BILL ANALYSIS

 

 

                                                                                                                                       C.S.S.B. 580

                                                                                                                                By: Van de Putte

                                                                                                                                    Ways & Means

                                                                                                        Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Under current law, a county may set up escrow accounts for the monthly payment of property taxes. As proposed, C.S.S.B. 580 requires a collector to establish an escrow account if the property owner requesting it is a disabled veteran as defined by Section 11.22 of the Tax Code or a recipient of the Purple Heart.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

C.S.S.B. 580 requires that the collector for a taxing unit establish an escrow account for a property owner who is a disabled veteran or Purple Heart recipient and that the escrow account is to be used solely to provide for the payment of property taxes collected by the collector on the property owner's residence homestead.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2005.

 

COMPARISON OF ORIGINAL TO SUBSTITUTE

 

The substitute adds language to the original bill providing that the escrow account is to be used solely to provide for the payment of property taxes collected by the collector on the property owner's residence homestead.