Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2173 eliminates the "safe harbor" protection of a clear tax certificate for property transfers between related parties (family, corporate subsidiaries, employer/employee) where a homestead exemption was erroneously claimed. Effective September 1, 2025, unpaid taxes, penalties, and interest will remain a valid lien on the property despite a clear certificate, shifting significant liability risk to buyers in inter-company and family office transactions.
Sen. Tan Parker·Senate Bill·Regular Session
County Appraisal Districts (Chief Appraisers) • Tax Assessor-Collectors
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Purchase and Sale Agreements (PSAs) for residential assets must be amended immediately:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB2173
SB2173 eliminates the "safe harbor" protection of a clear tax certificate for property transfers between related parties (family, corporate subsidiaries, employer/employee) where a homestead exemption was erroneously claimed. Effective September 1, 2025, unpaid taxes, penalties, and interest will remain a valid lien on the property despite a clear certificate, shifting significant liability risk to buyers in inter-company and family office transactions.
SB2173 was authored by Texas Senator Tan Parker during the Regular Session.
SB2173 was signed into law by Governor Greg Abbott on May 28, 2025.
SB2173 is enforced by County Appraisal Districts (Chief Appraisers) and Tax Assessor-Collectors.
The regulatory priority for SB2173 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2173 is estimated as "low". This may vary based on industry and implementation requirements.
SB2173 addresses topics including taxation, taxation--property-appraisals & appraisal districts, taxation--property-assessment & collection, taxation--property-exemptions and property interests.
Key dates for SB2173: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB2173 establishes the following penalties: civil/financial liability penalty of Full amount of delinquent taxes, penalties, and interest previously thought extinguished for Reliance on an erroneous tax certificate regarding canceled homestead exemptions during property transfers between related parties (1st-degree relatives, employer/employee, parent/subsidiary, trust/beneficiary).. Consult with legal counsel for specific applicability to your situation.
SB2173 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
