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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 32.06,
Tax Code, is amended by amending Subsection (a-1) and adding Subsection
(a-5) to read as follows:
(a-1) A person may authorize
another person to pay the taxes imposed by a taxing unit on the person's
real property by filing with the collector for the unit:
(1) a sworn document
stating:
(A) the authorization;
(B) the name and street
address of the transferee authorized to pay the taxes of the property
owner;
(C) a description of the
property by street address, if applicable, and legal description; [and]
(D) notice has been given to
the property owner that if the property owner is age 65 or disabled, the
property owner may be eligible for a tax deferral under Section 33.06; and
(E) that the transferee
delivered a notice to the property owner in accordance with Subsection
(a-5); and
(2) the information required
by Section 351.054, Finance Code.
(a-5) Not later than the
12th day before the date the property owner files with the collector for
the unit the sworn document and the information under Subsection (a-1), the
transferee must deliver a notice to the property owner containing the
following statement in capital letters: "IF THE PROPERTY TAXES ON YOUR
RESIDENCE HOMESTEAD ARE DELINQUENT, YOU SHOULD CONTACT THE (NAME OF TAXING
UNIT) REGARDING A RIGHT YOU MAY HAVE TO ENTER INTO AN INSTALLMENT AGREEMENT
DIRECTLY WITH THE (NAME OF TAXING UNIT) FOR THE PAYMENT OF THESE
TAXES." The transferee shall retain a copy of the notice.
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No
equivalent provision.
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No
equivalent provision.
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SECTION 1. Section 31.031,
Tax Code, is amended to read as follows:
Sec. 31.031. INSTALLMENT
PAYMENTS OF CERTAIN HOMESTEAD TAXES. (a) This section applies only to:
(1) an individual who is:
(A) disabled or at least 65
years of age; and
(B) qualified for an
exemption under Section 11.13(c); or
(2) an individual who is[:
[(A) the unmarried
surviving spouse of a disabled veteran; and
[(B)] qualified for
an exemption under Section 11.22.
(a-1) An [If
before the delinquency date an] individual to whom this section applies
may pay [pays at least one-fourth of] a taxing unit's taxes
imposed on property that the person owns and occupies as a residence
homestead in four equal installments without penalty or interest if the
first installment is paid before the delinquency date and is[,]
accompanied by notice to the taxing unit that the person will pay the
remaining taxes in three equal installments[, the person may pay
the remaining taxes without penalty or interest in three equal installments].
The second [first] installment must be paid before April 1,
the third [second] installment before June 1, and the fourth
[third] installment before August 1.
(a-2) Notwithstanding the
deadline prescribed by Subsection (a-1) for payment of the first
installment, an individual to whom this section applies may pay the taxes
in four equal installments as provided by Subsection (a-1) if the first
installment is paid and the required notice is provided before March 1.
(b) If the individual fails
to make a payment, including the first payment, before the
applicable date provided by Subsection (a-1) [(a)], the
unpaid amount is delinquent and incurs a penalty of six percent and
interest as provided by Section 33.01(c). The penalty provided by Section
33.01(a) does not apply to the unpaid amount.
(c) An individual may pay
more than the amount due for each installment and the amount in excess of
the amount due shall be credited to the next installment. An individual
may not pay less than the total amount due for each installment unless the
collector provides for the acceptance of partial payments under this
section. If the collector accepts a partial payment, penalties and
interest are incurred only by the amount of each installment that remains
unpaid on the applicable date provided by Subsection (a-1) [(a)].
(d) If the delinquency date
for taxes to which this section applies is postponed to May 1 or a later
date, the collector shall extend each installment deadline provided by
Subsection (a-1) [(a)] by the number of months that the
delinquency date was postponed.
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SECTION 2. Section 33.02,
Tax Code, is amended by amending Subsections (a) and (b) and adding
Subsection (b-1) to read as follows:
(a) The collector for a
taxing unit may enter into an agreement with a person delinquent in
the payment of the tax for payment of the tax, penalties, and interest in
installments. The collector for a taxing unit shall, on request by a
person delinquent in the payment of the tax on a residence homestead, enter
into an agreement with the person for payment of the tax, penalties, and
interest in installments if the person has not entered into an installment
agreement with the collector for the taxing unit under this section in the
preceding 24 months. An installment [The] agreement under
this section:
(1) must be in
writing;
(2) must provide for
payments to be made in equal monthly installments;
(3) must extend for a
period of at least 12 months; and
(4) may not extend
for a period of more than 36 months.
