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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of the penalty on a delinquent ad valorem tax |
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on a residence homestead. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.031(b), Tax Code, is amended to read |
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as follows: |
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(b) If the individual fails to make a payment, including the |
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first payment, before the applicable date provided by Subsection |
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(a-1), 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). [The |
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penalty provided by Section 33.01(a) does not apply to the unpaid |
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installment.] |
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SECTION 2. Section 31.032(c), Tax Code, is amended to read |
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as follows: |
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(c) Except as otherwise provided by this subsection, if [If] |
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the person fails to make a payment before the applicable date |
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provided by Subsection (b), the unpaid installment is delinquent |
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and incurs a penalty of six percent and interest as provided by |
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Section 33.01(c). A delinquent installment payment of taxes on |
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property that qualifies as the property owner's residence homestead |
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under Section 11.13 does not incur the penalty imposed under this |
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subsection. |
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SECTION 3. Section 31.035(e), Tax Code, is amended to read |
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as follows: |
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(e) Taxes for which the property owner is to receive credit |
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under the contract do not become delinquent on the delinquency date |
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otherwise provided by this chapter as long as the contract is in |
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effect and are considered paid when the service is performed. If |
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the property owner fails to perform the service, or if the taxing |
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unit determines that the service of the property owner is |
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unsatisfactory, the taxing unit shall terminate the contract and |
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notify the property owner of the termination. The unpaid taxes for |
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which the property owner was to receive credit under the contract |
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for service not yet performed become delinquent and incur [penalty |
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and] interest provided by Section 33.01 on the later of: |
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(1) the delinquency date otherwise provided by this |
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chapter for the unpaid taxes; or |
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(2) the first day of the next calendar month that |
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begins at least 21 days after the date the taxing unit delivers |
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notice to the property owner that the contract has been terminated. |
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SECTION 4. Section 33.01, Tax Code, is amended by adding |
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Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding any other provision of this section, |
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a delinquent tax on property that qualifies as the property owner's |
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residence homestead under Section 11.13 does not incur the penalty |
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imposed under Subsection (a) or (b) of this section. |
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SECTION 5. Section 33.02(b), Tax Code, is amended to read as |
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follows: |
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(b) Except as provided by Section 33.01(b-1) [Subsection |
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(b-1)], interest and a penalty accrue as provided by Sections |
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33.01(a) and (c) on the unpaid balance during the period of the |
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agreement. |
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SECTION 6. Section 33.06(d), Tax Code, is amended to read as |
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follows: |
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(d) A tax lien remains on the property and interest |
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continues to accrue during the period collection of taxes is |
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deferred or abated under this section. The annual interest rate |
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during the deferral or abatement period is five percent instead of |
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the rate provided by Section 33.01. Interest and penalties that |
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accrued or that were incurred or imposed under Section 33.01 or |
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33.07 before the date the individual files the deferral affidavit |
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under Subsection (b) or the date the judgment abating the suit is |
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entered, as applicable, are preserved. [A penalty under Section |
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33.01 is not incurred during a deferral or abatement period.] The |
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additional penalty under Section 33.07 may be imposed and collected |
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only if the taxes for which collection is deferred or abated remain |
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delinquent on or after the 181st day after the date the deferral or |
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abatement period expires. A plea of limitation, laches, or want of |
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prosecution does not apply against the taxing unit because of |
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deferral or abatement of collection as provided by this section. |
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SECTION 7. Section 33.065(g), Tax Code, is amended to read |
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as follows: |
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(g) A tax lien remains on the property and interest |
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continues to accrue during the period collection of delinquent |
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taxes is deferred or abated under this section. The annual interest |
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rate during the deferral or abatement period is eight percent |
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instead of the rate provided by Section 33.01. Interest and |
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penalties that accrued or that were incurred or imposed under |
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Section 33.01 or 33.07 before the date the individual files the |
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deferral affidavit under Subsection (c) or the date the judgment |
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abating the suit is entered, as applicable, are preserved. [A |
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penalty is not incurred on the delinquent taxes for which |
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collection is deferred or abated during a deferral or abatement |
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period.] The additional penalty under Section 33.07 may be imposed |
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and collected only if the delinquent taxes for which collection is |
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deferred or abated remain delinquent on or after the 91st day after |
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the date the deferral or abatement period expires. A plea of |
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limitation, laches, or want of prosecution does not apply against |
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the taxing unit because of deferral or abatement of collection as |
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provided by this section. |
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SECTION 8. Section 33.02(b-1), Tax Code, is repealed. |
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SECTION 9. The change in law made by this Act applies only |
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to the penalty for failure to pay a tax that becomes delinquent on |
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or after the effective date of this Act. The penalty for failure to |
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pay a tax that became delinquent before the effective date of this |
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Act is governed by the law in effect when the tax became delinquent, |
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and the former law is continued in effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2021. |