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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of an owner of residential rental |
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property on which a tenant has defaulted on the obligation to pay |
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rent during the COVID-19 pandemic to pay the ad valorem taxes |
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imposed on the property in installments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 31, Tax Code, is amended by adding |
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Section 31.033 to read as follows: |
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Sec. 31.033. INSTALLMENT PAYMENT OF TAXES ON RESIDENTIAL |
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REAL PROPERTY RENTED TO TENANT AFFECTED BY COVID-19. (a) In this |
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section, "COVID-19" means the 2019 novel coronavirus disease. |
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(b) This section applies only to taxes imposed by a taxing |
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unit in a tax year on property that: |
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(1) is used for residential purposes; |
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(2) has fewer than five living units; and |
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(3) is leased or rented to a tenant who: |
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(A) as a result of the COVID-19 pandemic has |
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defaulted on the tenant's obligation to pay rent on the property; |
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and |
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(B) may not be evicted from the property under a |
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local, state, or federal order limiting or prohibiting evictions |
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for a specified period. |
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(c) A person may pay a taxing unit's taxes imposed on |
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property described by Subsection (b) in 12 or 18 equal installments |
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without penalty or interest if the first installment is paid before |
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the delinquency date and is accompanied by a notice to the taxing |
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unit that the person will pay the remaining taxes in 11 or 17 equal |
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monthly installments, as applicable. The notice must be |
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accompanied by an affidavit signed by the person stating that all or |
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part of the property on which the taxes are due is leased or rented |
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to a tenant who has defaulted on the tenant's obligation to pay rent |
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as a result of the COVID-19 pandemic and who may not be evicted from |
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the property under a local, state, or federal order. |
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(d) If the delinquency date is February 1, the second |
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installment must be paid before March 1, and each subsequent |
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installment must be paid before the first day of each subsequent |
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month. |
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(e) If the delinquency date is a date other than February 1, |
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the second installment must be paid before the first day of the |
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first month after the delinquency date, and each subsequent |
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installment must be paid before the first day of each subsequent |
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month. |
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(f) If the person fails to make a payment before the |
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applicable due date provided by this section, the unpaid |
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installment is delinquent and incurs a penalty of six percent and |
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interest as provided by Section 33.01(c). The penalty provided by |
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Section 33.01(a) does not apply to the unpaid installment. |
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(g) A person may pay more than the amount due for each |
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installment and the amount in excess of the amount due shall be |
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credited to the next installment. A person may not pay less than the |
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total amount due for each installment unless the collector provides |
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for the acceptance of partial payments under this section. If the |
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collector accepts a partial payment, penalties and interest are |
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incurred only by the amount of each installment that remains unpaid |
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on the applicable due date. |
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(h) The comptroller shall adopt rules to implement this |
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section. |
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(i) This section expires January 1, 2024. |
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SECTION 2. This Act applies only to ad valorem taxes for |
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which the delinquency date is on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2021. |