(b) Except as provided by
Subsection (b-1), interest [Interest] and a penalty accrue as
provided by Sections 33.01(a) and (c) [Subsections (a) and (c) of
Section 33.01] on the unpaid balance during the period of the
agreement.
(b-1) A penalty does not
accrue as provided by Section 33.01(a) on the unpaid balance during the
period of the agreement if the property that is the subject of the
agreement is a residence homestead.
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SECTION 2. Section 33.02,
Tax Code, is amended by amending Subsections (a) and (b) and adding
Subsection (b-1) to read as follows:
(a) The collector for a
taxing unit may enter into an agreement with a person delinquent in
the payment of the tax for payment of the tax, penalties, and interest in
installments. The collector for a taxing unit shall, on request by a
person delinquent in the payment of the tax on a residence homestead, enter
into an agreement with the person for payment of the tax, penalties, and
interest in installments if the person has not entered into an installment
agreement with the collector for the taxing unit under this section in the
preceding 24 months. An installment [The] agreement under this
section:
(1) must be in
writing;
(2) must provide for
payments to be made in equal monthly installments;
(3) must extend for a
period of at least 12 months; and
(4) may not extend
for a period of more than 36 months.
(b) Except as provided by
Subsection (b-1), interest [Interest] and a penalty accrue as
provided by Sections 33.01(a) and (c) [Subsections (a) and (c) of
Section 33.01] on the unpaid balance during the period of the
agreement.
(b-1) Except as otherwise provided by this subsection,
a penalty does not accrue as provided by Section 33.01(a) on the unpaid
balance during the period of the agreement if the property that is the
subject of the agreement is a residence homestead. If the property owner fails to make a payment as required by the agreement,
a penalty accrues as provided by Section 33.01(a) on the unpaid balance as
if the owner had not entered into the agreement.
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SECTION 3. Section 33.04,
Tax Code, is amended to read as follows:
Sec. 33.04. NOTICE OF
DELINQUENCY. (a) At least once each year the collector for a taxing
unit shall deliver a notice of delinquency to each person whose name
appears on the current delinquent tax roll. However, the notice need not
be delivered if:
(1) a bill for the tax was
not mailed under Section 31.01(f); or
(2) the collector does not
know and by exercising reasonable diligence cannot determine the delinquent
taxpayer's name and address.
(b) A notice of
delinquency must contain the following statement in capital letters:
"IF THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE
HOMESTEAD, YOU SHOULD CONTACT THE (NAME OF TAXING UNIT) REGARDING A RIGHT
YOU MAY HAVE TO ENTER INTO AN INSTALLMENT AGREEMENT DIRECTLY WITH THE (NAME
OF TAXING UNIT) FOR THE PAYMENT OF THESE TAXES."
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SECTION 3. Section 33.04,
Tax Code, is amended to read as follows:
Sec. 33.04. NOTICE OF
DELINQUENCY. (a) At least once each year the collector for a taxing
unit shall deliver a notice of delinquency to each person whose name
appears on the current delinquent tax roll. However, the notice need not
be delivered if:
(1) a bill for the tax was
not mailed under Section 31.01(f); or
(2) the collector does not
know and by exercising reasonable diligence cannot determine the delinquent
taxpayer's name and address.
(b) A notice of
delinquency must contain the following statement in capital letters:
"IF THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE
HOMESTEAD, YOU SHOULD CONTACT THE (NAME OF TAXING UNIT) REGARDING A RIGHT
YOU MAY HAVE TO ENTER INTO AN INSTALLMENT AGREEMENT DIRECTLY WITH THE (NAME
OF TAXING UNIT) FOR THE PAYMENT OF THESE TAXES."
