By:  Montford                                         S.B. No. 1269
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the appraisal and ad valorem taxation of certain types
    1-2  of personal property.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 23.12(f), Property Tax Code, is amended
    1-5  to read as follows:
    1-6        (f)  The owner of an inventory other than a dealer's motor
    1-7  vehicle <an applicable> inventory as that term is defined in
    1-8  Section 23.12A of this code may elect to have the inventory
    1-9  appraised at its market value as of September 1 of the year
   1-10  preceding the tax year to which the appraisal applies by filing an
   1-11  application with the chief appraiser requesting that the inventory
   1-12  be appraised as of September 1.  The application must clearly
   1-13  describe the inventory to which it applies and be signed by the
   1-14  owner of the inventory.  The application applies to the appraisal
   1-15  of the inventory in each tax year that begins after the next August
   1-16  1 following the date the application is filed with the chief
   1-17  appraiser unless the owner of the inventory by written notice filed
   1-18  with the chief appraiser revokes the application or the ownership
   1-19  of the inventory changes.  A notice revoking the application is
   1-20  effective for each tax year that begins after the next September 1
   1-21  following the date the notice of revocation is filed with the chief
   1-22  appraiser.
   1-23        SECTION 2.  Section 23.12A, Property Tax Code, is amended to
    2-1  read as follows:
    2-2        Sec. 23.12A.  DEALER'S MOTOR VEHICLE <SPECIAL> INVENTORY;
    2-3  VALUE.
    2-4        (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)  "Comptroller" means the Comptroller of Public
   2-17  Accounts of Texas.
   2-18              (4) <(2)>  "Dealer" means a person who holds a dealer's
   2-19  general distinguishing number issued by the Texas Department of
   2-20  Transportation under the authority of Article 6686, Revised
   2-21  Statutes, or is authorized by law or interstate reciprocity
   2-22  agreement to purchase vehicles in Texas without paying the motor
   2-23  vehicle sales tax.  The term does not include:
   2-24                    (A)  a person who holds a manufacturer's license
   2-25  issued by the Motor Vehicle Board of the Texas Department of
    3-1  Transportation;
    3-2                    (B)  an entity that is owned or controlled by a
    3-3  person who holds a manufacturer's license issued by the Motor
    3-4  Vehicle Board of the Texas Department of Transportation; or
    3-5                    (C)  a dealer whose general distinguishing number
    3-6  issued by the Texas Department of Transportation under the
    3-7  authority of Article 6686, Revised Statutes, prohibits the dealer
    3-8  from selling a vehicle to any person except a dealer.
    3-9              (5)  "Dealer's motor vehicle inventory" means all motor
   3-10  vehicles held for sale by a dealer.
   3-11              (6) <(3)>  <"Excluded inventory" means that part of an
   3-12  applicable inventory that:>
   3-13                    <(A)  is included in a transaction consisting of
   3-14  five or more units sold to a single business entity that has a
   3-15  manufacturer's or distributor's fleet identification number
   3-16  authorizing the entity to make fleet purchases;>
   3-17                    <(B)  is included in a transaction between
   3-18  dealers; or>
   3-19                    <(C)  consists of vehicles classified as medium
   3-20  or heavy duty trucks of 16,000 pounds gross vehicular weight or
   3-21  more>
   3-22                    "Declaration" means the dealer's motor vehicle
   3-23  inventory declaration form promulgated by the comptroller as
   3-24  required by this section.
   3-25              (7)  "Fleet transaction" means the sale of five or more
    4-1  motor vehicles from a dealer's motor vehicle inventory to the same
    4-2  business entity within one calendar year.
    4-3              (8)  "Motor vehicle" means a fully self-propelled
    4-4  vehicle with at least two wheels which has as its primary purpose
    4-5  the transport of a person or persons, or property, whether or not
    4-6  intended for use on a public street, road, or highway.
    4-7              (9) <(4)>  "Owner" means a dealer who owes current year
    4-8  vehicle inventory taxes <the person responsible for the payment of
    4-9  property taxes> levied against a dealer's motor vehicle <special>
   4-10  inventory.
