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 suit against 3.
delinquent taxas. Daytoa
jut?gmJnt war on-s
68.02, tho county
a tot61 moormry
Tho property
o on Oatobrr 5,
0r the judgment
wd aoorued 00 ruary 6, 194o, lr ter
adrortlssmont old by tha rh0rirr
on in TOI~Olmm to two quor-
0redr 0r said ralo, 835.00,
0 ~%yxwe 0r ODll$b,or should
nt or the taxersfor which tho
and (2) it there ir any 8um to
)ho*prhould the aaos be distributed?
d that rhilo the suit ana riled prior
Artielo
9348b, Vornonls Cltil Statutes,
entered urrtil arter oat6 Aot had booomo
0 boom0 0rrO0tirO on Kay 13, 1957, aad t~ho
JuCgmont wa8 entered on Jaly fJ3,1937.
Tho dirtribution of the proooods of saloe under
Artiolo 734Sb ir govormd by S0otions 8 acd 9. Rolatlng to
tho prQoood8 0r tha wr8t 8a10c, seation 8 provtdosr
Honorable Thorns a. Xheat, Fage 2
*ii-oproport sold for taxes under deoree
In euoh suit aball be sold to the ownor 0r said
property, directly or lndlrootly, or to aayona
haring an intorsst thorela, or to any party
other than a taxing unit rhloh la a party to
tho suit, ror less than tk& amount or the ad-
judged valur aforesalC ol said Frojmrty or tha
agzxegate ariountof the juQgnsnts against tho
property in said suit, whlohevor !a lower, and
the net proooeds 0r any sale 0r such property
tade under deorso of oourt ia said suit to any
party other than any such taring unlt shall bo-
long and be aistrlbuted to all taxing units
whloh arm partles to the suit whloh by tho judg-
mnt in said suit have been founC to have tax
liens against suoh property, pro rata aad in
propurtlon to thm mounts of their res?eotlvs
tax liens as established In said judgr;ent,but
any mxooss in the proceeds ol salo over and
above the mount necessary to C&ray the oosts
or suit and sale and ohher expanses hsrelnabova
made abargeabls against suah procoe$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, the applloablo PI% reading:
* . and rnhon suoh property Is sold by
the takig unit purohasing mm, the socoeds
thereot shall be received by it for account Of
ltsetltand all other so?d taring units adjudged
In said suit to have a tax-lien against suoh
property, and after zaayingall oosts and OI-
panssa, shall be tistrlbuted akong suoh taxlng
units pro rata and in proportion to tho amount
or their tax liens against suoh prop8rty as
established In said judgment. Coasant In be-
half or the State 0r 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 at the first Sal0
by a taxing unit, is not sold at private aale, but is there-
artar advmrtised add sold by the sheriff, the distribution
or thm procoeds or the sale 1s detarmlpsd by tls laot son-
tenoe In soot1on 9, raadlng:
.
919
Honorablo ThOr;aBA. 'iiheat,
Fag. 3
"The Fherltt Shall apply tbB proossds from
Such sale,
._ .first, to thm pay.mt 0r all costs
la said unit and all costs and OX~~CB~B or Balm
and 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 tax liens agalast suoh property as OS-
t6bllBhrd In said juQgneat.*
From the above it is quite clear that thm pro-
0eed8 of any salon governed by Art1010 7343b shall be dls-
trlbuted 68 rOiiOW8: First, to the pymnt 0r 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
:iaBhvI11ev. 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
tax sale, it betosnesneoeasary 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 plerelydefines "taxing
U[litB-,Section 2 begins, "In any slit hereafter brought
by or In behalf 0r any taxing unit . . . the 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 the 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 at the t&e t.Se~auitwa8 filed in
SO far as the distribution of the proceeds of the aale and
the Q6&yINAt Ot OOatS are OOnOOrAed.A8 bearing generally
OA the qUe.StiOA We Oite !=%A AAtOAiOV. 33rv, 48 2. ':'. 496,
at pp. 499-500; ztowart V. Lataer, 116 5. 3. 860.
?ald aum or $S.OO, proceeds of said sale, should
be applied to the paymAt of the judgrcentrecoveries pro
rata in proportion to the respeotivs ainountathereof.
very truly yours
I?.Lewis
Glen‘II
lrssirrtant
ci% : Lli
APPROVEZb@bAY3, 1940
ATTORNEY GENXRAL OF TEXAS