78R8568 SLO-D

By:  Turner                                                       H.B. No. 2404



A BILL TO BE ENTITLED

AN ACT

relating to penalties to defray a taxing unit's costs of collecting 
delinquent property taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 33.07(a), Tax Code, is amended to read as 
follows:       
	(a)  A taxing unit or appraisal district may provide, in the 
manner required by law for official action by the body, that taxes 
that become delinquent on or after February 1 of a year but not 
later than May 1 of that year and that remain delinquent on July 1 of 
the year in which they become delinquent incur an additional 
penalty to defray costs of collection[, if the unit or district or 
another unit that collects taxes for the unit has contracted with an 
attorney pursuant to Section 6.30].  The unit or district may apply 
all or part of the penalty to the payment of attorney's fees if the 
unit or district has contracted with an attorney under Section 
6.30.  The amount of the penalty may not exceed 20 percent of the 
amount of delinquent tax, including unpaid penalties and interest, 
when the penalty is incurred [the amount of the compensation 
specified in the contract with the attorney to be paid in connection 
with the collection of the delinquent taxes].
	SECTION 2.  This Act takes effect September 1, 2003.