By Craddick                                           H.B. No. 2624
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the appraisal and ad valorem taxation of certain types
    1-3  of personal property; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 23.12(f), Tax Code, is amended to read as
    1-6  follows:
    1-7        (f)  The owner of an inventory other than a dealer's motor
    1-8  vehicle <an applicable> inventory as that term is defined in
    1-9  Section 23.12A of this code may elect to have the inventory
   1-10  appraised at its market value as of September 1 of the year
   1-11  preceding the tax year to which the appraisal applies by filing an
   1-12  application with the chief appraiser requesting that the inventory
   1-13  be appraised as of September 1.  The application must clearly
   1-14  describe the inventory to which it applies and be signed by the
   1-15  owner of the inventory.  The application applies to the appraisal
   1-16  of the inventory in each tax year that begins after the next August
   1-17  1 following the date the application is filed with the chief
   1-18  appraiser unless the owner of the inventory by written notice filed
   1-19  with the chief appraiser revokes the application or the ownership
   1-20  of the inventory changes.  A notice revoking the application is
   1-21  effective for each tax year that begins after the next September 1
   1-22  following the date the notice of revocation is filed with the chief
   1-23  appraiser.
    2-1        SECTION 2.  Section 23.12A, Tax Code, is amended to read as
    2-2  follows:
    2-3        Sec. 23.12A.  DEALER'S MOTOR VEHICLE <Special> Inventory;
    2-4  Value.  (a)  In this section:
    2-5              (1)  "Chief appraiser" means the chief appraiser for
    2-6  the appraisal district in which a dealer's motor vehicle inventory
    2-7  is located.  <"Applicable inventory" means an inventory that is
    2-8  held for resale and that consists of individual units of personal
    2-9  property, each unit of which must, as a matter of law, be titled in
   2-10  the name of the retail purchaser and be registered with the Texas
   2-11  Department of Transportation through the office of the county tax
   2-12  assessor-collector.>
   2-13              (2)  "Collector" means the county tax
   2-14  assessor-collector in the county in which a dealer's motor vehicle
   2-15  inventory is located.
   2-16              (3)  "Dealer" means a person who holds a dealer's
   2-17  general distinguishing number issued by the Texas Department of
   2-18  Transportation under the authority of Article 6686, Revised
   2-19  Statutes, or is authorized by law or interstate reciprocity
   2-20  agreement to purchase vehicles in Texas without paying the motor
   2-21  vehicle sales tax.  The term does not include:
   2-22                    (A)  a person who holds a manufacturer's license
   2-23  issued by the Motor Vehicle Board of the Texas Department of
   2-24  Transportation;
   2-25                    (B)  an entity that is owned or controlled by a
    3-1  person who holds a manufacturer's license issued by the Motor
    3-2  Vehicle Board of the Texas Department of Transportation; or
    3-3                    (C)  a dealer whose general distinguishing number
    3-4  issued by the Texas Department of Transportation under the
    3-5  authority of Article 6686, Revised Statutes, prohibits the dealer
    3-6  from selling a vehicle to any person except a dealer.
    3-7              (4)  "Dealer's motor vehicle inventory" means all motor
    3-8  vehicles held for sale by a dealer.
    3-9              (5)  "Dealer-financed sale" means the sale of a motor
   3-10  vehicle in which the seller finances the purchase of the vehicle,
   3-11  is the sole lender in the transaction, and retains exclusively the
   3-12  right to enforce the terms of the agreement evidencing the sale.
   3-13              (6)  "Declaration" means the dealer's motor vehicle
   3-14  inventory declaration form promulgated by the comptroller as
   3-15  required by this section.
   3-16              (7)  "Fleet transaction" means the sale of five or more
   3-17  motor vehicles from a dealer's motor vehicle inventory to the same
   3-18  business entity within one calendar year.
   3-19              (8)  "Motor vehicle" means a fully self-propelled
   3-20  vehicle with at least two wheels which has as its primary purpose
   3-21  the transport of a person or persons, or property, whether or not
   3-22  intended for use on a public street, road, or highway, or a vehicle
   3-23  without automotive power designed for human habitation and for
   3-24  being drawn by a motor vehicle.  The term does not include a
   3-25  vehicle with respect to which the certificate of title has been
    4-1  surrendered in exchange for a salvage certificate in the manner
    4-2  provided by law.