(c) The collector for a taxing unit must deliver a notice of
delinquency to a person who is in breach of an installment agreement under
Section 33.02 and to any other owner of an interest in the property subject
to the agreement whose name appears on the delinquent tax roll before the
collector may seize and sell the property or file a suit to collect a
delinquent tax subject to the agreement.
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SECTION 4. Chapter 51,
Property Code, is amended by adding Section 51.0011 to read as follows:
Sec. 51.0011. DEFAULT
ARISING FROM DELINQUENT AD VALOREM TAXES: INSTALLMENT AGREEMENTS.
Notwithstanding any
agreement to the contrary, a debtor is not in default under a deed of trust
or other contract lien on real property used as the debtor's residence for
the delinquent payment of ad valorem taxes if:
(1) the debtor is in substantial compliance with an installment
agreement with the taxing unit under Section 33.02, Tax Code, for the
payment of the taxes; and
(2) the debtor has given notice of the installment agreement to the
mortgage servicer.
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SECTION 4. Chapter 51,
Property Code, is amended by adding Section 51.0011 to read as follows:
Sec. 51.0011. DEFAULT
ARISING FROM DELINQUENT AD VALOREM TAXES: INSTALLMENT AGREEMENTS. (a)
Notwithstanding any agreement to the contrary, a debtor is not in default
under a deed of trust or other contract lien on real property used as the
debtor's residence for the delinquent payment of ad valorem taxes if:
(1) the debtor gave
notice to the mortgage servicer of the intent
to enter into an installment agreement with the taxing unit under Section
33.02, Tax Code, for the payment of the taxes at least 10 days before the
date the debtor entered into the agreement; and
(2) the property is protected from seizure and sale and a suit may
not be filed to collect a delinquent tax on the property as provided by
Section 33.02(d), Tax Code.
(b) A mortgage servicer who receives a notice described by
Subsection (a)(1) may pay the taxes subject to the installment agreement at
any time.
(c) A mortgage servicer who receives a notice described by
Subsection (a)(1) and gives the debtor notice that the mortgage servicer
intends to accelerate the note securing the deed of trust or other contract
lien as a result of the delinquency of the taxes that are subject to the
installment agreement must rescind the notice if the debtor enters into the
agreement not later than the 30th day after the date the debtor delivers
the notice.
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SECTION 5. (a) The change in law made by this Act to Section
32.06, Tax Code, applies only to an ad valorem tax lien transferred on or
after the effective date of this Act. An ad valorem tax lien transferred
before the effective date of this Act is governed by the law in effect on
the date the tax lien was transferred, and the former law is continued in
effect for that purpose.
(b) The change in law made
by this Act to Section 33.02, Tax Code, applies only to an installment
agreement for the payment of delinquent ad valorem taxes entered into on or
after the effective date of this Act. An installment agreement for the
payment of delinquent ad valorem taxes entered into before the effective
date of this Act is governed by the law in effect on the date the agreement
was entered into, and the former law is continued in effect for that
purpose.
(c) The change in law made
by this Act to Section 33.04, Tax Code, applies only to a notice of
delinquency delivered on or after the effective date of this Act. A notice
of delinquency delivered before the effective date of this Act is governed
by the law in effect on the date the notice was delivered, and the former
law is continued in effect for that purpose.
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SECTION 5.
(a)
The change in law made by this Act to Section 31.031, Tax Code, applies
only to ad valorem taxes imposed for a tax year beginning on or after the
effective date of this Act.
(b) The change in law made
by this Act to Section 33.02, Tax Code, applies only to an installment agreement
for the payment of delinquent ad valorem taxes entered into on or after the
effective date of this Act. An installment agreement for the payment of
delinquent ad valorem taxes entered into before the effective date of this
Act is governed by the law in effect on the date the agreement was entered
into, and the former law is continued in effect for that purpose.
(c) The change in law made
by this Act to Section 33.04, Tax Code, applies only to a notice of
delinquency delivered on or after the effective date of this Act. A notice
of delinquency delivered before the effective date of this Act is governed
by the law in effect on the date the notice was delivered, and the former
law is continued in effect for that purpose.
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SECTION 6. This Act takes
effect September 1, 2013.
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SECTION 6. Same as introduced
version.
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