BILL ANALYSIS H.B. 2197 By: Stiles (Zaffirini) Finance 05-23-95 Senate Committee Report (Unamended) BACKGROUND Under current law, citizens affected by a disaster, if they are unable to pay property taxes in full, are subject to penalties when paying the taxes in installments. PURPOSE As proposed, H.B. 2197 allows a person whose residential property is damaged by a disaster and which is within a declared disaster area to pay property taxes on the property in installments without penalty. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the comptroller of public accounts under SECTION 1 (Section 31.032(f), Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.032, as follows: Sec. 31.032. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN DISASTER AREA. (a) Provides that this section applies to certain residential properties in a disaster area that have been damaged as a direct result of the disaster and to taxes imposed on the property before the first anniversary of the disaster. (b) Authorizes a person, if the person pays at least one-fourth of the taxes due on the property accompanied by a notice that the remaining taxes will be paid in installments, to pay the remaining taxes without penalty or interest in three equal installments. Sets a payment schedule for payment of the installments. (c) Provides that if the person fails to make a payment before the applicable date, the unpaid amount is delinquent and incurs a penalty of 12 percent and interest. (d) Authorizes a person to pay more than the amount due for each installment. Prohibits a person from paying less than the total amount due for each installment unless the collector provides for the acceptance of partial payments. Provides that if the collector accepts partial payment, penalties and interest are incurred only by the amount of each installment that remains unpaid. (e) Requires the collector, if the delinquency date is extended past May 1, to extend each installment deadline by the number of months the delinquency date was postponed. Prohibits the collector from extending the third installment deadline beyond December 31. (f) Requires the comptroller to adopt rules to implement this section. (g) Defines "disaster" and disaster area." SECTION 2. Emergency clause. Effective date: upon passage.