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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of penalty on a delinquent ad valorem |
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tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 33.01(a), Tax Code, is amended to read as |
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follows: |
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(a) A delinquent tax incurs a penalty of interest calculated |
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at an annual rate that is equal to the most recent prime rate quoted |
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and published by the Federal Reserve Board as of the first day of |
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the month in which the tax becomes delinquent, but not more than six |
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percent, of the amount of the tax for the first calendar month it is |
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delinquent plus one percent for each additional month or portion of |
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a month the tax remains unpaid prior to July 1 of the year in which |
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it becomes delinquent. However, a tax delinquent on July 1 incurs a |
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total penalty of twelve percent of the amount of the delinquent tax |
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without regard to the number of months the tax has been delinquent. |
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A delinquent tax continues to incur the penalty provided by this |
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subsection as long as the tax remains unpaid, regardless of whether |
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a judgment for the delinquent tax has been rendered. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014. |