   4-11              (10)  "Person" means a natural person, corporation,
   4-12  partnership, or other legal entity.
   4-13              (11) <5>  "Sales price" means the total amount of money
   4-14  paid or to be paid for the purchase of a motor vehicle as set forth
   4-15  as "sales price" in the form entitled "Application for Texas
   4-16  Certificate of Title" promulgated by the Texas Department of
   4-17  Transportation.  In a transaction that does not involve the use of
   4-18  that form, the term means an amount of money that is equivalent, or
   4-19  substantially equivalent, to the amount that would appear as "sales
   4-20  price" on the Application for Texas Certificate of Title if that
   4-21  form were involved.
   4-22              <(6)  "Special inventory" means that part of an
   4-23  applicable inventory that remains after subtracting units included
   4-24  in excluded inventory.>
   4-25              (12)  "Dealer-financed sale" means the sale of a motor
    5-1  vehicle in which the seller finances the purchase of the vehicle,
    5-2  is the sole lender in the transaction, and retains exclusively the
    5-3  right to enforce the terms of the agreement evidencing the sale.
    5-4              (13)  "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              (14) <(7)>  "Total annual sales" means the total of the
    5-9  sales price from every sale of units from a dealer's motor vehicle
   5-10  <special> inventory for a 12-month period <or for that portion of a
   5-11  12-month period for which the owner of a special inventory is
   5-12  responsible for the payment of property taxes levied against the
   5-13  special inventory>.
   5-14        (b)  Except as provided by <Subsection (c)of> this section,
   5-15  for the purpose of the computation of property tax, the market
   5-16  value of a dealer's motor vehicle <special> inventory on January 1
   5-17  is the total annual sales from the dealer's motor vehicle <special>
   5-18  inventory for the 12-month period corresponding to the prior tax
   5-19  year, divided by 12.
   5-20        (c)  For the purpose of the computation of property tax, the
   5-21  market value of <a> the dealer's motor vehicle <special> inventory
   5-22  of an owner who was not a dealer on January 1 of <with respect to
   5-23  which sales were not made for the entire 12-month period
   5-24  corresponding to> the prior tax year, the chief appraiser shall
   5-25  <may> estimate the market value of the dealer's motor vehicle
    6-1  <special> inventory.  In making the estimate required <allowed> by
    6-2  this subsection the chief appraiser shall extrapolate using sales
    6-3  data, if any, generated by sales from the dealer's motor vehicle
    6-4  <special> inventory in the prior tax year.
    6-5        (d)  Except for dealer's motor vehicle inventory, personal
    6-6  property held by a dealer <Excluded inventory described in
    6-7  Subsection (a)(3)(C) of this section> is appraised as provided by
    6-8  Section 23.12(a) of this code.  In the case of a dealer whose sales
    6-9  from dealer's motor vehicle inventory are made predominately to
   6-10  dealers, the chief appraiser may appraise the dealer's motor
   6-11  vehicle inventory as provided by Section 23.12 of this code.
   6-12        (e)  In calculating the market value of a dealer's motor
   6-13  vehicle inventory, the owner shall subtract from total annual
   6-14  sales:
   6-15              (1)  sales to dealers;
   6-16              (2)  fleet transactions; and
   6-17              (3)  subsequent sales.
   6-18        (f)  Unless a chief appraiser determines otherwise as
   6-19  provided by Subsection (d) of this section, a dealer is presumed to
   6-20  be an owner of a dealer's motor vehicle inventory on January 1 if,
   6-21  in the 12-month period ending on December 31 of the immediately
   6-22  preceding year, the dealer sold a motor vehicle to a person other
   6-23  than a dealer.  The presumption created by this subsection is not
   6-24  rebutted by the fact that a dealer has no motor vehicles physically
   6-25  on hand for sale from dealer's motor vehicle inventory on January
    7-1  1.
