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.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 23.12(f), Property Tax Code, is amended
    1-6  to read as 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, Property Tax Code, is amended to
    2-2  read as follows:
    2-3        Sec. 23.12A.  DEALER'S MOTOR VEHICLE <Special> Inventory;
    2-4  Value.
    2-5        (a)  In this section:
    2-6              (1)  "Chief appraiser" means the chief appraiser for
    2-7  the appraisal district in which a dealer's motor vehicle inventory
    2-8  is located.  <"Applicable inventory" means an inventory that is
    2-9  held for resale and that consists of individual units of personal
   2-10  property, each unit of which must, as a matter of law, be titled in
   2-11  the name of the retail purchaser and be registered with the Texas
   2-12  Department of Transportation through the office of the county tax
   2-13  assessor-collector.>
   2-14              (2)  "Collector" means the county tax
   2-15  assessor-collector in the county in which a dealer's motor vehicle
   2-16  inventory is located.
   2-17              (3)  "Comptroller" means the Comptroller of Public
   2-18  Accounts of Texas.
   2-19              (4) <(2)>  "Dealer" means a person who holds a dealer's
   2-20  general distinguishing number issued by the Texas Department of
   2-21  Transportation under the authority of Article 6686, Revised
   2-22  Statutes, or is authorized by law or interstate reciprocity
   2-23  agreement to purchase vehicles in Texas without paying the motor
   2-24  vehicle sales tax.  The term does not include:
   2-25                    (A)  a person who holds a manufacturer's license
    3-1  issued by the Motor Vehicle Board of the Texas Department of
    3-2  Transportation;
    3-3                    (B)  an entity that is owned or controlled by a
    3-4  person who holds a manufacturer's license issued by the Motor
    3-5  Vehicle Board of the Texas Department of Transportation; or
    3-6                    (C)  a dealer whose general distinguishing number
    3-7  issued by the Texas Department of Transportation under the
    3-8  authority of Article 6686, Revised Statutes, prohibits the dealer
    3-9  from selling a vehicle to any person except a dealer.
   3-10              (5)  "Dealer's motor vehicle inventory" means all motor
   3-11  vehicles held for sale by a dealer.
   3-12              (6) <(3)>  <"Excluded inventory" means that part of an
   3-13  applicable inventory that:>
   3-14                    <(A)  is included in a transaction consisting of
   3-15  five or more units sold to a single business entity that has a
   3-16  manufacturer's or distributor's fleet identification number
   3-17  authorizing the entity to make fleet purchases;>
   3-18                    <(B)  is included in a transaction between
   3-19  dealers; or>
   3-20                    <(C)  consists of vehicles classified as medium
   3-21  or heavy duty trucks of 16,000 pounds gross vehicular weight or
   3-22  more>
   3-23                    "Declaration" means the dealer's motor vehicle
   3-24  inventory declaration form promulgated by the comptroller as
   3-25  required by this section.
    4-1              (7)  "Fleet transaction" means the sale of five or more
    4-2  motor vehicles from a dealer's motor vehicle inventory to the same
    4-3  business entity within one calendar year.
    4-4              (8)  "Motor vehicle" means a fully self-propelled
    4-5  vehicle with at least two wheels which has as its primary purpose
    4-6  the transport of a person or persons, or property, whether or not
    4-7  intended for use on a public street, road, or highway.
    4-8              (9) <(4)>  "Owner" means a dealer who owes current year
    4-9  vehicle inventory taxes <the person responsible for the payment of
   4-10  property taxes> levied against a dealer's motor vehicle <special>
   4-11  inventory.
   4-12              (10)  "Person" means a natural person, corporation,
   4-13  partnership, or other legal entity.
   4-14              (11) <5>  "Sales price" means the total amount of money
   4-15  paid or to be paid for the purchase of a motor vehicle as set forth
   4-16  as "sales price" in the form entitled "Application for Texas
   4-17  Certificate of Title" promulgated by the Texas Department of
   4-18  Transportation.  In a transaction that does not involve the use of
   4-19  that form, the term means an amount of money that is equivalent, or
   4-20  substantially equivalent, to the amount that would appear as "sales
   4-21  price" on the Application for Texas Certificate of Title if that
   4-22  form were involved.
