79R10147 SMH-F


By:  Rodriguez                                                    H.B. No. 1148

Substitute the following for H.B. No. 1148:                                   

By:  Edwards                                                  C.S.H.B. No. 1148


A BILL TO BE ENTITLED
AN ACT
relating to the exemption of the residence homesteads of elderly persons from ad valorem taxation and the deferral or abatement of the collection of delinquent taxes on the residence homesteads of elderly and disabled persons. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 6.035(a), Tax Code, is amended to read as follows: (a) An individual is ineligible to serve on an appraisal district board of directors and is disqualified from employment as chief appraiser if the individual: (1) is related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to an individual who is engaged in the business of appraising property for compensation for use in proceedings under this title or of representing property owners for compensation in proceedings under this title in the appraisal district; or (2) owns property on which delinquent taxes have been owed to a taxing unit for more than 60 days after the date the individual knew or should have known of the delinquency unless: (A) the delinquent taxes and any penalties and interest are being paid under an installment payment agreement under Section 33.02; or (B) a suit to collect the delinquent taxes is deferred or abated under Section 33.06, 33.061, or 33.065. SECTION 2. Section 6.412(a), Tax Code, is amended to read as follows: (a) An individual is ineligible to serve on an appraisal review board if the individual: (1) is related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to an individual who is engaged in the business of appraising property for compensation for use in proceedings under this title or of representing property owners for compensation in proceedings under this title in the appraisal district for which the appraisal review board is established; or (2) owns property on which delinquent taxes have been owed to a taxing unit for more than 60 days after the date the individual knew or should have known of the delinquency unless: (A) the delinquent taxes and any penalties and interest are being paid under an installment payment agreement under Section 33.02; or (B) a suit to collect the delinquent taxes is deferred or abated under Section 33.06, 33.061, or 33.065. SECTION 3. Section 11.43, Tax Code, is amended by adding Subsections (l) and (m) to read as follows: (l) The form for an application under Section 11.13 must include a space for the applicant to state the applicant's date of birth. Failure to provide the date of birth does not affect the applicant's eligibility for an exemption under that section, other than an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older. (m) Notwithstanding Subsections (a) and (k), a person who receives an exemption under Section 11.13, other than an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older, in a tax year is entitled to receive an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older in the next tax year on the same property without applying for the exemption if the person becomes 65 years of age in that next year as shown by information in the records of the appraisal district that was provided to the appraisal district by the individual in an application for an exemption under Section 11.13 on the property or in correspondence relating to the property. This subsection does not apply if the chief appraiser determines that the individual is no longer entitled to any exemption under Section 11.13 on the property. SECTION 4. Subchapter A, Chapter 33, Tax Code, is amended by adding Section 33.045 to read as follows: Sec. 33.045. NOTICE OF PROVISIONS AUTHORIZING DEFERRAL OR ABATEMENT. (a) A tax bill mailed by an assessor or collector under Section 31.01 and any written communication delivered to a property owner by an assessor or collector for a taxing unit or an attorney or other agent of a taxing unit that specifically threatens a lawsuit to collect a delinquent tax shall contain the following explanation in capital letters: "IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE APPRAISAL DISTRICT REGARDING ANY ENTITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE PAYMENT OF THESE TAXES". (b) This section does not apply to a communication that relates to taxes that are the subject of pending litigation. SECTION 5. The heading to Section 33.06, Tax Code, is amended to read as follows: Sec. 33.06. DEFERRED COLLECTION OF TAXES ON RESIDENCE HOMESTEAD OF [ELDERLY OR] DISABLED PERSON. SECTION 6. Sections 33.06(a) and (b), Tax Code, are amended to read as follows: (a) An individual is entitled to defer collection of a tax, abate a suit to collect a delinquent tax, or abate a sale to foreclose a tax lien if [the individual]: (1) the individual [is 65 years of age or older or] is disabled as defined by Section 11.13(m); and (2) the tax was imposed against property that the individual owns and occupies as a residence homestead. (b) To obtain a deferral, an individual must file with the chief appraiser for the appraisal district in which the property is located an affidavit stating the facts required to be established by Subsection (a). The chief appraiser shall notify each taxing unit participating in the district of the filing. After an affidavit is filed under this subsection, a taxing unit may not file or threaten to file suit to collect delinquent taxes on the property or take other action against the individual to collect delinquent taxes on the property and the property may not be sold at a sale to foreclose the tax lien until the 181st day after the date the individual no longer owns and occupies the property as a residence homestead. SECTION 7. Subchapter A, Chapter 33, Tax Code, is amended by adding Section 33.061 to read as follows: Sec. 33.061. AUTOMATIC DEFERRAL OR ABATEMENT OF COLLECTION OF TAXES ON RESIDENCE HOMESTEAD OF ELDERLY PERSON. (a) This section