SWB H.B. 3306 75(R)BILL ANALYSIS WAYS & MEANS H.B. 3306 By: Heflin 4-28-97 Committee Report (Unamended) BACKGROUND In the property appraisal system, the Tax Code provides various sections of governance under which taxpayers, appraisal districts, and taxing units interact for the proper procedure of assessing liability, payment of taxes, and provision of penalties for non-payment. This Code is subject to constant review for possible improvements that address both efficiency and fairness within the property tax system. PURPOSE The purpose of HB 3306, as introduced, is to enhance the effectiveness of the property tax system by making amendments to Chapter 31 (Collections), Chapter 32 (Liens & Personal Liability), Chapter 33 (Delinquency), Chapter 34, (Tax Sales and Redemption), and Chapter 41 (Local Review) of the Tax Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends subsection (a) of Section 31.01, Tax Code (Tax Bills), to allow property tax bills to be mailed on postcards. SECTION 2.Adds subsections (d) - (g) to Section 32.07, Tax Code, (Personal Liability for Tax), to hold a person who collects tax payments from co-owners liable for the payment of those taxes. The liability of that person to be responsible for payment of taxes from co-owners who have paid does not dissolve with the dissolution of an entity that holds taxable property. SECTION 3.Amends subsections (a) and (c) of Section 33.01, Tax Code, (Penalties and Interest), to provide that a delinquent tax incurs penalties for the tax owed, plus interest, regardless of whether or not a judgement for the tax has been rendered. SECTION 4.Amends Article 5069-1.05, Vernon's Texas Civil Statutes (Rate of Judgements), to make interest on tax judgements not applicable under this section. SECTION 5.Amends subsection (b) of Section 33.02, Tax Code (Installment Payment on Delinquent Taxes), to provide an assessment of a penalty on installment payments of delinquent taxes. SECTION 6.Adds subsection (d) to Section 33.41, Tax Code (Suit to Collect Delinquent Tax), to allow a tax claim against an estate to be filed in a court of competent jurisdiction of the county in which the tax was imposed, rather than in the probate court in which the person's estate is pending. SECTION 7.Amends Section 33.51, Tax Code (Writ of Possession) to provide that a purchaser of tax lien property take possession of the property no sooner than 20 days after the deed is filed. SECTION 8.Amends subsections (a) and (b) of Section 33.52, Tax Code (Judgement for Current Taxes), to make current year taxes not mandatory in figuring a judgement. Adds subsection (c) to make current year taxes not figured into a judgement the responsibility of a purchaser. SECTION 9.Amends Subsection (a) of Section 34.05, Tax Code (Resale by Taxing Unit), to exempt a taxing unit from Local Government Code Sec. 272.001 (Notice of Sale or Exchange of Land by Political Subdivision). This is a codification of Attorney General's Opinion JM-1232. SECTION 10.Amends subsection (b) of Section 34.06, Tax Code (Distribution of Proceeds of Resale) to allow a taxing unit that purchases tax lien property to deduct costs associated with upkeep of the property from proceeds paid to other taxing units holding an interest in the property. SECTION 11.Amends Section 34.21, Tax Code (Right of Redemption), by adding a new subsection (b) to allow, on a redemption of property held by a taxing unit, charges to be paid by the owner for the filing fee for the taxing unit's deed and the amount expended by a taxing unit for upkeep of the property. Also adds a new subsection (c) to provide that a owner exercising his right of redemption will pay to a purchaser other than a taxing unit the amount the purchaser paid for the property, plus fees, taxes, interest, penalties, and upkeep of the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed in the first year and 50 percent if the property is redeemed in the second year of the redemption period. Amends subsection (d), formerly subsection (b), to provide that a redemption premium on property that is not a residence homestead or designated for agricultural use shall not exceed 25 percent. Adds a new subsection (i) to define upkeep of property ("costs") referred to in previous subsections. SECTION 12.Amends subsection (b) of Section 34.23, Tax Code (Distribution of Redemption Proceeds), to provide that redemption procedures on property that has been resold are the same as the section governing redemption of property held by a taxing unit. SECTION 13.Amends subsection (a) of Section 41.11, Tax Code (Notice to Property Owner of Change in Records), to give a property owner 30 days after an appraisal review board reviews appraisal records to file a notice of protest. SECTION 14. Effective date: January 1, 1998. SECTION 15.Emergency clause.