HBA-EDN S.B. 1736 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1736 By: Cain Ways & Means 5/4/2001 Engrossed BACKGROUND AND PURPOSE Current law requires a taxing unit to waive penalties on a delinquent tax bill that is delinquent due to a mistake by the taxing unit or appraisal district. The taxing unit is authorized but not required to waive the interest in such a situation. Senate Bill 1736 requires the taxing unit to waive the interest if an error of the taxing unit or appraisal district results in failure to pay the tax and allows for the delinquent tax to be paid over three years instead of within 21 days after notification of the delinquency. 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. ANALYSIS Senate Bill 1736 amends the Tax Code to require, rather than authorize, the governing body of a taxing unit to waive interest on a delinquent tax if an act or omission of the taxing unit or the appraisal district in which the taxing unit participates caused or resulted in the taxpayer's failure to pay the ad valorem tax before delinquency and if the tax is paid not later than the third anniversary of, rather than within 21 days after, the date the taxpayer knows or should know of the delinquency. EFFECTIVE DATE June 30, 2001.