Bill Text: TX HB21 | 2025 | 89th Legislature 2nd Special Session | Introduced
Bill Title: Relating to the calculation of the penalty and interest incurred on a delinquent ad valorem tax.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2025-08-20 - Referred to Ways & Means [HB21 Detail]
Download: Texas-2025-HB21-Introduced.html
| 89S20011 CJC-D | ||
| By: Thompson | H.B. No. 21 | |
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| relating to the calculation of the penalty and interest incurred on | ||
| a delinquent ad valorem tax. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 31.031(b), Tax Code, is amended to read | ||
| as follows: | ||
| (b) If the individual fails to make a payment, including the | ||
| first payment, before the applicable date provided by Subsection | ||
| (a-1), the unpaid installment is delinquent and incurs [ |
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| [ |
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| penalty provided by Section 33.01(a) does not apply to the unpaid | ||
| installment. | ||
| SECTION 2. Section 31.032(c), Tax Code, is amended to read | ||
| as follows: | ||
| (c) If the person fails to make a payment before the | ||
| applicable date provided by Subsection (b), the unpaid installment | ||
| is delinquent and incurs [ |
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| as provided by Section 33.01(c). | ||
| SECTION 3. Sections 33.01(a), (b), and (c), Tax Code, are | ||
| amended to read as follows: | ||
| (a) A delinquent tax incurs a penalty of three [ |
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| of the amount of the tax for the first calendar month it is | ||
| delinquent plus one-half [ |
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| portion of a month the tax remains unpaid prior to July 1 of the year | ||
| in which it becomes delinquent. However, a tax delinquent on July 1 | ||
| incurs a total penalty of six [ |
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| delinquent tax without regard to the number of months the tax has | ||
| been delinquent. A delinquent tax continues to incur the penalty | ||
| provided by this subsection as long as the tax remains unpaid, | ||
| regardless of whether a judgment for the delinquent tax has been | ||
| rendered. | ||
| (b) If a person who exercises the split-payment option | ||
| provided by Section 31.03 [ |
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| payment before July 1, the second payment is delinquent and incurs a | ||
| penalty of six [ |
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| (c) A delinquent tax accrues simple interest at a rate of | ||
| one-half [ |
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| remains unpaid. Interest payable under this section is to | ||
| compensate the taxing unit for revenue lost because of the | ||
| delinquency. A delinquent tax continues to accrue interest under | ||
| this subsection as long as the tax remains unpaid, regardless of | ||
| whether a judgment for the delinquent tax has been rendered. | ||
| SECTION 4. The changes in law made by this Act apply only to | ||
| penalties and interest that accrue on or after the effective date of | ||
| this Act. Penalties and interest that accrued before the effective | ||
| date of this Act are governed by the law in effect when the | ||
| penalties and interest accrued, and that law is continued in effect | ||
| for that purpose. | ||
| SECTION 5. This Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
