88R3418 DRS-D
 
  By: West S.B. No. 522
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of an owner of certain residential real
  property to pay the ad valorem taxes imposed on the property in
  installments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 31, Tax Code, is amended by adding
  Section 31.034 to read as follows:
         Sec. 31.034.  INSTALLMENT PAYMENT OF TAXES ON CERTAIN
  RESIDENTIAL REAL PROPERTY. (a) This section applies only to taxes
  imposed by a taxing unit in a tax year on property that:
               (1)  is used for residential purposes; and
               (2)  has fewer than three living units.
         (b)  A person may pay a taxing unit's taxes imposed on
  property described by Subsection (a) that the person owns in eight
  equal installments without penalty or interest if the person:
               (1)  provides written notice to the taxing unit not
  later than December 31 of the year for which the taxes are imposed
  that the person will pay the taxes in eight equal monthly
  installments; and
               (2)  pays the first installment before the date on
  which the taxes become delinquent.
         (c)  Notwithstanding Subsection (b), a person may not make
  installment payments of taxes under this section on more than five
  properties at any one time.
         (d)  If the delinquency date is February 1, the second
  installment must be paid before March 1, and each subsequent
  installment must be paid before the first day of each subsequent
  month.
         (e)  If the delinquency date is a date other than February 1,
  the second installment must be paid before the first day of the
  first month after the delinquency date, and each subsequent
  installment must be paid before the first day of each subsequent
  month.
         (f)  If the person fails to make a payment before the
  applicable due date provided by this section, the unpaid
  installment is delinquent and incurs a penalty of six percent and
  interest as provided by Section 33.01(c), except that the total
  amount of penalty and interest incurred may not exceed 15 percent of
  the amount of the installment without regard to the number of months
  the installment is delinquent. The penalty provided by Section
  33.01(a) does not apply to the unpaid installment.
         (g)  A person may pay more than the amount due for each
  installment and the amount in excess of the amount due shall be
  credited to the next installment. A person may not pay less than the
  total amount due for each installment unless the collector provides
  for the acceptance of partial payments under this section. If the
  collector accepts a partial payment, penalties and interest are
  incurred only by the amount of each installment that remains unpaid
  on the applicable due date.
         SECTION 2.  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,
  31.034, 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 3.  This Act applies only to ad valorem taxes for
  which the delinquency date is on or after the effective date of this
  Act.
         SECTION 4.  This Act takes effect September 1, 2023.