   4-23              <(6)  "Special inventory" means that part of an
   4-24  applicable inventory that remains after subtracting units included
   4-25  in excluded inventory.>
    5-1              (12)  "Dealer-financed sale" means the sale of a motor
    5-2  vehicle in which the seller finances the purchase of the vehicle,
    5-3  is the sole lender in the transaction, and retains exclusively the
    5-4  right to enforce the terms of the agreement evidencing the sale.
    5-5              (13)  "Subsequent sale" means a dealer-financed sale of
    5-6  a motor vehicle that, at the time of the sale, has been the subject
    5-7  of a dealer-financed sale from the same dealer's motor vehicle
    5-8  inventory in the same calendar year.
    5-9              (14) <(7)>  "Total annual sales" means the total of the
   5-10  sales price from every sale of units from a dealer's motor vehicle
   5-11  <special> inventory for a 12-month period <or for that portion of a
   5-12  12-month period for which the owner of a special inventory is
   5-13  responsible for the payment of property taxes levied against the
   5-14  special inventory>.
   5-15        (b)  Except as provided by <Subsection (c)of> this section,
   5-16  for the purpose of the computation of property tax, the market
   5-17  value of a dealer's motor vehicle <special> inventory on January 1
   5-18  is the total annual sales from the dealer's motor vehicle <special>
   5-19  inventory for the 12-month period corresponding to the prior tax
   5-20  year, divided by 12.
   5-21        (c)  For the purpose of the computation of property tax, the
   5-22  market value of <a> the dealer's motor vehicle <special> inventory
   5-23  of an owner who was not a dealer on January 1 of <with respect to
   5-24  which sales were not made for the entire 12-month period
   5-25  corresponding to> the prior tax year, the chief appraiser shall
    6-1  <may> estimate the market value of the dealer's motor vehicle
    6-2  <special> inventory.  In making the estimate required <allowed> by
    6-3  this subsection the chief appraiser shall extrapolate using sales
    6-4  data, if any, generated by sales from the dealer's motor vehicle
    6-5  <special> inventory in the prior tax year.
    6-6        (d)  Except for dealer's motor vehicle inventory, personal
    6-7  property held by a dealer <Excluded inventory described in
    6-8  Subsection (a)(3)(C) of this section> is appraised as provided by
    6-9  Section 23.12(a) of this code.  In the case of a dealer whose sales
   6-10  from dealer's motor vehicle inventory are made predominately to
   6-11  dealers, the chief appraiser may appraise the dealer's motor
   6-12  vehicle inventory as provided by Section 23.12 of this code.
   6-13        (e)  In calculating the market value of a dealer's motor
   6-14  vehicle inventory, the owner shall subtract from total annual
   6-15  sales:
   6-16              (1)  sales to dealers;
   6-17              (2)  fleet transactions; and
   6-18              (3)  subsequent sales.
   6-19        (f)  Unless a chief appraiser determines otherwise as
   6-20  provided by Subsection (d) of this section, a dealer is presumed to
   6-21  be an owner of a dealer's motor vehicle inventory on January 1 if,
   6-22  in the 12-month period ending on December 31 of the immediately
   6-23  preceding year, the dealer sold a motor vehicle to a person other
   6-24  than a dealer.  The presumption created by this subsection is not
   6-25  rebutted by the fact that a dealer has no motor vehicles physically
    7-1  on hand for sale from dealer's motor vehicle inventory on January
    7-2  1.
