BILL ANALYSIS

S.B. 1951

By: Paxton

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that a 10 percent penalty is imposed on any taxpayer who fails to timely file a personal property rendition statement or property report and that the appraisal district imposing the penalty is required to send notice of the penalty to the taxpayer via first class mail, though there is no statutory deadline for doing so. The bill sponsor has further informed the committee that some appraisal districts are imposing rendition penalties without taxpayers ever receiving a penalty notice in the mail or having an idea a penalty was levied because the penalty is embedded in the "tax due" amount on the tax bill. S.B. 1951 seeks to provide additional transparency and taxpayer notice requirements with respect to late rendition penalties and removes the financial incentive for appraisal districts to impose such penalties.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1951 amends the Tax Code to revise the requirement for the chief appraiser to deliver by first class mail a notice of an imposition of a penalty on a person who fails to timely file a rendition statement or property report in an amount equal to 10 percent of the total amount of taxes imposed on the property for that year by taxing units participating in the appraisal district by doing the following with respect to that notice:

· changing the method of delivery from first class to certified mail; and

· specifying that the chief appraiser deliver the notice not later than June 1.

The bill, with respect to the authorization for the notice to be delivered with a notice of appraised value of the person's property if practicable, removes the provision conditioning such delivery in that manner on it being practicable to do so. The bill requires a property owner's tax bill to state the amount of tax due and the amount of the penalty due as separate line items. The bill repeals the provision requiring a collector who collects the penalty described by the bill's provisions to remit to the appraisal district that employs the chief appraiser who imposed the penalty an amount equal to five percent of the penalty amount collected.

S.B. 1951 repeals Section 22.28(d), Tax Code.

S.B. 1951 applies only to a property tax year that begins on or after the bill's effective date.

EFFECTIVE DATE

January 1, 2026.