LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 1, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: SB1736 by Cain (Relating to the waiver of penalties and interest if an error of a taxing unit or appraisal district results in failure to pay an ad valorem tax.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Section 33.011 of the Tax Code to require a taxing unit's governing body to waive interest (currently only penalties are waived) if an act or omission of a taxing unit or appraisal district officer, employee or agent caused or resulted in a taxpayer's failure to pay property taxes before the delinquency date and the tax was paid not later than the third anniversary (currently within 21 days) of the date the taxpayer knew or should have known of the delinquency. The bill would take effect June 30, 2001. Local Government Impact Waiving interest and allowing the taxpayer three years to pay the tax could result in revenue losses to taxing units in instances where interest would not otherwise be waived under current law. The amount of such revenue losses to units of local government would depend on the incidence of occurrence and the amount at issue. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, DB, WP, BR