    7-3        (g)  The comptroller shall promulgate a form entitled
    7-4  Dealer's Motor Vehicle Inventory Declaration.  Not later than
    7-5  February 1 of each year, or, in the case of a dealer who was not in
    7-6  business on January 1, not later than 30 days after commencement of
    7-7  business, each dealer shall file a declaration with the chief
    7-8  appraiser and file a copy with the collector.  The declaration is
    7-9  sufficient to comply with this subsection if it sets forth the
   7-10  following information:
   7-11              (1)  the name and business address of each location at
   7-12  which the dealer owner conducts business;
   7-13              (2)  each of the dealer's general distinguishing
   7-14  numbers issued by the Texas Department of Transportation;
   7-15              (3)  a statement that the dealer owner is the owner of
   7-16  a dealer's motor vehicle inventory; and
   7-17              (4)  the market value of the dealer's motor vehicle
   7-18  inventory for the current tax year as computed under Section
   7-19  23.12A(b) of this code.
   7-20        (h)  When requested to do so by the chief appraiser, the
   7-21  holder of a general distinguishing number issued by the Texas
   7-22  Department of Transportation shall produce for inspection by the
   7-23  chief appraiser:
   7-24              (1)  the document issued by the Texas Department of
   7-25  Transportation showing the person's general distinguishing number;
    8-1              (2)  documentation appropriate to allow the chief
    8-2  appraiser to ascertain the applicability of this section and
    8-3  Section 23.12B of this code to the person;
    8-4              (3)  documentation necessary to substantiate
    8-5  information set forth in the dealer's declaration filed by the
    8-6  person.
    8-7        (i)  If on the declaration required by this section a dealer
    8-8  reports the sale of fewer than five motor vehicles in the prior
    8-9  year the chief appraiser shall report that fact to the Texas
   8-10  Department of Transportation.
   8-11        (j)  A dealer who fails to file a declaration required by
   8-12  this section commits an offense.  An offense under this subsection
   8-13  is a misdemeanor punishable by a fine not to exceed $500.  Each day
   8-14  during which a dealer fails to comply with the terms of this
   8-15  subsection is a separate violation.
   8-16        (k)  A person who violates Subsection (h) of this section
   8-17  commits an offense.  An offense under this subsection is a
   8-18  misdemeanor punishable by a fine not to exceed $500.  Each day
   8-19  during which a person fails to comply with the terms of Subsection
   8-20  (h) of this section is a separate violation.
   8-21        (l)  In addition to other penalties provided by law, a dealer
   8-22  who fails to file a declaration required by this section shall
   8-23  forfeit a penalty.  A tax lien attaches to the dealer's business
   8-24  personal property to secure payment of the penalty.  The
   8-25  appropriate district attorney, criminal district attorney, or
    9-1  county attorney shall collect the penalty established by this
    9-2  section in the name of the chief appraiser or collector.  Venue of
    9-3  an action brought under this subsection is in the county in which
    9-4  the violation occurred or in the county in which the owner
    9-5  maintains his principal place of business or residence.  A penalty
    9-6  forfeited under this subsection is $1000 for each month or part of
    9-7  a month in which a declaration is not filed after it is due.
    9-8        SECTION 3.  Section 23.12B, Property Tax Code, is amended to
    9-9  read as follows:
   9-10        Sec. 23.12B.  Prepayment of Taxes by Certain Taxpayers
   9-11        (a)  In this section:
   9-12              (1)  "Aggregate tax rate" means the combined tax rates
   9-13  of all relevant taxing units authorized by law to levy property
   9-14  taxes against a dealer's motor vehicle inventory.
   9-15              (2) <(1)>  "Chief appraiser" has the meaning given it
   9-16  in Section 23.12A of this code <means the chief appraiser for the
   9-17  appraisal district in which is located an applicable inventory>.
   9-18              (3) <(2)>  "Collector" has the meaning given it in
   9-19  Section 23.12A of this code <means the county tax
   9-20  assessor-collector in the county in which is located a special
   9-21  inventory>.
   9-22              <(3)  "County aggregate tax rate" means the combined
   9-23  tax rate of all relevant taxing units in a county.>
   9-24              (4)  "Comptroller" has the meaning given it in Section
   9-25  23.12A of this code.
   10-1              (5)  "Dealer's motor vehicle inventory" has the meaning
   10-2  given it in Section 23.12A of this code.
   10-3              (6)  "Declaration" has the meaning given it in Section
   10-4  23.12A of this code.
   10-5              (7) <(4)>  "Owner" has the meaning given it in Section
   10-6  23.12A of this code.
