall be dls- trlbuted 68 rOiiOW8: First, to the pymnt COatBl seoond, to tte taxing units pro rata, ln proportion to thalr reooverles; third, any balanoe to the landowner or other party entitled thereto.

Prior to Art1010 7345b, costs were not paid un- til after the satlsiaotlon or taxes, penalty and interest. Conrerence Opinion no. 2707, tkis oflloa; Article 7333, Revised Cl~ll ctatutets. F~OC~~B of the sale were given a pro rate distribution uong the units reoovarlng judg- Bent8 in tho Suit. coateronoe Opinion No. 272S, thi8 or- rioe , Letter Cpinlons, Asrlistant C. %‘. eonedy to K. C.

Barkley, April 26, 1935, and Assistant Scott Calnes to Ree80 D. kade, April 23, 1932, 26 5.. C. L. 404; Cooley on Taxation (4th Ed.) ZeOtlOn 1241; Lmnlaon ‘1. City or Keokuk, 45 Iowa 266; 3IBtiOO v. LOganSpOrt, 101 in&. 3261 :iaBhvI11e v. Leo, SO 'ion% 452; St. Clalr v. JOWB, 108 :G. X. 256, Indi Zowm V. city 0r mhoood, 64 Z. E. 51~ vag Adaze v. Osgood, 60 X. 7. 669, /:eb; .vslowles v. xorrls, 65 Atl. 782, TM.

Duo to the ohango wrought by Artlole 7343b in mklng co5ts ths first oharge against the prooaeds or a sale, it betosnes neoeasary ror us to detsxzlas whather your ease Is governed by that Act. It is reoalled that thm suit was tiled long prior to the enaotmdt 0r Artlclo 7345b, but judpent was not entered until after the mf- ieotlve data of that statute.

Seotloa 1 of the Aot plerely defines "taxing Section 2 begins, "In any slit hereafter brought U[litB-, by or In behalf 0r any unit . . . plaintirr my Implead as parties derendant any or all Other taring unltr having delinquent tax o1aimB against euoh property,- oto. Ye think that in the Use of term *in any suit hereafter brought- tha Legislature olsarly intended to

- 920 uonorablr Thorn8 A. %heat, Faga 4

exclude suits theretofore instituted. Cur belief in thlr resgeat ie aooentueted by the faot that it is expresolp written in Zeotlon 12, near the close of the Act, that the provlslons relating to redssptlon and the lsnuaaae of *it or possesslo~ 3hall apply to mall suits heretofore or here- after filed.” cur 0pln10~ is that the case ~111 be govern- - the laws erlrtlng the t&e t.Se~auit wa8 filed in SO far as the distribution of the proceeds of the aale and Q6&yINAt Ot OOatS are OOnOOrAed. A8 bearing generally !=%A AAtOAiO V. 33rv, OA the qUe.StiOA We Oite 48 2. ':'. 496, at pp. 499-500; ztowart V. Lataer, 116 5. 3.

?ald aum or $S.OO, proceeds of said sale, should be applied to the paymAt of the judgrcent recoveries pro rata in proportion to the respeotivs ainounta thereof.

very truly yours Glen‘II I?. Lewis lrssirrtant ci% : Lli

APPROVEZb@bAY 3, 1940

ATTORNEY GENXRAL OF TEXAS