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.