    4-3              (9) <(3)  "Excluded inventory" means that part of an
    4-4  applicable inventory that:>
    4-5                    <(A)  is included in a transaction consisting of
    4-6  five or more units sold to a single business entity that has a
    4-7  manufacturer's or distributor's fleet identification number
    4-8  authorizing the entity to make fleet purchases;>
    4-9                    <(B)  is included in a transaction between
   4-10  dealers; or>
   4-11                    <(C)  consists of vehicles classified as medium
   4-12  or heavy duty trucks of 16,000 pounds gross vehicular weight or
   4-13  more.>
   4-14              <(4)>  "Owner" means a dealer who owes current year
   4-15  vehicle inventory taxes <the person responsible for the payment of
   4-16  property taxes> levied against a dealer's motor vehicle <special>
   4-17  inventory.
   4-18              (10)  "Person" means a natural person, corporation,
   4-19  partnership, or other legal entity.
   4-20              (11) <(5)>  "Sales price" means the total amount of
   4-21  money paid or to be paid for the purchase of a motor vehicle as set
   4-22  forth as "sales price" in the form entitled "Application for Texas
   4-23  Certificate of Title" promulgated by the Texas Department of
   4-24  Transportation.  In a transaction that does not involve the use of
   4-25  that form, the term means an amount of money that is equivalent, or
    5-1  substantially equivalent, to the amount that would appear as "sales
    5-2  price" on the Application for Texas Certificate of Title if that
    5-3  form were involved.
    5-4              (12)  "Subsequent sale" means a dealer-financed sale of
    5-5  a motor vehicle that, at the time of the sale, has been the subject
    5-6  of a dealer-financed sale from the same dealer's motor vehicle
    5-7  inventory in the same calendar year.
    5-8              (13) <(6)  "Special inventory" means that part of an
    5-9  applicable inventory that remains after subtracting units included
   5-10  in excluded inventory.>
   5-11              <(7)>  "Total annual sales" means the total of the
   5-12  sales price from every sale <of units> from a dealer's motor
   5-13  vehicle <special> inventory for a 12-month period <or for that
   5-14  portion of a 12-month period for which the owner of a special
   5-15  inventory is responsible for the payment of property taxes levied
   5-16  against the special inventory>.
   5-17        (b)  For <Except as provided by Subsection (c) of this
   5-18  section, for> the purpose of the computation of property tax, the
   5-19  market value of a dealer's motor vehicle <special> inventory on
   5-20  January 1 is the total annual sales from the dealer's motor vehicle
   5-21  <special> inventory, less sales to dealers, fleet transactions, and
   5-22  subsequent sales, for the 12-month period corresponding to the
   5-23  prior tax year, divided by 12.
   5-24        (c)  For the purpose of the computation of property tax, the
   5-25  market value of the dealer's motor vehicle <a special> inventory of
    6-1  an owner who was not a dealer on January 1 of <with respect to
    6-2  which sales were not made for the entire 12-month period
    6-3  corresponding to> the prior tax year, the chief appraiser shall
    6-4  <may> estimate the market value of the dealer's motor vehicle
    6-5  <special> inventory.  In making the estimate required <allowed> by
    6-6  this subsection the chief appraiser shall extrapolate using sales
    6-7  data, if any, generated by sales from the dealer's motor vehicle
    6-8  <special> inventory in the prior tax year.
    6-9        (d)  Except for dealer's motor vehicle inventory, personal
   6-10  property held by a dealer <Excluded inventory described in
   6-11  Subsection (a)(3)(C) of this section> is appraised as provided by
   6-12  other sections <Section 23.12(a)> of this code.  In the case of a
   6-13  dealer whose sales from dealer's motor vehicle inventory are made
   6-14  predominately to dealers, the chief appraiser shall appraise the
   6-15  dealer's motor vehicle inventory as provided by Section 23.12 of
   6-16  this code.
   6-17        (e)  A dealer is presumed to be an owner of a dealer's motor
   6-18  vehicle inventory on January 1 if, in the 12-month period ending on
   6-19  December 31 of the immediately preceding year, the dealer sold a
   6-20  motor vehicle to a person other than a dealer.  The presumption
   6-21  created by this subsection is not rebutted by the fact that a
   6-22  dealer has no motor vehicles physically on hand for sale from
   6-23  dealer's motor vehicle inventory on January 1.