    7-2        (g)  The comptroller shall promulgate a form entitled
    7-3  Dealer's Motor Vehicle Inventory Declaration.  Not later than
    7-4  February 1 of each year, or, in the case of a dealer who was not in
    7-5  business on January 1, not later than 30 days after commencement of
    7-6  business, each dealer shall file a declaration with the chief
    7-7  appraiser and file a copy with the collector.  The declaration is
    7-8  sufficient to comply with this subsection if it sets forth the
    7-9  following information:
   7-10              (1)  the name and business address of each location at
   7-11  which the dealer owner conducts business;
   7-12              (2)  each of the dealer's general distinguishing
   7-13  numbers issued by the Texas Department of Transportation;
   7-14              (3)  a statement that the dealer owner is the owner of
   7-15  a dealer's motor vehicle inventory; and
   7-16              (4)  the market value of the dealer's motor vehicle
   7-17  inventory for the current tax year as computed under Section
   7-18  23.12A(b) of this code.
   7-19        (h)  When requested to do so by the chief appraiser, the
   7-20  holder of a general distinguishing number issued by the Texas
   7-21  Department of Transportation shall produce for inspection by the
   7-22  chief appraiser:
   7-23              (1)  the document issued by the Texas Department of
   7-24  Transportation showing the person's general distinguishing number;
   7-25              (2)  documentation appropriate to allow the chief
    8-1  appraiser to ascertain the applicability of this section and
    8-2  Section 23.12B of this code to the person;
    8-3              (3)  documentation necessary to substantiate
    8-4  information set forth in the dealer's declaration filed by the
    8-5  person.
    8-6        (i)  If on the declaration required by this section a dealer
    8-7  reports the sale of fewer than five motor vehicles in the prior
    8-8  year the chief appraiser shall report that fact to the Texas
    8-9  Department of Transportation.
   8-10        (j)  A dealer who fails to file a declaration required by
   8-11  this section commits an offense.  An offense under this subsection
   8-12  is a misdemeanor punishable by a fine not to exceed $500.  Each day
   8-13  during which a dealer fails to comply with the terms of this
   8-14  subsection is a separate violation.
   8-15        (k)  A person who violates Subsection (h) of this section
   8-16  commits an offense.  An offense under this subsection is a
   8-17  misdemeanor punishable by a fine not to exceed $500.  Each day
   8-18  during which a person fails to comply with the terms of Subsection
   8-19  (h) of this section is a separate violation.
   8-20        (l)  In addition to other penalties provided by law, a dealer
   8-21  who fails to file a declaration required by this section shall
   8-22  forfeit a penalty.  A tax lien attaches to the dealer's business
   8-23  personal property to secure payment of the penalty.  The
   8-24  appropriate district attorney, criminal district attorney, or
   8-25  county attorney shall collect the penalty established by this
    9-1  section in the name of the chief appraiser or collector.  Venue of
    9-2  an action brought under this subsection is in the county in which
    9-3  the violation occurred or in the county in which the owner
    9-4  maintains his principal place of business or residence.  A penalty
    9-5  forfeited under this subsection is $1000 for each month or part of
    9-6  a month in which a declaration is not filed after it is due.
    9-7        SECTION 3.  Section 23.12B, Property Tax Code, is amended to
    9-8  read as follows:
    9-9        Sec. 23.12B.  Prepayment of Taxes by Certain Taxpayers
   9-10        (a)  In this section:
   9-11              (1)  "Aggregate tax rate" means the combined tax rates
   9-12  of all relevant taxing units authorized by law to levy property
   9-13  taxes against a dealer's motor vehicle inventory.
   9-14              (2) <(1)>  "Chief appraiser" has the meaning given it
   9-15  in Section 23.12A of this code <means the chief appraiser for the
   9-16  appraisal district in which is located an applicable inventory>.
   9-17              (3) <(2)>  "Collector" has the meaning given it in
   9-18  Section 23.12A of this code <means the county tax
   9-19  assessor-collector in the county in which is located a special
   9-20  inventory>.
   9-21              <(3)  "County aggregate tax rate" means the combined
   9-22  tax rate of all relevant taxing units in a county.>
   9-23              (4)  "Comptroller" has the meaning given it in Section
   9-24  23.12A of this code.
