BILL ANALYSIS



H.B. 2197
By: Stiles
April 21, 1995
Committee Report (Amended)


BACKGROUND

Section 31.031, Tax Code, allows persons 65 years of age and older
to pay property taxes in installments without penalty or interest. 
The property must be owned and occupied as a  residence homestead
by the person, and one fourth of the taxes must be paid by the due
date and accompanied by a notice that the remainder will be paid in
three equal installments.  The three installments are due April 1,
June 1 and before August 1.

Section 31.07 authorizes a tax collector to adopt a policy of
accepting partial payments of property taxes, but specifies that
acceptance of a partial payment does not affect the date the tax
becomes delinquent, and penalties and interest accrue on the unpaid
balance.

Section 418.004, Government Code, defines "disaster" as "the
occurrence or imminent threat of widespread or severe damage,
injury, or loss of life or property resulting from any natural or
man-made cause, including fire, flood, earthquake, wind, storm,
wave action, oil spill or other water contamination, volcanic
activity, epidemic, air contamination, blight, drought,
infestation, explosion, riot, hostile military or paramilitary
action, other public calamity requiring emergency action, or energy
emergency."  Under Chapter 418, the Governor by executive order or
proclamation may declare a state of disaster.

Section 151.350, Tax Code, defines "disaster area" as an area
declared a disaster by the Governor under Chapter 418, Government
Code, or an area declared a disaster area by the president of the
United States under 42 U.S.C Section 5141.

In October of 1994, extensive flooding occurred in Southeast Texas. 
Because this disaster occurred late in the year, property owners
were faced with paying their property taxes in full or, if the tax
collector accepted partial payment, paying penalty and interest on
the unpaid balance.

PURPOSE

This bill would allow persons to pay property taxes in installments
without penalty or interest for residential property with fewer
than five units located in a disaster area, that was damaged by the
disaster.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.032
           INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN DISASTER
           AREA.

           (a) Applies this section to real property that is
           homestead property or used for residential purposes with
           fewer than five units, located in a disaster area, and
           has been damaged by the disaster.  Also specifies that
           taxes are imposed before the first anniversary of the
           disaster.


           (b) Provides for payment of one-fourth of the taxes
           accompanied by notice that the remaining payments will
           be made in installments (without penalty or interest);
           requires payment in three equal installments by the
           specified dates.

           (c) Provides that if the installment payments are not
           paid in time, the unpaid amount becomes delinquent, and
           penalty and interest will be charged.

           (d) Allows overpayments to be made and applied to the
           next installment; authorizes the collector to accept
           partial payment of installments, and impose penalty and
           interest on the unpaid balance.

           (e) Provides for later installment deadlines if the
           delinquency date is postponed to May 1 or a later date.

           (f) Requires the comptroller to adopt rules to implement
           this section.

           (g) Defines "disaster" and "disaster area" for the
           purposes of this section.

SECTION 2. Emergency clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1 would provide that extended installment
deadlines may not extend beyond December 31.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on March 28, 1995.  Representative Wolens
explained the bill.  Without objection, H.B. 2197 was left pending
before the committee.

On April 18, 1995, the committee met in a public hearing, and H.B.
2197 was laid out on pending business.  The committee considered
amendment #1 by Representative Heflin.  Without objection, the
committee adopted committee amendment #1.  By a record vote of 8
ayes, 0 nays, 0 present not voting and 3 absent, the committee
voted to report H.B. 2197 to the House with amendment with the
recommendation that it do pass.