BILL ANALYSIS

Senate Research Center	S.B. 1446
	By: Gutierrez
	Local Government
	4/23/2021
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Due to various reasons and circumstances, homeowners fall behind in making the property tax payments for their home. A taxing unit is allowed to enter into a contract with an attorney or law firm to collect those delinquent taxes for the taxing unit. The attorney or law firm may be paid compensation for their efforts, said compensation may not exceed 20 percent of the amount of the delinquent tax, penalty, and interest collected. 

S.B. 1446 seeks to reduce the compensation amount allowed to 15 percent of the amount of the delinquent tax, penalty, and interest collected. 

As proposed, S.B. 1446 amends current law relating to the collection of delinquent property taxes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 6.30(c), Tax Code, as follows:

(c) Authorizes the governing body of a taxing unit to contract with any competent attorney to represent the taxing unit to enforce the collection of delinquent taxes. Provides that the attorney's compensation is set in the contract, but prohibits the total amount of compensation provided from exceeding 15 percent, rather than 20 percent, of the amount of delinquent tax, penalty, and interest collected. Makes a nonsubstantive change.

SECTION 2. Effective date: January 1, 2022.