   6-24        (f)  The comptroller shall promulgate a form entitled
   6-25  Dealer's Motor Vehicle Inventory Declaration.  Except as provided
    7-1  by Section 23.12B(l) of this code, not later than February 1 of
    7-2  each year, or, in the case of a dealer who was not in business on
    7-3  January 1, not later than 30 days after commencement of business,
    7-4  each dealer shall file a declaration with the chief appraiser and
    7-5  file a copy with the collector.  The declaration is sufficient to
    7-6  comply with this subsection if it sets forth the following
    7-7  information:
    7-8              (1)  the name and business address of each location at
    7-9  which the dealer owner conducts business;
   7-10              (2)  each of the dealer's general distinguishing
   7-11  numbers issued by the Texas Department of Transportation;
   7-12              (3)  a statement that the dealer owner is the owner of
   7-13  a dealer's motor vehicle inventory; and
   7-14              (4)  the market value of the dealer's motor vehicle
   7-15  inventory for the current tax year as computed under Section
   7-16  23.12A(b) of this code.
   7-17        (g)  Under the terms provided by this subsection, the chief
   7-18  appraiser may examine the books and records of the holder of a
   7-19  general distinguishing number issued by the Texas Department of
   7-20  Transportation.  A request made under this subsection must be made
   7-21  in writing, delivered personally to the custodian of the records,
   7-22  must provide a period not less than 15 days for the person to
   7-23  respond to the request, and must state that the person to whom it
   7-24  is addressed has the right to seek judicial relief from compliance
   7-25  with the request.  In a request made under this section the chief
    8-1  appraiser may examine:
    8-2              (1)  the document issued by the Texas Department of
    8-3  Transportation showing the person's general distinguishing number;
    8-4              (2)  documentation appropriate to allow the chief
    8-5  appraiser to ascertain the applicability of this section and
    8-6  Section 23.12B of this code to the person;
    8-7              (3)  sales records to substantiate information set
    8-8  forth in the dealer's declaration filed by the person.
    8-9        (h)  If a dealer fails to file a declaration as required by
   8-10  this section, or if, on the declaration required by this section, a
   8-11  dealer reports the sale of fewer than five motor vehicles in the
   8-12  prior year, the chief appraiser shall report that fact to the Texas
   8-13  Department of Transportation.
   8-14        (i)  A dealer who fails to file a declaration required by
   8-15  this section commits an offense.  An offense under this subsection
   8-16  is a misdemeanor punishable by a fine not to exceed $500.  Each day
   8-17  during which a dealer fails to comply with the terms of this
   8-18  subsection is a separate violation.
   8-19        (j)  A person who violates Subsection (g) of this section
   8-20  commits an offense.  An offense under this subsection is a
   8-21  misdemeanor punishable by a fine not to exceed $500.  Each day
   8-22  during which a person fails to comply with the terms of Subsection
   8-23  (g) of this section is a separate violation.
   8-24        (k)  In addition to other penalties provided by law, a dealer
   8-25  who fails to file a declaration required by this section shall
    9-1  forfeit a penalty.  A tax lien attaches to the dealer's business
    9-2  personal property to secure payment of the penalty.  The
    9-3  appropriate district attorney, criminal district attorney, or
    9-4  county attorney shall collect the penalty established by this
    9-5  section in the name of the chief appraiser or collector.  Venue of
    9-6  an action brought under this subsection is in the county in which
    9-7  the violation occurred or in the county in which the owner
    9-8  maintains his principal place of business or residence.  A penalty
    9-9  forfeited under this subsection is $1,000 for each month or part of
   9-10  a month in which a declaration is not filed after it is due.
   9-11        SECTION 3.  Section 23.12B, Tax Code, is amended to read as
   9-12  follows:
   9-13        Sec. 23.12B.  Prepayment of Taxes by Certain Taxpayers.
   9-14  (a)  In this section:
   9-15              (1)  "Aggregate tax rate" means the combined tax rates
   9-16  of all relevant taxing units authorized by law to levy property
   9-17  taxes against a dealer's motor vehicle inventory.
   9-18              (2)  "Chief appraiser" has the meaning given it in
   9-19  Section 23.12A of this code <means the chief appraiser for the
   9-20  appraisal district in which is located an applicable inventory>.
