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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of an owner of certain residential real |
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property to pay the ad valorem taxes imposed on the property in |
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installments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 31, Tax Code, is amended by adding |
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Section 31.034 to read as follows: |
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Sec. 31.034. INSTALLMENT PAYMENT OF TAXES ON CERTAIN |
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RESIDENTIAL REAL PROPERTY. (a) This section applies only to taxes |
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imposed by a taxing unit in a tax year on property that: |
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(1) is used for residential purposes; and |
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(2) has fewer than three living units. |
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(b) A person may pay a taxing unit's taxes imposed on |
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property described by Subsection (a) that the person owns in eight |
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equal installments without penalty or interest if the person: |
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(1) provides written notice to the taxing unit not |
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later than December 31 of the year for which the taxes are imposed |
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that the person will pay the taxes in eight equal monthly |
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installments; and |
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(2) pays the first installment before the date on |
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which the taxes become delinquent. |
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(c) Notwithstanding Subsection (b), a person may not make |
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installment payments of taxes under this section on more than five |
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properties at any one time. |
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(d) If the delinquency date is February 1, the second |
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installment must be paid before March 1, and each subsequent |
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installment must be paid before the first day of each subsequent |
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month. |
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(e) If the delinquency date is a date other than February 1, |
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the second installment must be paid before the first day of the |
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first month after the delinquency date, and each subsequent |
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installment must be paid before the first day of each subsequent |
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month. |
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(f) If the person fails to make a payment before the |
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applicable due date provided by this section, the unpaid |
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installment is delinquent and incurs a penalty of six percent and |
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interest as provided by Section 33.01(c), except that the total |
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amount of penalty and interest incurred may not exceed 15 percent of |
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the amount of the installment without regard to the number of months |
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the installment is delinquent. The penalty provided by Section |
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33.01(a) does not apply to the unpaid installment. |
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(g) A person may pay more than the amount due for each |
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installment and the amount in excess of the amount due shall be |
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credited to the next installment. A person may not pay less than the |
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total amount due for each installment unless the collector provides |
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for the acceptance of partial payments under this section. If the |
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collector accepts a partial payment, penalties and interest are |
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incurred only by the amount of each installment that remains unpaid |
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on the applicable due date. |
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SECTION 2. 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, |
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31.034, 31.04, or 42.42 incur an additional penalty to defray costs |
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of collection. The amount of the penalty may not exceed the amount |
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of the compensation specified in the applicable contract with an |
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attorney under Section 6.30 to be paid in connection with the |
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collection of the delinquent taxes. |
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SECTION 3. This Act applies only to ad valorem taxes for |
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which the delinquency date is on or after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect September 1, 2023. |