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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the owner of a residence homestead to |
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receive a discount for making an early payment of the ad valorem |
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taxes on the homestead. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.01(c), Tax Code, is amended to read as |
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follows: |
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(c) The tax bill or a separate statement accompanying the |
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tax bill shall: |
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(1) identify the property subject to the tax; |
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(2) state the appraised value, assessed value, and |
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taxable value of the property; |
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(3) if the property is land appraised as provided by |
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Subchapter C, D, E, or H, Chapter 23, state the market value and the |
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taxable value for purposes of deferred or additional taxation as |
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provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable; |
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(4) state the assessment ratio for the taxing unit; |
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(5) state the type and amount of any partial exemption |
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applicable to the property, indicating whether it applies to |
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appraised or assessed value; |
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(6) state the total tax rate for the taxing unit; |
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(7) state the amount of tax due, the due date, and the |
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delinquency date; |
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(8) explain the payment option and discounts provided |
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by Sections 31.03 and 31.05, if available to the taxing unit's |
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taxpayers, and state the date on which each of the discount periods |
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provided by Section 31.05 concludes, if the discounts are |
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available; |
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(8-a) if the property is the owner's residence |
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homestead, explain the discounts provided by Section 31.055 and |
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state the date on which each of the discount periods provided by |
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that section concludes; |
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(9) state the rates of penalty and interest imposed |
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for delinquent payment of the tax; |
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(10) include the name and telephone number of the |
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assessor for the taxing unit and, if different, of the collector for |
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the taxing unit; |
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(11) for real property, state for the current tax year |
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and each of the preceding five tax years: |
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(A) the appraised value and taxable value of the |
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property; |
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(B) the total tax rate for the taxing unit; |
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(C) the amount of taxes imposed on the property |
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by the taxing unit; and |
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(D) the difference, expressed as a percent |
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increase or decrease, as applicable, in the amount of taxes imposed |
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on the property by the taxing unit compared to the amount imposed |
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for the preceding tax year; and |
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(12) for real property, state the differences, |
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expressed as a percent increase or decrease, as applicable, in the |
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following for the current tax year as compared to the fifth tax year |
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before that tax year: |
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(A) the appraised value and taxable value of the |
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property; |
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(B) the total tax rate for the taxing unit; and |
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(C) the amount of taxes imposed on the property |
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by the taxing unit. |
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SECTION 2. Sections 31.04(a), (c), and (d), Tax Code, are |
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amended to read as follows: |
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(a) Except as provided by Subsection (d), if [If] a tax bill |
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is mailed after January 10, the delinquency date provided by |
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Section 31.02 [of this code] is postponed to the first day of the |
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next month that will provide a period of at least 21 days after the |
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date of mailing for payment of taxes before the taxes become |
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delinquent [unless the taxing unit has adopted the discounts |
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provided by Section 31.05(c) of this code, in which case the |
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delinquency date is determined by Subsection (d) of this section]. |
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(c) A payment option provided by Section 31.03 [of this |
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code] or a discount [adopted] under Section 31.05(b) or 31.055(b) |
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[of this code] does not apply to taxes that are calculated too late |
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for it to be available. |
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(d) If a taxing unit mails its tax bills after September 30 |
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and [adopts] the discounts provided by Section 31.05(c) or |
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31.055(c) apply to the taxes due [of this code], the delinquency |
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date is postponed to the first day of the next month following the |
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fourth full calendar month following the date the tax bills were |
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mailed. |
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SECTION 3. The heading to Section 31.05, Tax Code, is |
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amended to read as follows: |
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Sec. 31.05. DISCOUNTS FOR EARLY PAYMENT OF TAX ON PROPERTY |
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OTHER THAN RESIDENCE HOMESTEAD. |
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SECTION 4. Section 31.05(a), Tax Code, is amended to read as |
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follows: |
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(a) The governing body of a taxing unit may adopt the |
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discounts provided by Subsection (b) or Subsection (c), or both, in |
