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A BILL TO BE ENTITLED
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AN ACT
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relating to the installment payment of ad valorem taxes imposed on a |
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residence homestead. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.01, Tax Code, is amended by adding |
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Subsection (e-1) to read as follows: |
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(e-1) In the case of a residence homestead, the assessor |
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shall include in a tax bill or separate statement a conspicuous |
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statement reasonably designed to notify the property owner of the |
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provisions of Section 31.072, including the entitlement of the |
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property owner to contract with the collector for any taxing unit |
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that imposes taxes on the residence homestead to establish an |
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escrow account to provide for the payment of taxes imposed by that |
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taxing unit. The statement must include the name, business |
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address, and business telephone number of the collector for each |
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taxing unit that imposes taxes on the residence homestead. |
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SECTION 2. Section 31.072, Tax Code, is amended by amending |
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Subsections (a), (e), (g), and (h) and adding Subsection (g-1) to |
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read as follows: |
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(a) Except as provided by Subsection (h), the [The] |
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collector for a taxing unit may enter a contract with a property |
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owner under which the property owner deposits money in an escrow |
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account maintained by the collector to provide for the payment of |
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property taxes collected by the collector on any property the |
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person owns. |
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(e) The county tax assessor-collector shall maintain the |
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escrow account in the county depository. Any other collector shall |
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maintain the escrow account in the depository of the taxing unit or |
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other entity that employs the collector. The collector is not |
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required to maintain a separate account in the depository for each |
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escrow account but shall maintain separate records for each escrow |
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account. A collector shall retain any interest generated by the |
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escrow account to defray the cost of administration of the |
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procedure established by this section. Interest generated by an |
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escrow account created under this section is the sole property of |
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the collector, and the interest may not be used by any entity other |
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than the collector. Interest generated by an escrow account may not |
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be used to reduce or otherwise affect the annual appropriation to |
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the collector that would otherwise be made. |
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(g) When the tax bill is prepared for property for which an |
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escrow account is established, the collector shall apply the money |
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in the account to the taxes imposed and, except as provided by |
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Subsection (g-1), deliver a tax receipt to the taxpayer together |
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with a refund of any amount in the account in excess of the amount of |
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taxes paid. If the amount in the escrow account is not sufficient |
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to pay the taxes in full, the collector shall apply the money to the |
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taxes and deliver to the taxpayer a tax receipt for the partial |
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payment and a tax bill for the unpaid amount. If the escrow account |
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applies to more than one taxing unit or to more than one item of |
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property, the collector shall apply the amount to each taxing unit |
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or item of property in proportion to the amount of taxes imposed |
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unless the contract provides otherwise. |
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(g-1) This subsection applies only to an escrow account |
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established solely to provide for the payment of taxes imposed on |
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the property owner's residence homestead. If authorized by the |
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contract to establish the escrow account, in the event that the |
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amount in the escrow account is greater than the amount of taxes |
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paid: |
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(1) the account is continued for the purpose of |
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providing for the payment of the taxes to be imposed on the property |
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owner's residence homestead in subsequent years and that are |
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collected by the collector; and |
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(2) the collector shall deliver a tax receipt to the |
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taxpayer together with a written statement that informs the |
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taxpayer of the amount remaining in the account. |
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(h) If an [Notwithstanding Subsection (a), if the property
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owner requesting a collector to establish an escrow account under
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this section is a disabled veteran as defined by Section 11.22 or a
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recipient of the Purple Heart, the Congressional Medal of Honor,
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the Bronze Star Medal, the Silver Star, the Legion of Merit, or a
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service cross awarded by a branch of the United States armed forces
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and the] escrow account is to be used solely to provide for the |
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payment of [property] taxes collected by the collector on the |
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property owner's residence homestead, the collector, on request of |
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the property owner, shall enter into a contract with the property |
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owner under this section. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |