Enrolled Bill Summary

House Bill 1597	House Author:  Gonzalez, Naomi et al.
Effective:  9-1-13	Senate Sponsor:  Hinojosa

            House Bill 1597 amends the Tax Code to set a March 1 deadline for a homeowner who is eligible to pay the property taxes on the homeowner's residence homestead in four equal installments on the basis of age, disability, or status as a disabled veteran or as the surviving spouse of a disabled veteran and who elects to do so to make the first installment payment and to notify the taxing unit that the remaining taxes will be paid in three equal installments.

Current law authorizes a property tax collector to enter into an agreement with a delinquent taxpayer for payment of the tax, penalties, and interest in installments. The bill requires the collector to do so on request by a person delinquent in the payment of the tax on a residence homestead if the person has not entered into such an installment agreement with the collector in the preceding 24 months. The bill requires the agreement, in addition to other terms, to provide for payments to be made in equal monthly installments and to extend for a period of at least 12 months and establishes that a penalty does not accrue on the unpaid balance during the period of the installment agreement unless the owner fails to make a payment as required by the agreement, in which case a penalty accrues as if there were no agreement. The bill requires a notice of delinquency to advise the recipient of a delinquent taxpayer's right to enter into an installment agreement for payment of the delinquent taxes and requires the collector for a taxing unit to deliver such a notice to a person who is in breach of an installment agreement and to any other owner of an interest in the property subject to the agreement whose name appears on the delinquent tax roll before the collector may seize and sell the property or file a suit to collect a delinquent tax subject to the agreement.

House Bill 1597 amends the Property Code to establish that a debtor is not in default under a deed of trust or other contract lien on the debtor's residence for delinquent property taxes if the debtor notified the applicable loan mortgage servicer of the intent to enter into an installment agreement for the payment of those taxes with the taxing unit at least 10 days before entering into the agreement and if the property is protected from seizure and sale and a suit to collect a delinquent tax on the property is prohibited. The bill authorizes a notified mortgage servicer to pay the taxes subject to the installment agreement at any time and requires a notified mortgage servicer who gives the debtor notice of the mortgage servicer's intent to accelerate the note securing the deed of trust or other contract lien as a result of the tax delinquency subject to the installment agreement to rescind the notice of intent if the debtor enters into the agreement not later than the 30th day after the date the debtor delivers the notice.