   9-25              (5)  "Dealer's motor vehicle inventory" has the meaning
   10-1  given it in Section 23.12A of this code.
   10-2              (6)  "Declaration" has the meaning given it in Section
   10-3  23.12A of this code.
   10-4              (7) <(4)>  "Owner" has the meaning given it in Section
   10-5  23.12A of this code.
   10-6              <(7)  "Special inventory" has the meaning given it in
   10-7  Section 23.12A of this code.>
   10-8              (8) <(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              (9) <(6)>  "Sales price" has the meaning given it in
  10-12  Section 23.12A of this code.
  10-13              (10) <(8)>  "Statement" <Special inventory tax
  10-14  statement> means the dealer's motor vehicle inventory tax statement
  10-15  filed on a form promulgated by the comptroller <of public accounts>
  10-16  as required by this section.
  10-17              (11)  "Subsequent sale" has the meaning given it in
  10-18  Section 23.12A of this code.
  10-19              (12) <(9)>  "Total annual sales" has the meaning given
  10-20  it in Section 23.12A of this code.
  10-21              (13) <(10)>  "Unit property tax value factor" means a
  10-22  number equal to <is> one-twelfth of the prior year <most recent
  10-23  county> aggregate tax rate <for the county in which a special
  10-24  inventory> at the location where a dealer's motor vehicle inventory
  10-25  is located on January 1 of the current year <is located>.
   11-1        (b)  Except for a vehicle sold to a dealer, a vehicle
   11-2  included in a fleet transaction, or a vehicle that is the subject
   11-3  of a subsequent sale, an owner or a person who has agreed by
   11-4  contract to pay the owner's current year property taxes levied
   11-5  against the owner's motor vehicle inventory, <An owner> shall
   11-6  assign a unit property tax value to each motor vehicle <unit> sold
   11-7  from a dealer's motor vehicle <special> inventory.  The unit
   11-8  property tax value of each motor vehicle <unit> is determined by
   11-9  multiplying the sales price of the motor vehicle <unit> by the unit
  11-10  property tax value factor.  On or before the 10th day of each month
  11-11  the owner shall, together with the statement filed by the owner as
  11-12  provided by this section, deposit with the collector a sum equal to
  11-13  the total of unit property tax value assigned to all motor vehicles
  11-14  <units> sold from the dealer's motor vehicle <special> inventory in
  11-15  the prior month to which a unit property tax value was assigned.
  11-16  The money shall be deposited by the collector in or otherwise
  11-17  credited by the collector to the owner's escrow account for
  11-18  prepayment of property taxes as provided by this section.  An
  11-19  escrow account required by this section is used to pay property
  11-20  taxes levied against the dealer's motor vehicle <special>
  11-21  inventory, and the owner shall fund the escrow account as provided
  11-22  by this subsection.
  11-23        (c)  The collector shall maintain the escrow account for each
  11-24  owner in the county depository.  The collector is not required to
  11-25  maintain a separate account in the depository for each escrow
   12-1  account created as provided by this section but shall maintain
   12-2  separate records for each owner.  The collector shall retain any
   12-3  interest generated by the escrow account to defray the cost of
   12-4  administration of the prepayment procedure established by this
   12-5  section.  Interest generated by an escrow account created as
   12-6  provided by this section is the sole property of the collector, and
   12-7  that interest may be used by no entity other than the collector.
   12-8  Interest generated by an escrow account may not be used to reduce
   12-9  or otherwise affect the annual appropriation to the collector that
  12-10  would otherwise be made.
  12-11        (d)  The owner may not withdraw funds <the money> in an <the>
  12-12  escrow account created pursuant to this section.
  12-13        (e)  The comptroller <of public accounts> shall promulgate a
  12-14  form entitled a Dealer's Motor Vehicle <Special> Inventory Tax
  12-15  Statement.  A dealer <The owner of a special inventory> shall
  12-16  complete the form with respect to each motor vehicle <unit> sold.