   10-7              <(7)  "Special inventory" has the meaning given it in
   10-8  Section 23.12A of this code.>
   10-9              (8) <(5)>  "Relevant taxing unit" means a taxing unit,
  10-10  including the county, authorized by law to levy property taxes
  10-11  against a dealer's motor vehicle <special> inventory.
  10-12              (9) <(6)>  "Sales price" has the meaning given it in
  10-13  Section 23.12A of this code.
  10-14              (10) <(8)>)  "Statement" <Special inventory tax
  10-15  statement> means the dealer's motor vehicle inventory tax statement
  10-16  filed on a form promulgated by the comptroller <of public accounts>
  10-17  as required by this section.
  10-18              (11)  "Subsequent sale" has the meaning given it in
  10-19  Section 23.12A of this code.
  10-20              (12) <(9)>  "Total annual sales" has the meaning given
  10-21  it in Section 23.12A of this code.
  10-22              (13) <(10)>  "Unit property tax value factor" means a
  10-23  number equal to <is> one-twelfth of the prior year <most recent
  10-24  county> aggregate tax rate <for the county in which a special
  10-25  inventory> at the location where a dealer's motor vehicle inventory
   11-1  is located on January 1 of the current year <is located>.
   11-2        (b)  Except for a vehicle sold to a dealer, a vehicle
   11-3  included in a fleet transaction, or a vehicle that is the subject
   11-4  of a subsequent sale, an owner or a person who has agreed by
   11-5  contract to pay the owner's current year property taxes levied
   11-6  against the owner's motor vehicle inventory, <An owner> shall
   11-7  assign a unit property tax value to each motor vehicle <unit> sold
   11-8  from a dealer's motor vehicle <special> inventory.  The unit
   11-9  property tax value of each motor vehicle <unit> is determined by
  11-10  multiplying the sales price of the motor vehicle <unit> by the unit
  11-11  property tax value factor.  On or before the 10th day of each month
  11-12  the owner shall, together with the statement filed by the owner as
  11-13  provided by this section, deposit with the collector a sum equal to
  11-14  the total of unit property tax value assigned to all motor vehicles
  11-15  <units> sold from the dealer's motor vehicle <special> inventory in
  11-16  the prior month to which a unit property tax value was assigned.
  11-17  The money shall be deposited by the collector in or otherwise
  11-18  credited by the collector to the owner's escrow account for
  11-19  prepayment of property taxes as provided by this section.  An
  11-20  escrow account required by this section is used to pay property
  11-21  taxes levied against the dealer's motor vehicle <special>
  11-22  inventory, and the owner shall fund the escrow account as provided
  11-23  by this subsection.
  11-24        (c)  The collector shall maintain the escrow account for each
  11-25  owner in the county depository.  The collector is not required to
   12-1  maintain a separate account in the depository for each escrow
   12-2  account created as provided by this section but shall maintain
   12-3  separate records for each owner.  The collector shall retain any
   12-4  interest generated by the escrow account to defray the cost of
   12-5  administration of the prepayment procedure established by this
   12-6  section.  Interest generated by an escrow account created as
   12-7  provided by this section is the sole property of the collector, and
   12-8  that interest may be used by no entity other than the collector.
   12-9  Interest generated by an escrow account may not be used to reduce
  12-10  or otherwise affect the annual appropriation to the collector that
  12-11  would otherwise be made.
  12-12        (d)  The owner may not withdraw funds <the money> in an <the>
  12-13  escrow account created pursuant to this section.
  12-14        (e)  The comptroller <of public accounts> shall promulgate a
  12-15  form entitled a Dealer's Motor Vehicle <Special> Inventory Tax
  12-16  Statement.  A dealer <The owner of a special inventory> shall
  12-17  complete the form with respect to each motor vehicle <unit> sold.
