SRC-JXG S.B. 779 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 779
76R3211 SMH-DBy: Madla
Intergovernmental Relations
3/15/1999
As Filed


DIGEST 

Currently, Texas law does not allow the county tax assessor collector to
accept tax payments electronically. However, the State of Texas may require
businesses making large tax payments to the state to be paid
electronically. S.B. 779 would authorize the county tax assessor collector
to require banks and mortgage companies making aggregate payments in excess
of a certain amount to transfer funds electronically. 

PURPOSE

As proposed, S.B. 779 authorizes banks and mortgage companies making
aggregate payments in excess of a certain amount to transfer funds
electronically to the county tax assessor collector. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 31.01(c), Tax Code, to require the tax bill or a
separate statement accompanying the tax bill, if the taxing unit requires
payment by electronic funds transfer, to state that the tax to be paid by
that means and, if the taxing unit charges a processing fee for an
electronic funds transfer, state the amount of the fee and the manner of
payment. Makes conforming changes. 

SECTION 2. Amends Section 31.06, Tax Code, by amending Subsection (a) and
adding Subsection (e), to authorize a collector to accept a check or money
order in payment of taxes, and to accept payment by credit card or
electronic funds transfer. Authorizes a collector to require payment by
electronic funds transfer, if the taxes exceed an amount determined by the
governing body of the taxing unit. Authorizes the collector to collect a
fee for processing the payment in a reasonable amount set by the governing
body of the taxing unit, if a tax is paid by electronic funds transfer.
Provides that the fee is in addition to the amount of taxes, penalties, and
interest, and may be paid by electronic funds transfer at the same time the
taxes, penalties, and interest are paid. 

SECTION 3. Emergency clause.
           Effective date: upon passage.