  12-17  <from the owner's applicable inventory and> A dealer may use no
  12-18  other form for that purpose.  The statement <form> may include the
  12-19  information the comptroller deems appropriate but shall include at
  12-20  least the following:
  12-21              (1)  a description of the motor vehicle <unit> sold;
  12-22              (2)  <a statement as to whether or not the unit was
  12-23  sold from the owner's special inventory;>
  12-24              <(3)>  the sales price of the motor vehicle <unit>;
  12-25              (3) <(4)>  the unit property tax value of the motor
   13-1  vehicle <unit> if any <the unit was sold from the owner's special
   13-2  inventory>; and
   13-3              (4) <(5)>  the reason no unit property tax value is
   13-4  assigned <the unit was excluded from the owner's special
   13-5  inventory,> if no unit property tax value is assigned.
   13-6        (f)  On or before the 10th day of each month <the owner of> a
   13-7  dealer <special inventory> shall file with the collector <chief
   13-8  appraiser> the <special inventory tax> statement covering sales of
   13-9  all motor vehicles sold by the dealer <for each unit sold by the
  13-10  owner from the owner's applicable inventory> in the prior month.  A
  13-11  dealer <An owner> shall file a copy of the statement with the chief
  13-12  appraiser, retain documentation relating to the disposition of each
  13-13  motor vehicle <unit> sold <from an applicable inventory, including
  13-14  documentation relating to the exclusion of a unit from special
  13-15  inventory> and shall make that documentation available to the
  13-16  collector and chief appraiser upon request.
  13-17        (g)  Except as provided by this subsection, the requirements
  13-18  of Subsection (f) of this section apply to all dealers, without
  13-19  regard to whether or not the dealer owes vehicle inventory tax for
  13-20  the current year.  A dealer who owes no vehicle inventory tax for
  13-21  the current year because he was not in business on January 1:
  13-22              (1)  shall file the statement required by this section
  13-23  showing the information required by this section for each month
  13-24  during which the dealer is in business; and
  13-25              (2)  may neither assign a unit property tax value to a
   14-1  motor vehicle sold by the dealer nor remit money with the statement
   14-2  unless pursuant to the terms of a contract as provided by
   14-3  Subsection (l) of this section.
   14-4        (h)  A collector may establish a procedure, voluntary or
   14-5  mandatory, by which the unit property tax value of a vehicle is
   14-6  paid and deposited into an owner's escrow account at the time of
   14-7  processing the transfer of title to the motor vehicle.
   14-8        (i) <(g)>  A relevant taxing unit shall, on its tax bill
   14-9  prepared for the owner of a dealer's motor vehicle <special>
  14-10  inventory, separately itemize the taxes levied against the dealer's
  14-11  motor vehicle <special> inventory.  When the tax bill is prepared
  14-12  by a relevant taxing unit for a dealer's motor vehicle <special>
  14-13  inventory, the assessor for the taxing unit, or an entity, if any,
  14-14  other than the collector, that collects taxes on behalf of the
  14-15  taxing unit, shall provide the collector a true and correct copy of
  14-16  the tax bill sent to the owner, including taxes levied against <the
  14-17  owner's> dealer's motor vehicle <special> inventory.  The collector
  14-18  shall apply the money in the owner's escrow account to the taxes
  14-19  imposed and deliver a tax receipt to the owner.  The collector
  14-20  shall apply the amount to each relevant taxing unit in proportion
  14-21  to the amount of taxes levied, and the assessor of each relevant
  14-22  taxing unit shall apply the funds received from the collector to
  14-23  the taxes owed by the owner.
  14-24        (j) <(h)>  If the amount in the escrow account is not
  14-25  sufficient to pay the taxes in full, the collector shall apply the
   15-1  money to the taxes and deliver to the owner a tax receipt for the
   15-2  partial payment and a tax bill for the unpaid amount together with
   15-3  a statement that the owner must remit to the collector the balance
   15-4  of the total tax due.
   15-5        (k) <(i)>  The collector shall remit to each relevant taxing
   15-6  unit the total amount collected by the collector in deficiency
   15-7  payments.  The assessor of each relevant taxing unit shall apply
   15-8  those funds to the taxes owed by the owner.  Taxes that are due but
   15-9  not received by the collector <and remitted by the collector to
  15-10  each relevant taxing unit> on or before January 31 are delinquent.
