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