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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the penalty imposed on a delinquent |
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ad valorem tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 33.01(a) and (b), Tax Code, are amended |
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to read as follows: |
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(a) A delinquent tax incurs a penalty of six percent of the |
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amount of the tax for the first calendar month it is delinquent plus |
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one percent for each additional month or portion of a month the tax |
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remains unpaid prior to April [July] 1 of the year in which it |
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becomes delinquent. However, a tax delinquent on April [July] 1 |
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incurs a total penalty of eight [twelve] percent of the amount of |
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the delinquent tax without regard to the number of months the tax |
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has been delinquent. A delinquent tax continues to incur the |
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penalty provided by this subsection as long as the tax remains |
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unpaid, regardless of whether a judgment for the delinquent tax has |
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been rendered. |
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(b) If a person who exercises the split-payment option |
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provided by Section 31.03 [of this code] fails to make the second |
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payment before July 1, the second payment is delinquent and incurs a |
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penalty of eight [twelve] percent of the amount of unpaid tax. |
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SECTION 2. 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 3. This Act takes effect September 1, 2021. |