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the manner required by law for official action by the body. The |
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discounts, if adopted, apply only to taxes on property other than a |
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residence homestead and only to that taxing unit's taxes. If a |
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taxing unit adopts both discounts under Subsections (b) and (c), |
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the discounts adopted under Subsection (b) apply unless the tax |
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bills for the taxing unit are mailed after September 30, in which |
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case only the discounts under Subsection (c) apply. A taxing unit |
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that collects taxes for another taxing unit that adopts the |
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discounts may prepare and mail separate tax bills on behalf of the |
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adopting taxing unit and may charge an additional fee for preparing |
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and mailing the separate tax bills and for collecting the taxes |
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imposed by the adopting taxing unit. If under an intergovernmental |
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contract a county assessor-collector collects taxes for a taxing |
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unit that adopts the discounts, the county assessor-collector may |
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terminate the contract if the county has adopted a discount policy |
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that is different from the discount policy adopted by the adopting |
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taxing unit. |
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SECTION 5. Chapter 31, Tax Code, is amended by adding |
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Section 31.055 to read as follows: |
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Sec. 31.055. DISCOUNT FOR EARLY PAYMENT OF TAX ON RESIDENCE |
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HOMESTEAD. (a) A person is entitled to the discounts provided by |
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Subsections (b) and (c) on the amount of tax due on real property |
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that is the person's residence homestead. |
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(b) If a taxing unit mails its tax bills on or before |
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September 30, the following discounts apply: |
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(1) three percent if the tax is paid in October or |
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earlier; |
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(2) two percent if the tax is paid in November; and |
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(3) one percent if the tax is paid in December. |
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(c) If a taxing unit mails its tax bills after September 30, |
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the following discounts apply: |
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(1) three percent if the tax is paid before or during |
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the next full calendar month following the date on which the tax |
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bills were mailed; |
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(2) two percent if the tax is paid during the second |
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full calendar month following the date on which the tax bills were |
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mailed; and |
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(3) one percent if the tax is paid during the third |
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full calendar month following the date on which the tax bills were |
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mailed. |
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SECTION 6. Section 31.07(c), Tax Code, is amended to read as |
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follows: |
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(c) A collector may adopt a policy of accepting partial |
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payments of property taxes. A payment option provided by Section |
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31.03 [of this code] or a discount [adopted] under Section 31.05 or |
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31.055 [of this code] does not apply to any portion of a partial |
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payment. If a collector accepts a partial payment on a tax bill |
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that includes taxes for more than one taxing unit, the collector |
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shall allocate the partial payment among all the taxing units |
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included in the bill in proportion to the amount of tax included in |
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the bill for each taxing unit, unless the collector under |
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Subsection (b) has adopted a policy of accepting payments of a |
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taxing unit's taxes separate from the taxes of other taxing units |
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included in the same bill and the taxpayer directs that the partial |
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payment be allocated in specific amounts to one or more specific |
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taxing units. Acceptance of a partial payment does not affect the |
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date that the tax becomes delinquent, but the penalties and |
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interest provided by Section 33.01 [of this code] are incurred only |
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by the portion of a tax that remains unpaid on the date the tax |
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becomes delinquent. |
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SECTION 7. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.107 to read as follows: |
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Sec. 343.107. PAYMENT OF PROPERTY TAXES. (a) In this |
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section, "mortgage servicer" has the meaning assigned by Section |
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51.0001, Property Code. |
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(b) A mortgage servicer who pays property tax on behalf of a |
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borrower shall, on the written request of the borrower, pay the |
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property tax on a property occupied by the borrower as the |
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borrower's residence homestead early enough for the borrower to |
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qualify for the three percent discount provided by Section |
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31.055(b) or (c), Tax Code, as applicable. |
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SECTION 8. The changes in law made by this Act apply only to |
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ad valorem taxes imposed for an ad valorem tax year that begins on |
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or after the effective date of this Act. |
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SECTION 9. Section 343.107, Finance Code, as added by this |
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Act, applies only to a mortgage that is issued on or after the |
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effective date of this Act. |
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SECTION 10. This Act takes effect January 1, 2024. |