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.