LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 27, 1995 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 2197 Committee on Ways & Means By: Stiles House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2197 (Relating to the payment in installments of ad valorem taxes on certain property located in a disaster area.) this office has determined the following: The bill would add a new Section 31.032 to the Tax Code allowing installment payments on the same schedule currently provided in Section 31.031, Tax Code, for property taxes on residential property located in disaster areas. The Comptroller would adopt rules to implement the new section. Section 31.031, Tax Code, provides that persons who are older than 65 years of age on January 1 of the tax year and have applied for the over-65 homestead exemption may pay their current property taxes on their homestead in four installments. The over-65 taxpayer must pay at least one-fourth of their taxes before February 1, (delinquency date). The remaining payments are due before April 1, June 1 and August 1, without penalty or interest. If the taxpayer fails to make a payment before the required date, the unpaid amount is delinquent and incurs a penalty of 12 percent and interest (at one percent for each month delinquent). No fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: Comptroller of Public Accounts LBB Staff: JK, BR, DF