| TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB796 by Janek (Relating to the ability of a taxing unit to allow split payment of taxes.), As Introduced |
The bill would amend Section 31.03 of the Tax Code by repealing subsection (b). The subsection provides that if the split-payment option for paying property taxes is adopted, it applies to taxes for all taxing units for which the adopting taxing unit collects taxes.
This bill would take effect September 1, 2007.
Current law allows the governing body of a taxing unit that collects its own taxes to provide that a person who pays one-half of the unit's taxes before December 1 may pay the remaining one-half of the taxes without penalty or interest before July 1 of the following year.
Passage of this bill would allow taxing units that have their property taxes collected by another collecting unit to opt out of the split payment option, even if the collecting unit adopts the option.
Because the state is constitutionally prohibited from imposing a state property tax, there would be no direct fiscal impact on the state.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, CT
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