  15-11  Not later than February 15 the collector shall distribute to
  15-12  relevant taxing units in the manner set forth in this section all
  15-13  funds collected pursuant to the authority of this section and held
  15-14  in escrow by the collector as provided by this section.
  15-15        <(j))  The collector shall annually distribute among the
  15-16  relevant taxing units, in proportion to the taxes levied by each
  15-17  against the special inventory, funds, if any, that remain in the
  15-18  escrow account after the payment of all property taxes due.>
  15-19        <(k)  Not later than February 1 of each year or, in the case
  15-20  of an owner who was not in business on January 1, not later than 30
  15-21  days after commencement of business, each owner shall file a
  15-22  special inventory declaration with the chief appraiser and file a
  15-23  copy with the county tax assessor-collector.  The declaration is
  15-24  sufficient to comply with this subsection if it sets forth the
  15-25  following information:>
   16-1              <(1)  the name and business address of each location at
   16-2  which the owner conducts business;>
   16-3              <(2)  each of the owner's general distinguishing
   16-4  numbers, if the owner has a general distinguishing number issued by
   16-5  the Texas Department of Transportation;>
   16-6              <(3)  a statement that the owner is the owner of a
   16-7  special inventory; and>
   16-8              <(4)  the market value of the inventory for the current
   16-9  tax year as computed under Section 23.12A(b) of this code.>
  16-10        (l)  A person who acquires the business or assets of an owner
  16-11  may, by contract, agree to pay the current year vehicle inventory
  16-12  taxes owed by the owner.  The owner who owes the current year tax
  16-13  and the person who acquires the business or assets of the owner
  16-14  shall jointly notify the chief appraiser and the collector of the
  16-15  terms of the agreement and of the fact that the other person has
  16-16  agreed to pay the current year vehicle inventory taxes owed by the
  16-17  dealer.  The chief appraiser and the collector shall adjust their
  16-18  records accordingly.  Notwithstanding the terms of Section 23.12A
  16-19  of this code, a person who agrees to pay current year vehicle
  16-20  inventory taxes as provided by this subsection is not required to
  16-21  file a declaration until the year following the acquisition.  This
  16-22  subsection does not relieve the selling owner of the tax liability.
  16-23  <An owner who fails to file a special inventory declaration
  16-24  required by this section commits an offense.  An offense under this
  16-25  subsection is a misdemeanor punishable by a fine not to exceed
   17-1  $500. A fine collected under this subsection may be used only by
   17-2  the collector to defray the cost of enforcing this section.  Each
   17-3  day during which an owner fails to comply with the terms of this
   17-4  subsection is a separate violation.>
   17-5        (m)  A dealer <An owner> who fails to file a <special
   17-6  inventory tax> statement as required by this section commits an
   17-7  offense.  An offense under this subsection is a misdemeanor
   17-8  punishable by a fine not to exceed $100. <A fine collected under
   17-9  this subsection may be used only by the collector to defray the
  17-10  cost of enforcing this section.>  Each day during which a dealer
  17-11  <an owner> fails to comply with the terms of this subsection is a
  17-12  separate violation.
  17-13        (n)  In addition to other penalties provided by law, a dealer
  17-14  who fails to file a statement as required by this section shall
  17-15  forfeit a penalty.  A tax lien attaches to the owner's business
  17-16  personal property to secure payment of the penalty.  The
  17-17  appropriate district attorney, criminal district attorney, or
  17-18  county attorney shall collect the penalty established by this
  17-19  section in the name of the chief appraiser or collector.  Venue of
  17-20  an action brought under this subsection is in the county in which
  17-21  the violation occurred or in the county in which the owner
  17-22  maintains his principal place of business or residence.  A penalty
  17-23  forfeited under this subsection is $500 for each month or part of a
  17-24  month in which a statement is not filed after it is due.