   9-21              (3) <(2)>  "Collector" has the meaning given it in
   9-22  Section 23.12A of this code <means the county tax
   9-23  assessor-collector in the county in which is located a special
   9-24  inventory>.
   9-25              (4)  "Dealer's motor vehicle inventory" has the meaning
   10-1  given it in Section 23.12A of this code.
   10-2              (5)  "Declaration" has the meaning given it in Section
   10-3  23.12A of this code.
   10-4              (6) <(3)  "County aggregate tax rate" means the
   10-5  combined tax rate of all relevant taxing units in a county.>
   10-6              <(4)>  "Owner" has the meaning given it in Section
   10-7  23.12A of this code.
   10-8              (7) <(5)>  "Relevant taxing unit" means a taxing unit,
   10-9  including the county, authorized by law to levy property taxes
  10-10  against a dealer's motor vehicle <special> inventory.
  10-11              (8) <(6)>  "Sales price" has the meaning given it in
  10-12  Section 23.12A of this code.
  10-13              (9)  "Statement" <(7)  "Special inventory" has the
  10-14  meaning given it in Section 23.12A of this code.>
  10-15              <(8)  "Special inventory tax statement"> means the
  10-16  Dealer's Motor Vehicle Inventory Tax Statement filed on a form
  10-17  promulgated by the comptroller <of public accounts> as required by
  10-18  this section.
  10-19              (10)  "Subsequent sale" has the meaning given it in
  10-20  Section 23.12A of this code.
  10-21              (11) <(9)>  "Total annual sales" has the meaning given
  10-22  it in Section 23.12A of this code.
  10-23              (12) <(10)>  "Unit property tax <value> factor" means a
  10-24  number equal to <is> one-twelfth of the prior year <most recent
  10-25  county> aggregate tax rate at the location where a dealer's motor
   11-1  vehicle <for the county in which a special> inventory is located on
   11-2  January 1 of the current year.
   11-3        (b)  Except for a vehicle sold to a dealer, a vehicle
   11-4  included in a fleet transaction, or a vehicle that is the subject
   11-5  of a subsequent sale, an owner or a person who has agreed by
   11-6  contract to pay the owner's current year property taxes levied
   11-7  against the owner's motor vehicle inventory <An owner> shall assign
   11-8  a unit property tax <value> to each motor vehicle <unit> sold from
   11-9  a dealer's motor vehicle <special> inventory.  The unit property
  11-10  tax <value> of each motor vehicle <unit> is determined by
  11-11  multiplying the sales price of the motor vehicle <unit> by the unit
  11-12  property tax <value> factor.  On or before the 10th day of each
  11-13  month the owner shall, together with the statement filed by the
  11-14  owner as provided by this section, deposit with the collector a sum
  11-15  equal to the total of unit property tax <value> assigned to all
  11-16  motor vehicles <units> sold from the dealer's motor vehicle
  11-17  <special> inventory in the prior month to which a unit property tax
  11-18  was assigned.  The money shall be deposited by the collector in or
  11-19  otherwise credited by the collector to the owner's escrow account
  11-20  for prepayment of property taxes as provided by this section.  An
  11-21  escrow account required by this section is used to pay property
  11-22  taxes levied against the dealer's motor vehicle <special>
  11-23  inventory, and the owner shall fund the escrow account as provided
  11-24  by this subsection.
  11-25        (c)  The collector shall maintain the escrow account for each
   12-1  owner in the county depository.  The collector is not required to
   12-2  maintain a separate account in the depository for each escrow
   12-3  account created as provided by this section but shall maintain
   12-4  separate records for each owner.  The collector shall retain any
   12-5  interest generated by the escrow account to defray the cost of
   12-6  administration of the prepayment procedure established by this
   12-7  section.  Interest generated by an escrow account created as
   12-8  provided by this section is the sole property of the collector, and
   12-9  that interest may be used by no entity other than the collector.
  12-10  Interest generated by an escrow account may not be used to reduce
  12-11  or otherwise affect the annual appropriation to the collector that
  12-12  would otherwise be made.
  12-13        (d)  The owner may not withdraw funds <the money> in an <the>
  12-14  escrow account created pursuant to this section.
  12-15        (e)  The comptroller <of public accounts> shall promulgate a
  12-16  form entitled a Dealer's Motor Vehicle <Special> Inventory Tax
  12-17  Statement.  A dealer <The owner of a special inventory> shall
  12-18  complete the form with respect to each motor vehicle <unit> sold.
