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A BILL TO BE ENTITLED
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AN ACT
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relating to installment payments of ad valorem taxes on property in |
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a disaster area or emergency area. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 31.032, Tax Code, is |
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amended to read as follows: |
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Sec. 31.032. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN |
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DISASTER AREA OR EMERGENCY AREA THAT HAS BEEN DAMAGED AS A RESULT OF |
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DISASTER OR EMERGENCY. |
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SECTION 2. Section 31.032(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to: |
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(1) real property that: |
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(A) is: |
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(i) the residence homestead of the owner or |
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consists of property that is used for residential purposes and that |
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has fewer than five living units; or |
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(ii) owned or leased by a business entity |
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that had not more than the amount calculated as provided by |
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Subsection (h) in gross receipts in the entity's most recent |
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federal tax year or state franchise tax annual period, according to |
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the applicable federal income tax return or state franchise tax |
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report of the entity; |
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(B) is located in a disaster area or emergency |
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area; and |
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(C) has been damaged as a direct result of the |
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disaster or emergency; |
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(2) tangible personal property that is owned or leased |
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by a business entity described by Subdivision (1)(A)(ii); and |
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(3) taxes that are imposed on the property by a taxing |
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unit before the first anniversary of the disaster or emergency. |
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SECTION 3. Section 31.032(g), Tax Code, is amended by |
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adding Subdivisions (3) and (4) to read as follows: |
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(3) "Emergency" means a state of emergency proclaimed |
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by the governor under Section 433.001, Government Code. |
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(4) "Emergency area" means an area designated by the |
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governor to be affected by an emergency under Section 433.001, |
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Government Code. |
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SECTION 4. 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 ON PROPERTY IN |
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DISASTER AREA OR EMERGENCY AREA THAT HAS NOT BEEN DAMAGED AS A |
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RESULT OF DISASTER OR EMERGENCY. (a) In this section, "disaster," |
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"disaster area," "emergency," and "emergency area" have the |
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meanings assigned by Section 31.032(g). |
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(b) This section applies only to: |
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(1) real property that: |
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(A) is owned or leased by a business entity that |
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had not more than the amount calculated as provided by Section |
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31.032(h) in gross receipts in the entity's most recent federal tax |
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year or state franchise tax annual period, according to the |
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applicable federal income tax return or state franchise tax report |
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of the entity; |
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(B) is located in a disaster area or emergency |
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area; and |
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(C) has not been damaged as a direct result of the |
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disaster or emergency; |
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(2) tangible personal property that is owned or leased |
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by a business entity described by Subdivision (1)(A); and |
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(3) taxes that are imposed on the property by a taxing |
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unit before the first anniversary of the disaster or emergency. |
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(c) The governing body of a taxing unit may authorize a |
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person to pay the taxing unit's taxes imposed on property that the |
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person owns in installments. If the governing body of a taxing unit |
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adopts the installment-payment option under this subsection, |
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Sections 31.032(b), (b-1), (c), and (d) apply to the payment by a |
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person of the taxing unit's taxes imposed on property that the |
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person owns in the same manner as those subsections apply to the |
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payment of taxes imposed on property to which Section 31.032 |
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applies. |
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(d) The comptroller shall adopt rules to implement this |
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section. |
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SECTION 5. Section 33.08(b), Tax Code, is amended to read as |
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follows: |
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(b) The governing body of the taxing unit or appraisal |
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district, in the manner required by law for official action, may |
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provide that taxes that become delinquent on or after June 1 under |
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Section 26.075(j), 26.15(e), 31.03, 31.031, 31.032, 31.033, 31.04, |
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or 42.42 incur an additional penalty to defray costs of collection. |
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The amount of the penalty may not exceed the amount of the |
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compensation specified in the applicable contract with an attorney |
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under Section 6.30 to be paid in connection with the collection of |
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the delinquent taxes. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |