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A BILL TO BE ENTITLED
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AN ACT
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relating to escrow accounts maintained by tax collectors for the |
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payment of ad valorem taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 31.072(b), (c), (d), (f), (g), (h), and |
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(i), Tax Code, are amended to read as follows: |
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(b) A contract may establish an account to provide for the |
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payment of property taxes for one tax year or multiple tax years. |
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The [A] contract may not be made before October 1 of the year |
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preceding the first tax year for which the account is established. |
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The collector may agree to establish a combined account for more |
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than one item of property having the same owner on the property |
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owner's request. If a collector collects taxes for more than one |
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taxing unit, an account must apply to taxes on the affected property |
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for each of the taxing units. |
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(c) A contract under this section, for each tax year covered |
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by the contract, must require the property owner to make monthly |
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deposits to the escrow account until the amount set for that tax |
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year in the contract under Subsection (d) [of this section] accrues |
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in the account or until the tax bill for the property is prepared |
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for that tax year, whichever occurs earlier. For a contract |
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covering multiple tax years, deposits may not be made for a tax year |
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before October 1 of the preceding tax year. |
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(d) On request by a property owner to establish an escrow |
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account under this section, the collector shall estimate the amount |
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of taxes to be imposed on the property by the affected taxing units |
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for the first tax year covered by the contract. For each subsequent |
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tax year, the collector shall estimate the amount of taxes to be |
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imposed on the property by the affected taxing units before October |
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1 of the preceding tax [in that] year. A contract to establish an |
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escrow account, for each tax year covered by the contract, must |
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provide for deposits that would provide, as of the date the |
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collector estimates the tax bill for the property will be prepared, |
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an account balance [a total deposit] that is not less than the |
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amount of taxes estimated by the collector for that tax year or the |
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amount of taxes imposed on the property by the affected taxing units |
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in the preceding tax year, whichever is less. The collector may |
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agree to a deposit of a greater amount on the property owner's |
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request. |
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(f) The property owner may withdraw from the collector the |
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money the owner deposited in an escrow account for a tax year only |
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if the withdrawal is made before the date the tax bill is prepared |
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for that tax year or October 1 of that [the] tax year, whichever |
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occurs earlier. On and after that date and until the taxes are paid |
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for that tax year, the collector must agree to a withdrawal by the |
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taxpayer. The property owner may not withdraw less than the total |
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amount deposited in the escrow account. |
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(g) For each tax year, when [When] the tax bill is prepared |
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for property for which an escrow account is established, the |
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collector shall apply the money in the account to the taxes imposed |
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and deliver a tax receipt to the taxpayer together with a refund of |
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any amount in the account in excess of the amount of taxes paid for |
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that tax year. If the amount in the escrow account is not sufficient |
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to pay the taxes for that tax year in full, the collector shall |
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apply the money to the taxes and deliver to the taxpayer a tax |
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receipt for the partial payment and a tax bill for the unpaid |
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amount. If the escrow account applies to more than one taxing unit |
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or to more than one item of property, the collector shall apply the |
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amount to each taxing unit or item of property in proportion to the |
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amount of taxes imposed unless the contract provides otherwise. |
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(h) Notwithstanding Subsection (a), if the property owner |
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requesting a collector to establish an escrow account under this |
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section is a disabled veteran as defined by Section 11.22 or a |
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recipient of the Purple Heart, the Congressional Medal of Honor, |
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the Bronze Star Medal, the Silver Star, the Legion of Merit, or a |
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service cross awarded by a branch of the United States armed forces |
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and the escrow account is to be used solely to provide for the |
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payment of property taxes collected by the collector on the |
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property owner's residence homestead for a single tax year, the |
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collector shall enter into a contract with the property owner under |
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this section for that tax year. |
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(i) Notwithstanding Subsection (a), if the property owner |
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requesting a collector to establish an escrow account under this |
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section is the owner of a manufactured home and the escrow account |
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is to be used solely to provide for the payment of property taxes |
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collected by the collector on the property owner's manufactured |
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home for a single tax year, the collector shall enter into a |
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contract with the property owner under this section for that tax |
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year. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |