Bill Text: TX SB522 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the authority of an owner of certain residential real property to pay the ad valorem taxes imposed on the property in installments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-02-17 - Referred to Local Government [SB522 Detail]

Download: Texas-2023-SB522-Introduced.html

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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.