Amend CSHB 4 in Article 2 by adding a new section,
appropriately numbered, to read as follows and renumbering
subsequent sections accordingly:
SECTION 2._____. Title 1, Tax Code, is amended by adding
Chapter 51 to read as follows:
CHAPTER 51. SCHOOL TAX SAVINGS REBATES TO RENTERS
Sec. 51.001. DEFINITIONS. In this chapter:
(1) "Dwelling unit" means a structure or separately
secured portion of a structure designed or used for human
habitation by an individual or group of individuals constituting a
single household.
(2) "Landlord" with respect to a dwelling unit that is
held for rent or lease means the person who has the right to charge
rent to a tenant for the use and occupancy of the dwelling unit.
(3) "Rent" includes the total amount charged by a
landlord for the use and occupancy of a dwelling unit, not
including refundable property deposits.
(4) "Tenant" means a person who rents or leases an
individual dwelling unit from a landlord.
Sec. 51.002. SCHOOL TAX SAVINGS REBATE REQUIRED. (a) In
1998, 1999, and 2000, not later than February 15, a landlord shall
pay to each tenant who rents or leases a dwelling unit from the
landlord on February 1 a rebate of a portion of the rent on that
unit.
(b) If the amount of rent owed for February of the
applicable year has not been fully paid by the tenant before the
date the rebate is required to be paid by Subsection (a), the
deadline for payment of the rebate is postponed until the 10th day
after the date the February rent is fully paid.
(c) A landlord is not required to pay a rebate if the amount
of the rebate calculated under Section 51.003 is less than $5.
(d) A landlord shall include with each rebate paid under
this section a notice stating substantially as follows: "The Texas
Legislature enacted legislation in 1997 to lower school district
property taxes throughout the state. That law requires your
landlord to rebate to you a portion of the rent on your (insert
"apartment," "residence," or other appropriate term for the
dwelling unit) so that you may benefit from the tax reduction. Your
landlord's tax savings on your (insert "apartment," "residence," or
other appropriate term) for (insert reference to preceding calendar
year) is (insert amount of school tax savings apportioned to the
dwelling unit under Section 51.003(a)). The portion of that tax
savings rebated to you is (insert amount of rebate). The law
permits your landlord to retain the remainder of the tax savings to
cover other costs and expenses."
Sec. 51.003. AMOUNT OF REBATE. (a) The amount of a rebate
for a dwelling unit is determined by apportioning to each dwelling
unit contained by a property the amount of the landlord's school
tax savings for the property for the preceding tax year, calculated
as provided by Subsection (b), according to the average monthly
rent for each dwelling unit contained by the property for the year
preceding the year for which the rebate is made, and multiplying
the apportioned school tax savings by:
(1) 75 percent for 1998;
(2) 50 percent for 1999; or
(3) 25 percent for 2000.
(b) The amount of a landlord's school tax savings for a
property for a tax year is the amount by which school district ad
valorem taxes imposed on the property for the tax year is less than
the school tax base for the property for that tax year.
(c) The school tax base for a tax year on a property is
calculated by multiplying the taxable value of the property for
taxation by a school district for the tax year by the total school
district ad valorem tax rate imposed on the property for 1996.
Sec. 51.004. LANDLORD'S REPORT. (a) Not later than May 1 of
each year in which a rebate is required to be paid to the tenant of
a dwelling unit under Section 51.002 or in which a rebate would be
required to be paid to the tenant if the exemption from payment
provided by Section 51.002(c) did not apply, the landlord of the
dwelling unit on February 1 of that year shall file a report with
the chief appraiser of the appraisal district established for the
county in which the property containing the dwelling unit is
located.
(b) The report must include the following information:
(1) the address or location of the property;
(2) a list of the dwelling units contained by the
property for which a rebate is required to be paid for the year;
(3) the rent charged for February of the year for each
dwelling unit included in the report and the total amount of those
rents; and
(4) a statement of the amount of the rebate required
for the year for each dwelling unit and whether the rebate has been
paid.
(c) The comptroller shall prescribe the form of a report
filed under this section.
(d) A person who is required by this section to file a
report and who fails to file the report in the time provided by
this section is liable to the state for a civil penalty not to
exceed $500.
Sec. 51.005. EXCEPTIONS. This chapter does not apply to:
(1) a dwelling unit that did not exist as an
inhabitable dwelling unit on or before January 1, 1996; or
(2) property that did not include a dwelling unit on
January 1, 1996.
Sec. 51.006. ENFORCEMENT. (a) A landlord who does not pay a
rebate to a tenant in the time required by Section 51.002 is liable
to the tenant for the amount of the rebate plus an additional
amount equal to two times the amount of the rebate.
(b) A tenant may recover the amounts provided by Subsection
(a) by filing suit in a justice or county court. An action
brought under this section may be brought as a class action on
behalf of all tenants of a landlord to whom the rebate is not paid
in the time required.
(c) It is presumed that a landlord did not pay a rebate in
the time required by Section 51.002 if the landlord does not
present to the court as evidence of the payment:
(1) a receipt for the rebate signed by the tenant or a
member of the tenant's household evidencing that the amount of the
rebate was paid in the time required; or
(2) a canceled check or similar document evidencing
that the amount of the rebate was paid to the tenant in the time
required.
(d) A tenant who prevails in an action under this section
may recover reasonable attorney's fees.
Sec. 51.007. CIVIL PENALTY. (a) A landlord who does not pay
a rebate in the time required by Section 51.002 is liable to the
state for a civil penalty. The amount of the penalty is equal to
the amount of the rebate.
(b) The penalty is in addition to any amount that the tenant
to whom the rebate was required to have been paid may recover from
the landlord under Section 51.006.
(c) The county attorney or prosecuting attorney performing
the functions of the county attorney shall collect the penalty for
the state.
(d) A penalty collected under this section shall be sent to
the comptroller. The comptroller shall deposit the penalty to the
credit of the housing trust fund.
Sec. 51.008. EXPIRATION. This chapter expires January 1,
2005.