LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 9, 2009

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1024 by Ogden (Relating to the due dates for split payment of ad valorem taxes.), As Introduced

No fiscal implication to the State is anticipated.

The bill would amend Chapter 31 of the Tax Code, regarding property tax collections.

The bill would change the date of a taxpayer's payment for the first installment to taxing entities allowing split payments of ad valorem taxes. Existing law provides for the initial payment before December 1. The bill would change the date to on or before December 31.

Currently, taxing units that collect their own taxes could provide for payment of one-half of the taxes due before December 1 and the remaining one-half would be due before July 1. Penalties and interest do not accrue. This bill would change the date of the first payment to on or before December 31.

The bill would take effect September 1, 2009.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, SJS