- - h
L.
Hon. C. Woodrow Laughlin
County Attorney
Jim Wells County
Alice, Texas
Dear Sir:
Opinion No. O-5491
Re: If real property conveyed
to the State of Texas ata
tax sale, is sold to an in-
dividual, would the pur-
chaser be required to
pay any State, county and
school taxes that were
delinquent at the time of
the judgment?
We have your letter requesting an opinion by this depart-
ment. The letter is as follows:
“In 1932. the Sheriff of Jim Wells County conveyed
to the State of Texas certain property at a tax sale, as there
were no bidders that would bid a sufficient amount for said
property. Subsequent to this time, this property has been
assessed against the State of Texas on the Tax Rolls of Jim
Wells County.
“I now propose to sell said property as provided
by Article 7345b. Seetion9, Revised Civil Statutes of Texas,
and I would like to have your opinion upon the following
questions, towit:
“(1) If this property is sold to an individual, would
he be required to pay any State, County and school taxes
that were delinquent at the time of the judgment in 1932?
“(2) Would this purchaser be required to pay any
taxes that have accrued on this property since it has been
dwded to the state 7
“(3) Would the purchaser be required to pay any-
thing else besides the amount bid at the Sheriffus Sale ?
Hon. C. Woodrow Laughlin, page 2 (0 -5491)
“‘Article 7345b. Section 9, Revised Civil Statutes
of Texas, provides in part as follows: ‘If the property
be sold to any taxing unit which is a party to the judg-
ment under decree of court in said suit, the title to said
property shall be bid in and held by the taxing unit pur-
chasing same for the use and benefit of itself and all
other taxing units which are parties to the suit and which
have been adjudged in said suit to have tax liens against
such property, pro rata and in proportion to the amount
of the tax liens in favor of said respective taxing units
as established by the judgment in said suit, * 4: *.’
“Article 7345b, Section 10, Revised Civil Statutes
of Texas, provides in part as follows: “The purchaser of
property sold for taxes in such foreclosure suit shall take
title free and clear of all liens and claims for ad valorem
taxes against such property delinquent at the time of judg-
ment in said suit to any taxing unit which was a party to
said suit, or which had been served with citation in said
suit as required by this Act. * * 4: ’
“In view of the above and foregoing authorities,
it is the opinion of this department that all of the ques-
tions asked should be answered in the negative. In other
words, where property is sold as provided by Article
7345b, Section 9, the purchaser receives title free and
clear from any liens for taxes whatsoever, and is not re-
quired to pay any taxes until the year following.’
We note that in your letter you state the land in question was
conveyed to the State by the Sheriff of Jim Wells County at a tax sale in
1932. The copy of the deed in question, which you sent us in response to
our request for additional information, appears to be dated the 3rd day d
September, 1931. and to have been acknowledged by the sheriff on the 22nd
day of October, 1931. The copy of the judgment rendered in the case shows
the judgment to have been granted on the 18th day of February, 1931.
Article 7345b. V.A.C.S. of Texas, was enacted in 1935 by
the 44th Legislature. Sections 2. 5. and 10 of said article were amended
in 1941 by Acts of the 45th Legislature. In our opinion No. o-5506 (a
copy of which is enclosed for your information) we held that when a tax
sale has been had in full compliance with the terms of said Article 7345b.
the purchaser of the property so sold for taxes in such foreclosure suit.
takes the title thereto free and clear of all liens and claims for ad valor-
em taxes against the property delinquent at the time of the judgment in
the said suit as against any taxing unit which was a party to the suit, or
which had been served with citation in the suit, as required by said Ar-
ticle 7345b. In said opinion we further held that in any case, where at the
time of the judgment referred to there were any unpaid assessments for
maintenance and operation purposes on a pro rata per acre basis against
_-
. ~. I
Hon. C. Woodrow Laughlin, page 3 (O-5491)
any irrigable land authorized by law to be made for water improvement
districts, or water control and improvement districts, the collection of
said assessments ‘or the liens securing the same would not be prejudiced
by said judgment.
But it is obvious that the provisions of said Article 7345b
are not applicable to the judgment inquired about by you, for the reason
that said article was not in force at the time said judgment was obtained.
