Relating to the effect of a tax certificate accompanying a transfer of certain property.

SB 2173 modifies Texas Tax Code Section 31.08 to clarify when a tax lien on property is extinguished after a transfer. It states that if a tax certificate incorrectly claims no delinquent taxes are owed (due to an erroneously granted homestead exemption later canceled), the new property owner is relieved of liability for those taxes. However, this relief does not apply if the transfer occurs between related individuals (e.g., family), an employer and employee, a parent company and subsidiary, or a trust and its beneficiary. The law applies only to tax certificates issued on or after September 1, 2025, and does not affect certificates issued before that date.