  12-18  <from the owner's applicable inventory and> A dealer may use no
  12-19  other form for that purpose.  The statement <form> may include the
  12-20  information the comptroller deems appropriate but shall include at
  12-21  least the following:
  12-22              (1)  a description of the motor vehicle <unit> sold;
  12-23              (2)  <a statement as to whether or not the unit was
  12-24  sold from the owner's special inventory;>
  12-25              <(3)>  the sales price of the motor vehicle <unit>;
   13-1              (3) <(4)>  the unit property tax value of the motor
   13-2  vehicle <unit> if any <the unit was sold from the owner's special
   13-3  inventory>; and
   13-4              (4) <(5)>  the reason no unit property tax value is
   13-5  assigned <the unit was excluded from the owner's special
   13-6  inventory,> if no unit property tax value is assigned.
   13-7        (f)  On or before the 10th day of each month <the owner of> a
   13-8  dealer <special inventory> shall file with the collector <chief
   13-9  appraiser> the <special inventory tax> statement covering sales of
  13-10  all motor vehicles sold by the dealer <for each unit sold by the
  13-11  owner from the owner's applicable inventory> in the prior month.  A
  13-12  dealer <An owner> shall file a copy of the statement with the chief
  13-13  appraiser, retain documentation relating to the disposition of each
  13-14  motor vehicle <unit> sold <from an applicable inventory, including
  13-15  documentation relating to the exclusion of a unit from special
  13-16  inventory> and shall make that documentation available to the
  13-17  collector and chief appraiser upon request.
  13-18        (g)  Except as provided by this subsection, the requirements
  13-19  of Subsection (f) of this section apply to all dealers, without
  13-20  regard to whether or not the dealer owes vehicle inventory tax for
  13-21  the current year.  A dealer who owes no vehicle inventory tax for
  13-22  the current year because he was not in business on January 1:
  13-23              (1)  shall file the statement required by this section
  13-24  showing the information required by this section for each month
  13-25  during which the dealer is in business; and
   14-1              (2)  may neither assign a unit property tax value to a
   14-2  motor vehicle sold by the dealer nor remit money with the statement
   14-3  unless pursuant to the terms of a contract as provided by
   14-4  Subsection (l) of this section.
   14-5        (h)  A collector may establish a procedure, voluntary or
   14-6  mandatory, by which the unit property tax value of a vehicle is
   14-7  paid and deposited into an owner's escrow account at the time of
   14-8  processing the transfer of title to the motor vehicle.
   14-9        (i) <(g)>  A relevant taxing unit shall, on its tax bill
  14-10  prepared for the owner of a dealer's motor vehicle <special>
  14-11  inventory, separately itemize the taxes levied against the dealer's
  14-12  motor vehicle <special> inventory.  When the tax bill is prepared
  14-13  by a relevant taxing unit for a dealer's motor vehicle <special>
  14-14  inventory, the assessor for the taxing unit, or an entity, if any,
  14-15  other than the collector, that collects taxes on behalf of the
  14-16  taxing unit, shall provide the collector a true and correct copy of
  14-17  the tax bill sent to the owner, including taxes levied against <the
  14-18  owner's> dealer's motor vehicle <special> inventory.  The collector
  14-19  shall apply the money in the owner's escrow account to the taxes
  14-20  imposed and deliver a tax receipt to the owner.  The collector
  14-21  shall apply the amount to each relevant taxing unit in proportion
  14-22  to the amount of taxes levied, and the assessor of each relevant
  14-23  taxing unit shall apply the funds received from the collector to
  14-24  the taxes owed by the owner.
  14-25        (j) <(h)>  If the amount in the escrow account is not
   15-1  sufficient to pay the taxes in full, the collector shall apply the
   15-2  money to the taxes and deliver to the owner a tax receipt for the
   15-3  partial payment and a tax bill for the unpaid amount together with
   15-4  a statement that the owner must remit to the collector the balance
   15-5  of the total tax due.
   15-6        (k) <(i)>  The collector shall remit to each relevant taxing
   15-7  unit the total amount collected by the collector in deficiency
   15-8  payments.  The assessor of each relevant taxing unit shall apply
   15-9  those funds to the taxes owed by the owner.  Taxes that are due but
  15-10  not received by the collector <and remitted by the collector to
  15-11  each relevant taxing unit> on or before January 31 are delinquent.