It is elementary that a judgment is only binding on those who are parties
to the suit in which the judgment was rendered. Insomuch as an inspec-
tion of the copy of the judgment which you sent us discloses that no tax-
ing units other than the State and county were parties to the suit in ques-
tion, you are advised that any taxing unit other than the State and county
would not be bound by said judgment; their rights would not be affected
thereby, and any tax liens subsisting in their favor at the time of the
judgment would not be extinguished by the force of said judgment.
Article 7336f, Sec. 1, was enacted in 1935 by the 44th Leg-
islature, and is as follows:
‘The collection of all delinquent, ad valorem taxes
due the State, county, municipality or other defined subdi;
visions that were delinquent prior to Dec. 31. 1919, is for-
ever barred.”
By reason of the foregoing quoted statute, we need to con-
sider in this opinion only the effect of the instant judgment on such taxes
as have become delinquent since Dec. 31, 1919. as the collection of those
which became delinquent before that date is “forever barred.*
Writing upon the quality of title acquired by a purchaser at
a tax foreclosure sale, Texas Jurisprudence has this to say:
“‘Referring to the title acquired by purchaser at a
tax foreclosure sale, the statutes provide, that when the
land has been paid for, the sheriff shall execute a deed
‘.cnmm*eg title ‘, and~~that “such;deed shall be held in any
court of law DF equity in this State to vest good and per-
fect title in the purchaser thereof, subject to be impeached
only for actual fraud.’ Therefore, and seeing that the fore-
closure proceeding is a suit in rem. it has been held that
if all parties having an interest in the land were joined as
defendants an estate in fee simple passes to the purchaser
free from any lien for taxes for the taxing years prior to
those for which foreclosure was decreed, in the absence
of any reservation of such lien in the judgment of foreclo-
sure - subject, however, to the rights of any persons who
had some interest and therefore should have been implead-
ed as parties in the tax foreclosure suit.m (40 Tex. Jur.
307-308, Section 229. citing Ball v. Carroll, 92 SW. 1023,
. .
Hon. C. Woodrow Laughlin, page 4 (O-5491)
error refused; State Mortgage Corp. v. State, 9 S.W. (2d)
271. judgment reformed, Commission of Appeals, 17 SW.
(2d) 801; State v. Lile, Civ. App., 212 S. W. 517; Ivey v.
Peichman, Civ. App., 201 S. W. 695; error dismissed;
City of Houston v. Barkley. Civ. App., 68 S.W. 730. error
refused)
We understand our Commission of Appeals to hold in the
case of State Mortgage Corp. v. State, 17 S.W. (2d) 801. (cited above)
that each annual assessment of taxes evidences a “special lien” on the
land on which the assessment was made; that this special lien by force
of the statutes continues in existence until the lien liability “shall be
paid.” That the statutory provisions to the effect that the special lien
continues in existence until the tax liability shall be paid. is modified
by the effect of that merger of lien and title which occurs when the State
itself finally takes the land in payment of taxes for a particular year.
Applying this doctrine to the case you inquire about, we
have this situation:
(a) The State reduced the State and county delinquent taxes
for the year 1928 to judgment, and
(b) did not sue for any State and county taxes for any year
other than 1928.
(c) The State bought said land for said taxes, and
(d) has held same until the time for exercising the equity
of redemption has expired.
The result is -
(a) The State now owns said land (See Booty et al. v. State,
149 S.W. (2d) 216) and has the legal title thereto.
(b) The State’s lien for any taxes due it and delinquent at
the time of the judgment, but not sued for, has now merged with the State’s
said title; and
(c) A sale now of the State’s title would pass a title to the
purchaser which would be free of all tax liens existing against said prop-
erty for delinquent State and county taxes, at the time of the judgment’s
rendition.
There is,no provision of Texas law whereby land belonging
to the State, purchased by it at a tax sale, may be taxed while so belong-
ing to the State. You are therefore advised that no taxes in favor of any
Hon. C. Woodrow Laughlin, page 5 (O-5491)
taxing unit have legally accrued against the land in question subsequent
to its purchase by the State.
Approved Nov. 3. 1943 Very truly yours
/s/ Grover Sellers ATTORNEY GENERAL OF TEXAS
First Assistant
Attorney General
By /s/ George P. Blackburn
George P. Blackburn
Assistant
GPB:AMM/cm
ENCLOSURE
APPROVED
Opinion
Committee
BY /s/AW
Chalrman