  12-19  A dealer  <from the owner's applicable inventory and> may use no
  12-20  other form for that purpose.  The statement <form> may include the
  12-21  information the comptroller deems appropriate but shall include at
  12-22  least the following:
  12-23              (1)  a description of the motor vehicle <unit> sold;
  12-24              (2)  <a statement as to whether or not the unit was
  12-25  sold from the owner's special inventory;>
   13-1              <(3)>  the sales price of the motor vehicle <unit>;
   13-2              (3) <(4)>  the unit property tax <value> of the motor
   13-3  vehicle <unit> if any <the unit was sold from the owner's special
   13-4  inventory>; and
   13-5              (4) <(5)>  the reason no unit property tax is assigned
   13-6  <the unit was excluded from the owner's special inventory,> if no
   13-7  unit property tax <value> is assigned.
   13-8        (f)  On or before the 10th day of each month <the owner of> a
   13-9  dealer <special inventory> shall file with the collector <chief
  13-10  appraiser> the <special inventory tax> statement covering the sale
  13-11  of each motor vehicle sold by the dealer <for each unit sold by the
  13-12  owner from the owner's applicable inventory> in the prior month.  A
  13-13  dealer <An owner> shall file a copy of the statement with the chief
  13-14  appraiser and retain documentation relating to the disposition of
  13-15  each motor vehicle <unit> sold <from an applicable inventory,
  13-16  including documentation relating to the exclusion of a unit from
  13-17  special inventory and shall make that documentation available to
  13-18  the chief appraiser upon request>.  A chief appraiser or collector
  13-19  may examine documents held by a dealer as provided by this
  13-20  subsection in the same manner, and subject to the same provisions,
  13-21  as are set forth in Section 23.12A(g) of this code.
  13-22        (g)  Except as provided by this subsection, the requirements
  13-23  of Subsection (f) of this section apply to all dealers, without
  13-24  regard to whether or not the dealer owes vehicle inventory tax for
  13-25  the current year.  A dealer who owes no vehicle inventory tax for
   14-1  the current year because he was not in business on January 1:
   14-2              (1)  shall file the statement required by this section
   14-3  showing the information required by this section for each month
   14-4  during which the dealer is in business; and
   14-5              (2)  may neither assign a unit property tax to a motor
   14-6  vehicle sold by the dealer nor remit money with the statement
   14-7  unless pursuant to the terms of a contract as provided by
   14-8  Subsection (l) of this section.
   14-9        (h)  A collector may establish a procedure, voluntary or
  14-10  mandatory, by which the unit property tax of a vehicle is paid and
  14-11  deposited into an owner's escrow account at the time of processing
  14-12  the transfer of title to the motor vehicle.
  14-13        (i) <(g)>  A relevant taxing unit shall, on its tax bill
  14-14  prepared for the owner of a dealer's motor vehicle <special>
  14-15  inventory, separately itemize the taxes levied against the dealer's
  14-16  motor vehicle <special> inventory.  When the tax bill is prepared
  14-17  by a relevant taxing unit for a dealer's motor vehicle <special>
  14-18  inventory, the assessor for the relevant taxing unit, or an entity,
  14-19  if any, other than the collector, that collects taxes on behalf of
  14-20  the taxing unit, shall provide the collector a true and correct
  14-21  copy of the tax bill sent to the owner, including taxes levied
  14-22  against the dealer's motor vehicle <owner's special> inventory.
  14-23  The collector shall apply the money in the owner's escrow account
  14-24  to the taxes imposed and deliver a tax receipt to the owner.  The
  14-25  collector shall apply the amount to each relevant taxing unit in
   15-1  proportion to the amount of taxes levied, and the assessor of each
   15-2  relevant taxing unit shall apply the funds received from the
   15-3  collector to the taxes owed by the owner.
   15-4        (j) <(h)>  If the amount in the escrow account is not
   15-5  sufficient to pay the taxes in full, the collector shall apply the
   15-6  money to the taxes and deliver to the owner a tax receipt for the
   15-7  partial payment and a tax bill for the amount of the deficiency
   15-8  <unpaid amount> together with a statement that the owner must remit
   15-9  to the collector the balance of the total tax due.