  15-12  Not later than February 15 the collector shall distribute to
  15-13  relevant taxing units in the manner set forth in this section all
  15-14  funds collected pursuant to the authority of this section and held
  15-15  in escrow by the collector as provided by this section.
  15-16        <(j))  The collector shall annually distribute among the
  15-17  relevant taxing units, in proportion to the taxes levied by each
  15-18  against the special inventory, funds, if any, that remain in the
  15-19  escrow account after the payment of all property taxes due.>
  15-20        <(k)  Not later than February 1 of each year or, in the case
  15-21  of an owner who was not in business on January 1, not later than 30
  15-22  days after commencement of business, each owner shall file a
  15-23  special inventory declaration with the chief appraiser and file a
  15-24  copy with the county tax assessor-collector.  The declaration is
  15-25  sufficient to comply with this subsection if it sets forth the
   16-1  following information:>
   16-2              <(1)  the name and business address of each location at
   16-3  which the owner conducts business;>
   16-4              <(2)  each of the owner's general distinguishing
   16-5  numbers, if the owner has a general distinguishing number issued by
   16-6  the Texas Department of Transportation;>
   16-7              <(3)  a statement that the owner is the owner of a
   16-8  special inventory; and>
   16-9              <(4)  the market value of the inventory for the current
  16-10  tax year as computed under Section 23.12A(b) of this code.>
  16-11        (l)  A person who acquires the business or assets of an owner
  16-12  may, by contract, agree to pay the current year vehicle inventory
  16-13  taxes owed by the owner.  The owner who owes the current year tax
  16-14  and the person who acquires the business or assets of the owner
  16-15  shall jointly notify the chief appraiser and the collector of the
  16-16  terms of the agreement and of the fact that the other person has
  16-17  agreed to pay the current year vehicle inventory taxes owed by the
  16-18  dealer.  The chief appraiser and the collector shall adjust their
  16-19  records accordingly.  Notwithstanding the terms of Section 23.12A
  16-20  of this code, a person who agrees to pay current year vehicle
  16-21  inventory taxes as provided by this subsection is not required to
  16-22  file a declaration until the year following the acquisition.  This
  16-23  subsection does not relieve the selling owner of the tax liability.
  16-24  <An owner who fails to file a special inventory declaration
  16-25  required by this section commits an offense.  An offense under this
   17-1  subsection is a misdemeanor punishable by a fine not to exceed
   17-2  $500. A fine collected under this subsection may be used only by
   17-3  the collector to defray the cost of enforcing this section.  Each
   17-4  day during which an owner fails to comply with the terms of this
   17-5  subsection is a separate violation.>
   17-6        (m)  A dealer <An owner> who fails to file a <special
   17-7  inventory tax> statement as required by this section commits an
   17-8  offense.  An offense under this subsection is a misdemeanor
   17-9  punishable by a fine not to exceed $100. <A fine collected under
  17-10  this subsection may be used only by the collector to defray the
  17-11  cost of enforcing this section.>  Each day during which a dealer
  17-12  <an owner> fails to comply with the terms of this subsection is a
  17-13  separate violation.
  17-14        (n)  In addition to other penalties provided by law, a dealer
  17-15  who fails to file a statement as required by this section shall
  17-16  forfeit a penalty.  A tax lien attaches to the owner's business
  17-17  personal property to secure payment of the penalty.  The
  17-18  appropriate district attorney, criminal district attorney, or
  17-19  county attorney shall collect the penalty established by this
  17-20  section in the name of the chief appraiser or collector.  Venue of
  17-21  an action brought under this subsection is in the county in which
  17-22  the violation occurred or in the county in which the owner
  17-23  maintains his principal place of business or residence.  A penalty
  17-24  forfeited under this subsection is $500 for each month or part of a
  17-25  month in which a statement is not filed after it is due.
   18-1        (o) <(n)>  An owner who fails to remit taxes <the amounts>
   18-2  due as required by this section <Subsection (b) of this section>
   18-3  shall pay a penalty of five percent of the amount due.   If the
   18-4  amount is not paid within 10 days after the due date, the owner
   18-5  shall pay an additional penalty of five percent of the amount due.
