By: Birdwell, et al. S.B. No. 742
 
  (Anderson)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to installment payments of ad valorem taxes on property in
  a disaster area or emergency area.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 31.032, Tax Code, is
  amended to read as follows:
         Sec. 31.032.  INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN
  DISASTER AREA OR EMERGENCY AREA THAT HAS BEEN DAMAGED AS A RESULT OF
  DISASTER OR EMERGENCY.
         SECTION 2.  Section 31.032(a), Tax Code, is amended to read
  as follows:
         (a)  This section applies only to:
               (1)  real property that:
                     (A)  is:
                           (i)  the residence homestead of the owner or
  consists of property that is used for residential purposes and that
  has fewer than five living units; or
                           (ii)  owned or leased by a business entity
  that had not more than the amount calculated as provided by
  Subsection (h) in gross receipts in the entity's most recent
  federal tax year or state franchise tax annual period, according to
  the applicable federal income tax return or state franchise tax
  report of the entity;
                     (B)  is located in a disaster area or emergency
  area; and
                     (C)  has been damaged as a direct result of the
  disaster or emergency;
               (2)  tangible personal property that is owned or leased
  by a business entity described by Subdivision (1)(A)(ii); and
               (3)  taxes that are imposed on the property by a taxing
  unit before the first anniversary of the disaster or emergency.
         SECTION 3.  Section 31.032(g), Tax Code, is amended by
  adding Subdivisions (3) and (4) to read as follows:
               (3)  "Emergency" means a state of emergency proclaimed
  by the governor under Section 433.001, Government Code.
               (4)  "Emergency area" means an area designated by the
  governor to be affected by an emergency under Section 433.001,
  Government Code.
         SECTION 4.  Chapter 31, Tax Code, is amended by adding
  Section 31.033 to read as follows:
         Sec. 31.033.  INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN
  DISASTER AREA OR EMERGENCY AREA THAT HAS NOT BEEN DAMAGED AS A
  RESULT OF DISASTER OR EMERGENCY.  (a)  In this section, "disaster,"
  "disaster area," "emergency," and "emergency area" have the
  meanings assigned by Section 31.032(g).
         (b)  This section applies only to:
               (1)  real property that:
                     (A)  is owned or leased by a business entity that
  had not more than the amount calculated as provided by Section
  31.032(h) in gross receipts in the entity's most recent federal tax
  year or state franchise tax annual period, according to the
  applicable federal income tax return or state franchise tax report
  of the entity;
                     (B)  is located in a disaster area or emergency
  area; and
                     (C)  has not been damaged as a direct result of the
  disaster or emergency;
               (2)  tangible personal property that is owned or leased
  by a business entity described by Subdivision (1)(A); and
               (3)  taxes that are imposed on the property by a taxing
  unit before the first anniversary of the disaster or emergency.
         (c)  The governing body of a taxing unit may authorize a
  person to pay the taxing unit's taxes imposed on property that the
  person owns in installments. If the governing body of a taxing unit
  adopts the installment-payment option under this subsection,
  Sections 31.032(b), (b-1), (c), and (d) apply to the payment by a
  person of the taxing unit's taxes imposed on property that the
  person owns in the same manner as those subsections apply to the
  payment of taxes imposed on property to which Section 31.032
  applies.
         (d)  The comptroller shall adopt rules to implement this
  section.
         SECTION 5.  Section 33.08(b), Tax Code, is amended to read as
  follows:
         (b)  The governing body of the taxing unit or appraisal
  district, in the manner required by law for official action, may
  provide that taxes that become delinquent on or after June 1 under
  Section 26.075(j), 26.15(e), 31.03, 31.031, 31.032, 31.033, 31.04,
  or 42.42 incur an additional penalty to defray costs of collection.
  The amount of the penalty may not exceed the amount of the
  compensation specified in the applicable contract with an attorney
  under Section 6.30 to be paid in connection with the collection of
  the delinquent taxes.
         SECTION 6.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.