H.B. No. 1597
 
 
 
 
AN ACT
  relating to installment payments of ad valorem taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         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.
         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.
         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.
         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.
         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.
         SECTION 6.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1597 was passed by the House on May 7,
  2013, by the following vote:  Yeas 143, Nays 1, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1597 was passed by the Senate on May
  22, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor