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A BILL TO BE ENTITLED
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AN ACT
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Relating to property tax deferrals and abatements for small |
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businesses located on a light rail line affected by construction. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 33, Subchapter A of the Tax Code is |
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amended by adding Section 33.066: |
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Sec. 33.066. DEFERRED COLLECTION OF TAXES FOR SMALL |
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BUSINESSES AFFECTED BY LIGHT RAIL CONSTRUCTION. (a) An individual |
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is entitled to defer tax collection or abate a suit to collect a |
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delinquent tax imposed on his/her small business property that is |
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on a rail line. |
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(b) To obtain a deferral, an individual must file with the |
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chief appraiser for the appraisal district in which the property is |
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located an affidavit stating the facts required to be established |
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by Subsection (a). The chief appraiser shall notify each taxing |
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unit participating in the district of the filing. After an |
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affidavit is filed under this subsection, a taxing unit may not file |
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suit to collect delinquent taxes on the property for which |
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collection is deferred until the individual no longer owns and |
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occupies the small business on the rail line, or six months after |
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the construction on the rail line immediately adjacent to the small |
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business ceases. |
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(c) To obtain an abatement, the individual must file in the |
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court in which the delinquent tax suit is pending an affidavit |
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stating the facts required to be established by Subsection (a). If |
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the taxing unit that filed the suit does not file a controverting |
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affidavit or if, after a hearing, the court finds the individual is |
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entitled to the deferral, the court shall abate the suit until the |
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individual no longer owns and occupies the small business property |
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on the rail line, or six months after the construction on the rail |
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line immediately adjacent to the small business ceases. The clerk |
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of the court shall deliver a copy of the judgement abating the suit |
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to the chief appraiser of each appraisal district that appraises |
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the property. |
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(d) A tax lien remains on the property during the period |
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collection of delinquent taxes is abated under this section. |
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Interest and penalties that accrued or that were incurred or |
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imposed under Section 33.01 or 33.07 before the date the individual |
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files the deferral affidavit under Subsection (b) or the date the |
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judgment abating the suit is entered, as applicable, are preserved. |
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A penalty is not incurred nor is interest accrued on the delinquent |
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taxes for which collection is deferred or abated during a deferral |
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or abatement period. The additional penalty under Section 33.07 may |
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be imposed and collected only if the delinquent taxes for which |
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collection is deferred or abated remain delinquent on or after the |
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91st day after the date the deferral or abatement period expires. A |
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plea of limitation, laches, or want of prosecution does not apply |
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against the taxing unit because of deferral or abatement of |
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collection as provided by this section. |
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(e) Each year the chief appraiser for each appraisal |
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district shall publicize in a manner reasonably designed to notify |
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all residents of the county for which the appraisal district is |
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established of the provisions of this section and, specifically, |
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the method by which an eligible person may obtain a deferral. |
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(f) For this section: |
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"Small business" means a solvent business that does not have |
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more than $1,000,000 in gross annual revenue; |
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"On a rail line" means a property that is immediately |
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adjacent to the light rail corridor or directly affected by light |
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rail construction. |
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SECTION 2. This Act takes effect September 1, 2013. |