   18-6  The collector, the collector's designated agent, or the county or
   18-7  district attorney shall enforce the terms of this subsection<, and
   18-8  a penalty collected under this subsection may be used only by the
   18-9  collector to defray the cost of enforcing this section>.  A penalty
  18-10  under this subsection is in addition to any other penalty provided
  18-11  by law <that may be due> if the owner's taxes are delinquent <not
  18-12  paid in full by January 31>.
  18-13        (p)  Fines and penalties collected pursuant to the authority
  18-14  of this section shall be deposited in the county depository to the
  18-15  credit of the general fund.
  18-16        SECTION 4.  Chapter 23, Subchapter B, Property Tax Code, is
  18-17  amended by adding Section 23.12C to read as follows:
  18-18        Sec. 23.12C.  DECLARATIONS AND STATEMENTS CONFIDENTIAL.  (a)
  18-19  In this section:
  18-20              (1)  "Collector" has the meaning given it in Section
  18-21  23.12B of this code.
  18-22              (2)  "Comptroller" means the Comptroller of Public
  18-23  Accounts of Texas.
  18-24              (3)  "Chief appraiser" has the meaning given it in
  18-25  Section 23.12B of this code.
   19-1              (4)  "Dealer" has the meaning given it in Section
   19-2  23.12A of this code.
   19-3              (5)  "Declaration" has the meaning given it in Section
   19-4  23.12B of this code.
   19-5              (6)  "Owner" has the meaning given it in Section 23.12A
   19-6  of this code.
   19-7              (7)  "Statement" has the meaning given it in Section
   19-8  12.12B of this code.
   19-9        (b)  Except as provided by this section, a declaration or
  19-10  statement filed with a chief appraiser or collector as required by
  19-11  Section 23.12A or Section 23.12B of this code is confidential and
  19-12  not open to public inspection.  A declaration or statement and the
  19-13  information contained in either may not be disclosed to anyone
  19-14  except an employee of the appraisal office who appraises the
  19-15  property or to an employee of the county tax assessor-collector
  19-16  involved in the maintenance of the owner's escrow account.
  19-17        (c)  Information made confidential by this section may be
  19-18  disclosed:
  19-19              (1)  in a judicial or administrative proceeding
  19-20  pursuant to a lawful subpoena;
  19-21              (2)  to the person who filed the declaration or
  19-22  statement or to that person's representative authorized by the
  19-23  person in writing to receive the information;
  19-24              (3)  to the comptroller or an employee of the
  19-25  comptroller authorized by the comptroller to receive the
   20-1  information;
   20-2              (4)  to a collector or chief appraiser;
   20-3              (5)  to a district attorney, criminal district attorney
   20-4  or county attorney involved in the enforcement of a penalty imposed
   20-5  pursuant to Section 23.12 A or Section 23.12B of this code;
   20-6              (6)  for statistical purposes if in a form that does
   20-7  not identify specific property or a specific property owner; or
   20-8              (7)  if and to the extent that the information is
   20-9  required for inclusion in a public document or record that the
  20-10  appraisal or collection office is required by law to prepare or
  20-11  maintain.
  20-12        (d)  A person who knowingly permits inspection of a
  20-13  declaration or statement by a person not authorized to inspect the
  20-14  declaration or statement  or who discloses confidential information
  20-15  contained in the declaration or statement to a person not
  20-16  authorized to receive the information commits an offense.  An
  20-17  offense under this subsection is a Class B misdemeanor.
  20-18        SECTION 5.  This Act takes effect January 1, 1996.
  20-19        SECTION 6.  The importance of this legislation and the
  20-20  crowded condition of the calendars in both houses create an
  20-21  emergency and an imperative public necessity that the
  20-22  constitutional rule requiring bills to be read on three several
  20-23  days in each house be suspended, and this rule is hereby suspended,
  20-24  and that this Act take effect and be in force according to its
  20-25  terms, and it is so enacted.