83R310 ALL-D

By: Pickett H.B. No. 215

A BILL TO BE ENTITLED

AN ACT

relating to escrow accounts maintained by tax collectors for the payment of ad valorem taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 31.072(b), (c), (d), (f), (g), (h), and (i), Tax Code, are amended to read as follows:

(b) A contract may establish an account to provide for the payment of property taxes for one tax year or multiple tax years. The [A] contract may not be made before October 1 of the year preceding the first tax year for which the account is established. The collector may agree to establish a combined account for more than one item of property having the same owner on the property owner's request. If a collector collects taxes for more than one taxing unit, an account must apply to taxes on the affected property for each of the taxing units.

(c) A contract under this section, for each tax year covered by the contract, must require the property owner to make monthly deposits to the escrow account until the amount set for that tax year in the contract under Subsection (d) [of this section] accrues in the account or until the tax bill for the property is prepared for that tax year, whichever occurs earlier. For a contract covering multiple tax years, deposits may not be made for a tax year before October 1 of the preceding tax year.

(d) On request by a property owner to establish an escrow account under this section, the collector shall estimate the amount of taxes to be imposed on the property by the affected taxing units for the first tax year covered by the contract. For each subsequent tax year, the collector shall estimate the amount of taxes to be imposed on the property by the affected taxing units before October 1 of the preceding tax [in that] year. A contract to establish an escrow account, for each tax year covered by the contract, must provide for deposits that would provide, as of the date the collector estimates the tax bill for the property will be prepared, an account balance [a total deposit] that is not less than the amount of taxes estimated by the collector for that tax year or the amount of taxes imposed on the property by the affected taxing units in the preceding tax year, whichever is less. The collector may agree to a deposit of a greater amount on the property owner's request.

(f) The property owner may withdraw from the collector the money the owner deposited in an escrow account for a tax year only if the withdrawal is made before the date the tax bill is prepared for that tax year or October 1 of that [the] tax year, whichever occurs earlier. On and after that date and until the taxes are paid for that tax year, the collector must agree to a withdrawal by the taxpayer. The property owner may not withdraw less than the total amount deposited in the escrow account.

(g) For each tax year, when [When] the tax bill is prepared for property for which an escrow account is established, the collector shall apply the money in the account to the taxes imposed and deliver a tax receipt to the taxpayer together with a refund of any amount in the account in excess of the amount of taxes paid for that tax year. If the amount in the escrow account is not sufficient to pay the taxes for that tax year in full, the collector shall apply the money to the taxes and deliver to the taxpayer a tax receipt for the partial payment and a tax bill for the unpaid amount. If the escrow account applies to more than one taxing unit or to more than one item of property, the collector shall apply the amount to each taxing unit or item of property in proportion to the amount of taxes imposed unless the contract provides otherwise.

(h) Notwithstanding Subsection (a), if the property owner requesting a collector to establish an escrow account under this section is a disabled veteran as defined by Section 11.22 or a recipient of the Purple Heart, the Congressional Medal of Honor, the Bronze Star Medal, the Silver Star, the Legion of Merit, or a service cross awarded by a branch of the United States armed forces and the escrow account is to be used solely to provide for the payment of property taxes collected by the collector on the property owner's residence homestead for a single tax year, the collector shall enter into a contract with the property owner under this section for that tax year.

(i) Notwithstanding Subsection (a), if the property owner requesting a collector to establish an escrow account under this section is the owner of a manufactured home and the escrow account is to be used solely to provide for the payment of property taxes collected by the collector on the property owner's manufactured home for a single tax year, the collector shall enter into a contract with the property owner under this section for that tax year.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.