By:  Rose, et al. (Senate Sponsor - Armbrister)                   H.B. No. 2254
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on 
Intergovernmental Relations; May 21, 2005, reported favorably by 
the following vote:  Yeas 5, Nays 0; May 21, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to reducing the penalty for a failure by a disabled or 
elderly person to make a timely installment payment of ad valorem 
taxes imposed on the person's residence homestead.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 31.031(b), Tax Code, is amended to read 
as follows:      
	(b)  If the individual fails to make a payment before the 
applicable date provided by Subsection (a), the unpaid amount is 
delinquent and incurs a penalty of six [12] percent and interest as 
provided by Section 33.01(c).  The penalty provided by Section 
33.01(a) does not apply to the unpaid amount.
	SECTION 2.  Section 31.031(b), Tax Code, as amended by this 
Act, applies only to the penalty for a failure to make a timely 
installment payment of taxes that occurs on or after the effective 
date of this Act.  The penalty for a failure to make a timely 
installment payment of taxes that occurred before the effective 
date of this Act is governed by the law in effect when the failure 
occurred, and the former law is continued in effect for that 
purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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