  15-10        (k) <(i)>  The collector shall remit to each relevant taxing
  15-11  unit the total amount collected by the collector in deficiency
  15-12  payments.  The assessor of each relevant taxing unit shall apply
  15-13  those funds to the taxes owed by the owner.  Taxes that are due but
  15-14  not received by the collector <and remitted by the collector to
  15-15  each relevant taxing unit> on or before January 31 are delinquent.
  15-16  Not later than February 15 the collector shall distribute to
  15-17  relevant taxing units in the manner set forth in this section all
  15-18  funds collected pursuant to the authority of this section and held
  15-19  in escrow by the collector as provided by this section.  This
  15-20  section does not impose a duty on a collector to collect delinquent
  15-21  taxes that the collector is not otherwise obligated by law or
  15-22  contract to collect.
  15-23        <(j)  The collector shall annually distribute among the
  15-24  relevant taxing units, in proportion to the taxes levied by each
  15-25  against the special inventory, funds, if any, that remain in the
   16-1  escrow account after the payment of all property taxes due.>
   16-2        <(k)  Not later than February 1 of each year, or, in the case
   16-3  of an owner who was not in business on January 1, not later than 30
   16-4  days after commencement of business, each owner shall file a
   16-5  special inventory declaration with the chief appraiser and file a
   16-6  copy with the county tax assessor-collector.  The declaration is
   16-7  sufficient to comply with this subsection if it sets forth the
   16-8  following information:>
   16-9              <(1)  the name and business address of each location at
  16-10  which the owner conducts business;>
  16-11              <(2)  each of the owner's general distinguishing
  16-12  numbers, if the owner has a general distinguishing number issued by
  16-13  the Texas Department of Transportation;>
  16-14              <(3)  a statement that the owner is the owner of a
  16-15  special inventory; and>
  16-16              <(4)  the market value of the inventory for the current
  16-17  tax year as computed under Section 23.12A(b) of this code.>
  16-18        (l)  A person who acquires the business or assets of an owner
  16-19  may, by contract, agree to pay the current year vehicle inventory
  16-20  taxes owed by the owner.  The owner who owes the current year tax
  16-21  and the person who acquires the business or assets of the owner
  16-22  shall jointly notify the chief appraiser and the collector of the
  16-23  terms of the agreement and of the fact that the other person has
  16-24  agreed to pay the current year vehicle inventory taxes owed by the
  16-25  dealer.  The chief appraiser and the collector shall adjust their
   17-1  records accordingly.  Notwithstanding the terms of Section 23.12A
   17-2  of this code, a person who agrees to pay current year vehicle
   17-3  inventory taxes as provided by this subsection is not required to
   17-4  file a declaration until the year following the acquisition.  This
   17-5  subsection does not relieve the selling owner of the tax liability.
   17-6  <An owner who fails to file a special inventory declaration
   17-7  required by this section commits an offense.  An offense under this
   17-8  subsection is a misdemeanor punishable by a fine not to exceed
   17-9  $500. A fine collected under this subsection may be used only by
  17-10  the collector to defray the cost of enforcing this section.  Each
  17-11  day during which an owner fails to comply with the terms of this
  17-12  subsection is a separate violation.>
  17-13        (m)  A dealer <An owner> who fails to file a <special
  17-14  inventory tax> statement as required by this section commits an
  17-15  offense.  An offense under this subsection is a misdemeanor
  17-16  punishable by a fine not to exceed $100.   <A fine collected under
  17-17  this subsection may be used only by the collector to defray the
  17-18  cost of enforcing this section.>  Each day during which a dealer
  17-19  <an owner> fails to comply with the terms of this subsection is a
  17-20  separate violation.
  17-21        (n)  In addition to other penalties provided by law, a dealer
  17-22  who fails to file a statement as required by this section shall
  17-23  forfeit a penalty.  A tax lien attaches to the owner's business
  17-24  personal property to secure payment of the penalty.  The
  17-25  appropriate district attorney, criminal district attorney, or
   18-1  county attorney shall collect the penalty established by this
   18-2  section in the name of the chief appraiser or collector.  Venue of
   18-3  an action brought under this subsection is in the county in which
   18-4  the violation occurred or in the county in which the owner
   18-5  maintains his principal place of business or residence.  A penalty
   18-6  forfeited under this subsection is $500 for each month or part of a
   18-7  month in which a statement is not filed after it is due.
