Texas House Bill HB2635

Texas 2017 - 85th Regular

Caption

Relating to the authority of a property owner to pay certain deferred ad valorem taxes and interest in installments.

Impact

The bill introduces flexibility in tax payments for heirs of property owners, enabling them to fulfill their tax obligations without the immediate financial burden posed by large lump-sum payments. This aligns with the intent of making tax payment processes more manageable for property owners, fostering a sense of fairness and gradual compliance. Moreover, local tax collectors will be required to establish written installment agreements that reflect this change, ensuring that property owners have clear and manageable payment structures put in place.

Summary

House Bill 2635 primarily addresses the authority of property owners regarding the payment of deferred ad valorem taxes and associated interest. Specifically, it allows individuals who inherit property from a deceased individual, who was receiving a tax deferral, to pay the deferred taxes in installments. This is particularly relevant for individuals who may face challenges in paying substantial back taxes immediately following the inheritance of a property, especially if any form of financial planning was absent in the deceased individual’s estate management.

Contention

While the introduction of HB2635 seems beneficial from a property management and financial responsibility standpoint, concerns could arise regarding the potential for extended periods of deferred tax payments leading to revenue delays for local governments. Critics may point out that while easing the immediate burden on individuals, protracted installment plans could complicate budgeting and operational planning for taxing entities. This contention centers around ensuring a balance between aiding individual property owners and maintaining the financial health of local governmental entities reliant on tax revenues.