applies only to property that an individual who is 65 years of age or older owns and occupies as a residence homestead. (b) A taxing unit may not file or threaten to file suit to collect delinquent taxes on the property or take other action against the individual to collect delinquent taxes on the property and the property may not be sold at a sale to foreclose the tax lien until the 181st day after the date the individual no longer owns and occupies the property as a residence homestead. This subsection does not prohibit a taxing unit or an attorney or other agent of a taxing unit from delivering to an individual a notice that delinquent taxes are owing on the individual's residence homestead. (c) If property is sold in violation of this section, the property owner may file a motion to set aside the sale under the same cause number and in the same court as a judgment referenced in the order of sale. The motion must be filed during the applicable redemption period as set forth in Section 34.21. This right is not transferable to a third party. (d) This section does not affect the duty of the assessor for the taxing unit to prepare and mail a bill for the taxes on the property as provided by Section 31.01. A tax lien remains on the property and interest continues to accrue during the period that collection of taxes is deferred or abated under this section. The annual interest rate during the period of deferral or abatement is eight percent instead of the rate provided by Section 33.01. Interest and penalties that accrued or that were incurred or imposed under Section 33.01 or 33.07 before the date the individual attained the age of 65 are preserved. A penalty under Section 33.01 is not incurred during a period of deferral or abatement. The additional penalty under Section 33.07 may be imposed and collected only if the taxes for which collection is deferred or abated remain delinquent on or after the 181st day after the date the period of deferral or abatement expires. A plea of limitation, laches, or want of prosecution does not apply against the taxing unit because of a deferral or abatement of collection under this section. (e) Each year the chief appraiser for each appraisal district shall publicize in a manner reasonably designed to notify all residents of the district or county of the provisions of this section. (f) For the first tax year that an individual who qualifies for a deferral or abatement under this section or a person acting on behalf of the individual fails to pay the taxes on the property before the delinquency date, the collector for the taxing unit, not later than the 15th day after the date the taxes become delinquent, shall mail the individual a notice in the following form: Dear Property Owner: The records of (name of taxing unit) indicate that the (tax year) property taxes on your home were not paid before the delinquency date. The law entitles you to an automatic deferral or abatement of those taxes. This means that the governmental entities that impose property taxes on your home may not sue you, threaten to sue you, sell your home at a tax sale, or take any other action to collect the delinquent taxes if you elect not to pay them for as long as you continue to own and occupy your home. Your unpaid taxes will accrue interest at the rate of eight percent per year, and the entire amount will become due and payable once you cease to own or occupy the home. You have the right to waive this deferral or abatement by filing a signed statement with the chief appraiser of the (name of county) appraisal district stating that you elect not to receive the deferral or abatement. Whether you choose to waive the deferral or abatement, you may pay your property taxes voluntarily in any year. (Name of taxing unit) will continue to mail you a tax bill each year so that you will know your tax liability. If your home is subject to a mortgage or deed of trust, you should consult with your mortgage lender or the beneficiary under your deed of trust before you elect to accept or waive the deferral or abatement. Failure to pay taxes timely may violate your mortgage or deed of trust. If you have any questions about this notice, please call or write us. You may also contact the state comptroller's property tax division at (current telephone number for the comptroller's property tax division). (g) A taxing unit shall include in a notice under Subsection (f) its name, address, and telephone number and any information necessary to identify the property but may not include any other information. The collector for a taxing unit who mails a notice under Subsection (f) to an individual who qualifies for a deferral or abatement under this section and whose taxes on the property for a tax year are not paid before the delinquency date may mail a notice as provided by Subsection (f) for any subsequent tax year for which the individual's taxes on the property are not paid before that date. (h) If an individual who is 65 years of age or older dies, the deferral or abatement of the collection of taxes on the property continues in effect until the 181st day after the date the surviving spouse of the individual no longer owns and occupies the property as a residence homestead if: (1) the property was the residence homestead of the deceased spouse when the deceased spouse died; (2) the surviving spouse was 55 years of age or older when the deceased spouse died; and (3) the property was the residence homestead of the surviving spouse when the deceased spouse died. (i) An individual may elect not to receive a deferral or abatement under this section. An individual who elects not to receive the deferral or abatement shall file with the chief appraiser for the appraisal district in which the property is located a written statement signed by the individual affirmatively stating that the individual elects not to receive the deferral or abatement. The election is effective on the date the chief appraiser receives the individual's written statement. The chief appraiser shall notify each taxing