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A BILL TO BE ENTITLED
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AN ACT
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relating to the prepayment 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. Sections 31.072(a), (c), and (d), Tax Code, are |
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amended to read as follows: |
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(a) At the request of a property owner, the [The] collector |
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for a taxing unit shall [may] enter a contract with the [a] property |
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owner under which the property owner deposits money in an escrow |
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account maintained by the collector to provide for the payment of |
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property taxes collected by the collector on any property the |
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person owns. |
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(c) A contract under this section must allow [require] the |
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property owner to make [monthly] deposits to the escrow account at |
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any time until the earlier of the following occurs: |
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(1) the estimated amount of taxes as provided [set] in |
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the contract under Subsection (d) [of this section] accrues in the |
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account; or |
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(2) [until] the tax bill for the property is |
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prepared[, whichever occurs earlier]. |
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(d) On request by a property owner to establish an escrow |
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account under this section, the collector shall estimate the amount |
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of taxes to be imposed on the property by the affected taxing units |
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in that year and include that amount in the contract to establish |
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the escrow account. The contract must also include an estimate of |
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the amount of money the property owner would need to deposit to the |
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escrow account each month in order to[. A contract to establish an
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escrow account must provide for deposits that would] provide, as of |
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the date the collector estimates the tax bill for the property will |
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be prepared, a total deposit to the escrow account that is not less |
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than the amount of taxes estimated by the collector or the amount of |
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taxes imposed on the property by the affected taxing units in the |
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preceding year, whichever is less. The contract may not require the |
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property owner to comply with a schedule of deposits or prescribe a |
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minimum amount that must be deposited to the escrow account. The |
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collector may agree to a deposit of a greater amount on the property |
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owner's request. |
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SECTION 2. Sections 31.072(h) and (i), Tax Code, are |
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repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to a contract under Section 31.072, Tax Code, that is entered into |
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on or after the effective date of this Act. A contract under |
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Section 31.072, Tax Code, that is entered into before the effective |
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date of this Act is governed by the law in effect when the contract |
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was entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |