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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment in installments of ad valorem taxes by |
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members or veterans of the United States armed forces. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 31, Tax Code, is amended by adding |
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Section 31.033 to read as follows: |
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Sec. 31.033. INSTALLMENT PAYMENTS OF TAXES BY MEMBERS OR |
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VETERANS OF THE UNITED STATES ARMED FORCES. (a) This section |
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applies only to taxes imposed by a taxing unit in a tax year on: |
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(1) real property that is: |
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(A) the residence homestead for the tax year of a |
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veteran or active duty service member or consists of property owned |
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by a veteran or active duty service member that is used for |
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residential purposes and that has fewer than five living units; or |
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(B) owned or leased by a business entity that on |
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the due date for the taxes is owned by a veteran or active duty |
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service member and that had not more in gross receipts in the |
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entity's most recent federal tax year or state franchise tax annual |
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period, according to the applicable federal income tax return or |
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state franchise tax report of the entity than the limit on gross |
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receipts calculated for the current tax year under Section |
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31.032(h); and |
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(2) tangible personal property that on the due date |
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for the taxes is owned or leased by a business entity described by |
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Subdivision (1)(B). |
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(b) A veteran or active duty service member may pay a taxing |
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unit's taxes imposed on property that the veteran or active duty |
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service member owns in eight equal installments without penalty or |
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interest if the first installment is paid before the first day of |
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the first month that begins after the delinquency date and is |
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accompanied by notice to the taxing unit that the veteran or active |
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duty service member will pay the remaining taxes in seven equal |
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installments. |
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(c) If the delinquency date is February 1, the second |
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installment must be paid before May 1, the third installment must be |
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paid before August 1, the fourth installment must be paid before |
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November 1, the fifth installment must be paid before February 1 of |
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the following year, the sixth installment must be paid before May 1 |
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of that year, the seventh installment must be paid before August 1 |
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of that year, and the eighth installment must be paid before |
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November 1 of that year. |
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(d) If the delinquency date is a date other than February 1, |
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the second installment must be paid before the first day of the |
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third month after the delinquency date, the third installment must |
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be paid before the first day of the sixth month after the |
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delinquency date, the fourth installment must be paid before the |
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first day of the ninth month after the delinquency date, the fifth |
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installment must be paid before the first day of the 12th month |
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after the delinquency date, the sixth installment must be paid |
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before the first day of the 15th month after the delinquency date, |
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the seventh installment must be paid before the first day of the |
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18th month after the delinquency date, and the eighth installment |
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must be paid before the first day of the 21st month after the |
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delinquency date. |
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(e) If the veteran or active duty service member fails to |
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make a payment before the applicable due date provided by this |
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section, the unpaid installment is delinquent and incurs a penalty |
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of six percent and interest as provided by Section 33.01(c). |
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(f) A veteran or active duty service member may pay more |
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than the amount due for each installment and the amount in excess of |
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the amount due shall be credited to the next installment. A veteran |
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or active duty service member may not pay less than the total amount |
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due for each installment unless the collector provides for the |
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acceptance of partial payments under this section. If the collector |
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accepts a partial payment, penalties and interest are incurred only |
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by the amount of each installment that remains unpaid on the |
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applicable due date. |
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(g) The comptroller shall adopt rules to implement this |
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section. |
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(h) In this section: |
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(1) "Active duty service member" means a person with |
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full-time duty status in the active uniformed service of the United |
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States, including members of the National Guard and Reserve on |
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active duty orders pursuant to 10 U.S.C. Sections 1209 and 1211. |
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(2) "Veteran" means a person who has served in the |
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army, navy, air force, coast guard, or marine corps of the United |
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States or an auxiliary service of one of those branches of the armed |
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forces. |
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SECTION 2. This Act applies only to ad valorem taxes for |
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which the delinquency date is on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2019. |