unit participating in the district of the individual's election. SECTION 8. Section 33.43(a), Tax Code, is amended to read as follows: (a) A petition initiating a suit to collect a delinquent property tax is sufficient if it alleges that: (1) the taxing unit is legally constituted and authorized to impose and collect ad valorem taxes on property; (2) tax in a stated amount was legally imposed on each separately described property for each year specified and on each person named if known who owned the property on January 1 of the year for which the tax was imposed; (3) the tax was imposed in the county in which the suit is filed; (4) the tax is delinquent; (5) penalties, interest, and costs authorized by law in a stated amount for each separately assessed property are due; (6) the taxing unit is entitled to recover each penalty that is incurred and all interest that accrues on delinquent taxes imposed on the property from the date of the judgment to the date of the sale under Section 34.01 or under Section 253.010, Local Government Code, as applicable, if the suit seeks to foreclose a tax lien; (7) the person sued owned the property on January 1 of the year for which the tax was imposed if the suit seeks to enforce personal liability; (8) the person sued owns the property when the suit is filed if the suit seeks to foreclose a tax lien; (9) the taxing unit asserts a lien on each separately described property to secure the payment of all taxes, penalties, interest, and costs due if the suit seeks to foreclose a tax lien; (10) all things required by law to be done have been done properly by the appropriate officials; [and] (11) the attorney signing the petition or a person acting on the attorney's behalf has reviewed the records of the taxing unit or appraisal district and that the records reviewed do not show that the property described in the petition is the residence homestead of a person who is disabled or 65 years of age or older; and (12) the attorney signing the petition is legally authorized to prosecute the suit on behalf of the taxing unit. SECTION 9. Section 403.302(d), Government Code, is amended to read as follows: (d) For the purposes of this section, "taxable value" means the market value of all taxable property less: (1) the total dollar amount of any residence homestead exemptions lawfully granted under Section 11.13(b) or (c), Tax Code, in the year that is the subject of the study for each school district; (2) one-half of the total dollar amount of any residence homestead exemptions granted under Section 11.13(n), Tax Code, in the year that is the subject of the study for each school district; (3) the total dollar amount of any exemptions granted before May 31, 1993, within a reinvestment zone under agreements authorized by Chapter 312, Tax Code; (4) subject to Subsection (e), the total dollar amount of any captured appraised value of property that: (A) is within a reinvestment zone created on or before May 31, 1999, or is proposed to be included within the boundaries of a reinvestment zone as the boundaries of the zone and the proposed portion of tax increment paid into the tax increment fund by a school district are described in a written notification provided by the municipality or the board of directors of the zone to the governing bodies of the other taxing units in the manner provided by Section 311.003(e), Tax Code, before May 31, 1999, and within the boundaries of the zone as those boundaries existed on September 1, 1999, including subsequent improvements to the property regardless of when made; (B) generates taxes paid into a tax increment fund created under Chapter 311, Tax Code, under a reinvestment zone financing plan approved under Section 311.011(d), Tax Code, on or before September 1, 1999; and (C) is eligible for tax increment financing under Chapter 311, Tax Code; (5) the total dollar amount of any exemptions granted under Section 11.251, Tax Code; (6) the difference between the comptroller's estimate of the market value and the productivity value of land that qualifies for appraisal on the basis of its productive capacity, except that the productivity value estimated by the comptroller may not exceed the fair market value of the land; (7) the portion of the appraised value of residence homesteads of individuals who receive a tax limitation under Section 11.26, Tax Code, on which school district taxes are not imposed in the year that is the subject of the study, calculated as if the residence homesteads were appraised at the full value required by law; (8) a portion of the market value of property not otherwise fully taxable by the district at market value because of: (A) action required by statute or the constitution of this state that, if the tax rate adopted by the district is applied to it, produces an amount equal to the difference between the tax that the district would have imposed on the property if the property were fully taxable at market value and the tax that the district is actually authorized to impose on the property, if this subsection does not otherwise require that portion to be deducted; or (B) action taken by the district under Subchapter B or C, Chapter 313, Tax Code; (9) the market value of all tangible personal property, other than manufactured homes, owned by a family or individual and not held or used for the production of income; (10) the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.06 or 33.061, Tax Code; (11) the portion of the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.065, Tax Code; and (12) the amount by which the market value of a residence homestead to which Section 23.23, Tax Code, applies exceeds the appraised value of that property as calculated under that section. SECTION 10. Section 11.43(m), Tax Code, as added by this Act, applies only to eligibility for an exemption from ad valorem taxation under Section 11.13(c) or (d), Tax Code, for an individual 65 years of age or older for a tax year beginning on or after January 1, 2006. SECTION 11. This Act takes effect September 1, 2005.