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A BILL TO BE ENTITLED
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AN ACT
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relating to liability for interest on ad valorem taxes on |
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improvements that escaped taxation in a previous year. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.09, Tax Code, is amended by amending |
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Subsection (d) and adding Subsections (d-1) and (d-2) to read as |
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follows: |
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(d) If a property is subject to taxation for a prior year in |
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which it escaped taxation, the assessor shall calculate the tax for |
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each year separately. In calculating the tax, the assessor [he] |
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shall use the assessment ratio and tax rate in effect in the unit |
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for the year for which back taxes are being imposed. Except as |
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provided by Subsection (d-1), [To] the amount of back taxes due |
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incurs[, he shall add] interest calculated at the rate provided by |
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[Subsection (c) of] Section 33.01(c) [33.01 of this code] from the |
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date the tax would have become delinquent had the tax been imposed |
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in the proper tax year. |
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(d-1) For purposes of this subsection, an appraisal |
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district has constructive notice of the presence of an improvement |
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if a building permit for the improvement has been issued by an |
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appropriate governmental entity. Back taxes assessed under |
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Subsection (d) on an improvement to real property do not incur |
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interest if: |
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(1) the land on which the improvement is located did |
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not escape taxation in the year in which the improvement escaped |
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taxation; |
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(2) the appraisal district had actual or constructive |
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notice of the presence of the improvement in the year in which the |
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improvement escaped taxation; and |
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(3) the property owner pays all back taxes due on the |
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improvement not later than the 120th day after the date the tax bill |
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for the back taxes on the improvement is sent. |
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(d-2) For purposes of Subsection (d-1)(3), if an appeal |
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under Chapter 41A or 42 relating to the taxes imposed on the omitted |
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improvement is pending on the date prescribed by that subdivision, |
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the property owner is considered to have paid the back taxes due by |
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that date if the property owner pays the amount of taxes required by |
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Section 41A.10 or 42.08, as applicable. |
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SECTION 2. Section 31.01, Tax Code, is amended by adding |
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Subsection (c-2) to read as follows: |
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(c-2) For a tax bill that includes back taxes on an |
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improvement that escaped taxation in a prior year, the tax bill or |
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separate statement described by Subsection (c) must state that no |
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interest is due on the back taxes if those back taxes are paid not |
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later than the 120th day after the date the tax bill is sent. |
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SECTION 3. The change in law made by this Act applies only |
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to an omitted improvement included in a tax bill that is first sent |
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to the property owner on or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2011. |