83R21606 TJB-D

By: Canales, Farias H.B. No. 2990

Substitute the following for H.B. No. 2990:

By: Menendez C.S.H.B. No. 2990

A BILL TO BE ENTITLED

AN ACT

relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.

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

SECTION 1. Section 33.07, Tax Code, is amended by amending Subsection (a) and adding Subsections (e) and (f) to read as follows:

(a) A taxing unit or appraisal district may provide, in the manner required by law for official action by the body, that taxes that become delinquent on or after February 1 of a year but not later than May 1 of that year and that remain delinquent on July 1 of the year in which they become delinquent incur an additional penalty to defray costs of collection, if the unit or district or another unit that collects taxes for the unit has contracted with an attorney pursuant to Section 6.30. Except as provided by Subsection (e), the [The] amount of the penalty may not exceed the amount of the compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes.

(e) If the property owner is a disabled veteran and the property is the veteran's residence homestead, the amount of the additional penalty may not exceed the lesser of:

(1) the amount of the penalty prescribed by Subsection (a); or

(2) an amount equal to the applicable percentage of the amount of the delinquent taxes for which the additional penalty is incurred, as follows:

(A) six percent if the taxes remain delinquent on July 1 of the tax year in which the penalty is incurred;

(B) 15 percent if the taxes remain delinquent on July 1 of the first tax year after the tax year in which the penalty is incurred; or

(C) 20 percent if the taxes remain delinquent on July 1 of the second tax year after the tax year in which the penalty is incurred.

(f) In this section:

(1) "Disabled veteran" has the meaning assigned by Section 11.22.

(2) "Residence homestead" has the meaning assigned by Section 11.13.

SECTION 2. Section 33.08, Tax Code, is amended by amending Subsection (b) and adding Subsections (f) and (g) to read as follows:

(b) The governing body of the taxing unit or appraisal district, in the manner required by law for official action, may provide that taxes that become delinquent on or after June 1 under Section 26.07(f), 26.15(e), 31.03, 31.031, 31.032, 31.04, or 42.42 incur an additional penalty to defray costs of collection. Except as provided by Subsection (f), the [The] amount of the penalty may not exceed the amount of the compensation specified in the applicable contract with an attorney under Section 6.30 to be paid in connection with the collection of the delinquent taxes.

(f) If the property owner is a disabled veteran and the property is the veteran's residence homestead, the amount of the additional penalty may not exceed the lesser of:

(1) the amount of the penalty prescribed by Subsection (b); or

(2) an amount equal to the applicable percentage of the amount of the delinquent taxes for which the additional penalty is incurred, as follows:

(A) six percent if the taxes remain delinquent on the date the penalty is incurred as provided by Subsection (c);

(B) 15 percent if the taxes remain delinquent on the first anniversary of the date the penalty is incurred as provided by Subsection (c); or

(C) 20 percent if the taxes remain delinquent on the second anniversary of the date the penalty is incurred as provided by Subsection (c).

(g) In this section:

(1) "Disabled veteran" has the meaning assigned by Section 11.22.

(2) "Residence homestead" has the meaning assigned by Section 11.13.

SECTION 3. Section 33.11, Tax Code, is amended by amending Subsection (c) and adding Subsections (h) and (i) to read as follows:

(c) Except as provided by Subsection (h), the [The] amount of the penalty may not exceed the amount of the compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes.

(h) If the property owner is a disabled veteran and the property is the veteran's residence homestead, the amount of the additional penalty may not exceed the lesser of:

(1) the amount of the penalty prescribed by Subsection (c); or

(2) an amount equal to the applicable percentage of the amount of the delinquent taxes for which the additional penalty is incurred, as follows:

(A) six percent if the taxes remain delinquent on the date the penalty is incurred as provided by Subsection (b);

(B) 15 percent if the taxes remain delinquent on the first anniversary of the date the penalty is incurred as provided by Subsection (b); or

(C) 20 percent if the taxes remain delinquent on the second anniversary of the date the penalty is incurred as provided by Subsection (b).

(i) In this section:

(1) "Disabled veteran" has the meaning assigned by Section 11.22.

(2) "Residence homestead" has the meaning assigned by Section 11.13.

SECTION 4. The changes in law made by this Act apply only to the additional penalty on taxes that become delinquent on or after the effective date of this Act.

SECTION 5. 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.