| TO: | Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB948 by Hegar (Relating to the waiver of penalty and interest on a taxing unit's delinquent payment of its allocation of the budget of an appraisal district.), As Introduced |
The bill would amend Section 6.06 of the Tax Code relating to the waiver of penalty and interest on a taxing unit's delinquent payment of its allocation of the budget of an appraisal district.
Under the bill, the board of directors of an appraisal district could permit waiving penalty and interest on a delinquent budget payment from a taxing unit for good cause.
The behavior of appraisal district boards in regard to waiving penalty and interest on a taxing unit's delinquent budget payment cannot be predicted. As a result, the fiscal effect on local taxing units cannot be estimated. There would be no cost to the state.
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2007.
To the extent that appraisal district boards would waive penalties and interest on delinquent budget payments, local units of government would realize a reduction in revenue.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, DB, SD, SJS
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