HBA-RBT H.B. 3541 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3541 By: Craddick Ways & Means 4/9/1999 Introduced BACKGROUND AND PURPOSE Currently, royalty interest owners in producing mineral leases are listed separately on the tax rolls, receive their own notice of assessed valuation, have the right to appeal their valuation, and are responsible for paying their own taxes. In addition, the collector can apply for a tax warrant in any court in any county where the person liable for the tax has personal property, and a peace officer can seize as much of the person's personal property as may be reasonably necessary for the payment of all taxes, penalties, and interest. H.B. 3541 provides that a tax warrant issued against a royalty interest owner in a producing mineral property cannot be served against the operator of that property. This bill prohibits royalty payments held by the operator of a producing mineral property for monthly distribution from being surrendered by the operator to the collector. This bill provides that a tax warrant issued for an undivided interest in minerals in place can be served only on the owner of that interest. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 33.23, Property Tax Code, by amending Subsection (c), and adding Subsection (d), to provide that a tax warrant issued against a royalty interest owner in a producing mineral property cannot be served against the operator of that property. Prohibits royalty payments held by the operator of a producing mineral property for monthly distribution from being surrendered by the operator to the collector. Provides that a tax warrant issued for an undivided interest in minerals in place can be served only on the owner of that interest. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.