  17-25        (o) <(n)>  An owner who fails to remit taxes <the amounts>
   18-1  due as required by this section <Subsection (b) of this section>
   18-2  shall pay a penalty of five percent of the amount due.   If the
   18-3  amount is not paid within 10 days after the due date, the owner
   18-4  shall pay an additional penalty of five percent of the amount due.
   18-5  The collector, the collector's designated agent, or the county or
   18-6  district attorney shall enforce the terms of this subsection<, and
   18-7  a penalty collected under this subsection may be used only by the
   18-8  collector to defray the cost of enforcing this section>.  A penalty
   18-9  under this subsection is in addition to any other penalty provided
  18-10  by law <that may be due> if the owner's taxes are delinquent <not
  18-11  paid in full by January 31>.
  18-12        (p)  Fines and penalties collected pursuant to the authority
  18-13  of this section shall be deposited in the county depository to the
  18-14  credit of the general fund.
  18-15        SECTION 4.  Chapter 23, Subchapter B, Property Tax Code, is
  18-16  amended by adding Section 23.12C to read as follows:
  18-17        Sec. 23.12C.  DECLARATIONS AND STATEMENTS CONFIDENTIAL.
  18-18  (a)  In this section:
  18-19              (1)  "Collector" has the meaning given it in Section
  18-20  23.12B of this code.
  18-21              (2)  "Comptroller" means the Comptroller of Public
  18-22  Accounts of Texas.
  18-23              (3)  "Chief appraiser" has the meaning given it in
  18-24  Section 23.12B of this code.
  18-25              (4)  "Dealer" has the meaning given it in Section
   19-1  23.12A of this code.
   19-2              (5)  "Declaration" has the meaning given it in Section
   19-3  23.12B of this code.
   19-4              (6)  "Owner" has the meaning given it in Section 23.12A
   19-5  of this code.
   19-6              (7)  "Statement" has the meaning given it in Section
   19-7  12.12B of this code.
   19-8        (b)  Except as provided by this section, a declaration or
   19-9  statement filed with a chief appraiser or collector as required by
  19-10  Section 23.12A or Section 23.12B of this code is confidential and
  19-11  not open to public inspection.  A declaration or statement and the
  19-12  information contained in either may not be disclosed to anyone
  19-13  except an employee of the appraisal office who appraises the
  19-14  property or to an employee of the county tax assessor-collector
  19-15  involved in the maintenance of the owner's escrow account.
  19-16        (c)  Information made confidential by this section may be
  19-17  disclosed:
  19-18              (1)  in a judicial or administrative proceeding
  19-19  pursuant to a lawful subpoena;
  19-20              (2)  to the person who filed the declaration or
  19-21  statement or to that person's representative authorized by the
  19-22  person in writing to receive the information;
  19-23              (3)  to the comptroller or an employee of the
  19-24  comptroller authorized by the comptroller to receive the
  19-25  information;
   20-1              (4)  to a collector or chief appraiser;
   20-2              (5)  to a district attorney, criminal district attorney
   20-3  or county attorney involved in the enforcement of a penalty imposed
   20-4  pursuant to Section 23.12 A or Section 23.12B of this code;
   20-5              (6)  for statistical purposes if in a form that does
   20-6  not identify specific property or a specific property owner; or
   20-7              (7)  if and to the extent that the information is
   20-8  required for inclusion in a public document or record that the
   20-9  appraisal or collection office is required by law to prepare or
  20-10  maintain.
  20-11        (d)  A person who knowingly permits inspection of a
  20-12  declaration or statement by a person not authorized to inspect the
  20-13  declaration or statement  or who discloses confidential information
  20-14  contained in the declaration or statement to a person not
  20-15  authorized to receive the information commits an offense.  An
  20-16  offense under this subsection is a Class B misdemeanor.
  20-17        SECTION 5.  This Act takes effect January 1, 1996.
  20-18        SECTION 6.  The importance of this legislation and the
  20-19  crowded condition of the calendars in both houses create an
  20-20  emergency and an imperative public necessity that the
  20-21  constitutional rule requiring bills to be read on three several
  20-22  days in each house be suspended, and this rule is hereby suspended.