   18-8        (o)  An owner who fails to remit unit property taxes <the
   18-9  amounts> due as required by this section <Subsection (b) of this
  18-10  section> shall pay a penalty of five percent of the amount due.  If
  18-11  the amount is not paid within 10 days after the due date, the owner
  18-12  shall pay an additional penalty of five percent of the amount due.
  18-13  Notwithstanding the terms of this section, unit property taxes paid
  18-14  on or before January 31 of the year following the date on which
  18-15  they are due are not delinquent.  The collector, the collector's
  18-16  designated agent, or the county or district attorney shall enforce
  18-17  the terms of this subsection<, and a penalty collected under this
  18-18  subsection may be used only by the collector to defray the cost of
  18-19  enforcing this section>. A penalty under this subsection is in
  18-20  addition to any other penalty provided by law <that may be due> if
  18-21  the owner's taxes are delinquent <not paid in full by January 31>.
  18-22        (p)  Fines collected pursuant to the authority of this
  18-23  section shall be deposited in the county depository to the credit
  18-24  of the general fund.  Penalties collected pursuant to the authority
  18-25  of this section are the sole property of the collector, may be used
   19-1  by no entity other than the collector, and may not be used to
   19-2  reduce or otherwise affect the annual appropriation to the
   19-3  collector that would otherwise be made.
   19-4        SECTION 4.  Chapter 23, Subchapter B, Tax Code, is amended by
   19-5  adding Section 23.12C to read as follows:
   19-6        Sec. 23.12C.  DECLARATIONS AND STATEMENTS CONFIDENTIAL.  (a)
   19-7  In this section:
   19-8              (1)  "Collector" has the meaning given it in Section
   19-9  23.12B of this code.
  19-10              (2)  "Chief appraiser" has the meaning given it in
  19-11  Section 23.12B of this code.
  19-12              (3)  "Dealer" has the meaning given it in Section
  19-13  23.12A of this code.
  19-14              (4)  "Declaration" has the meaning given it in Section
  19-15  23.12B of this code.
  19-16              (5)  "Owner" has the meaning given it in Section 23.12A
  19-17  of this code.
  19-18              (6)  "Statement" has the meaning given it in Section
  19-19  23.12B of this code.
  19-20        (b)  Except as provided by this section, a declaration or
  19-21  statement filed with a chief appraiser or collector as required by
  19-22  Section 23.12A or Section 23.12B of this code is confidential and
  19-23  not open to public inspection.  A declaration or statement and the
  19-24  information contained in either may not be disclosed to anyone
  19-25  except an employee of the appraisal office who appraises the
   20-1  property or to an employee of the county tax assessor-collector
   20-2  involved in the maintenance of the owner's escrow account.
   20-3        (c)  Information made confidential by this section may be
   20-4  disclosed:
   20-5              (1)  in a judicial or administrative proceeding
   20-6  pursuant to a lawful subpoena;
   20-7              (2)  to the person who filed the declaration or
   20-8  statement or to that person's representative authorized by the
   20-9  person in writing to receive the information;
  20-10              (3)  to the comptroller or an employee of the
  20-11  comptroller authorized by the comptroller to receive the
  20-12  information;
  20-13              (4)  to a collector or chief appraiser;
  20-14              (5)  to a district attorney, criminal district attorney
  20-15  or county attorney involved in the enforcement of a penalty imposed
  20-16  pursuant to Section 23.12A or Section 23.12B of this code;
  20-17              (6)  for statistical purposes if in a form that does
  20-18  not identify specific property or a specific property owner; or
  20-19              (7)  if and to the extent that the information is
  20-20  required for inclusion in a public document or record that the
  20-21  appraisal or collection office is required by law to prepare or
  20-22  maintain.
  20-23        (d)  A person who knowingly permits inspection of a
  20-24  declaration or statement by a person not authorized to inspect the
  20-25  declaration or statement or who discloses confidential information
   21-1  contained in the declaration or statement to a person not
   21-2  authorized to receive the information commits an offense.  An
   21-3  offense under this subsection is a Class B misdemeanor.
   21-4        SECTION 5.  This Act takes effect January 1, 1996.
   21-5        SECTION 6.  The importance of this legislation and the
   21-6  crowded condition of the calendars in both houses create an
   21-7  emergency and an imperative public necessity that the
   21-8  constitutional rule requiring bills to be read on three several
   21-9  days in each house be suspended, and this rule is hereby suspended.