Texas Senate Bill SB689

Texas 2021 - 87th Regular

Caption

Relating to the authority of the governing body of a taxing unit to waive penalties and interest on delinquent ad valorem taxes imposed on property located in a disaster area.

Impact

The impact of SB689 on state laws is significant, as it empowers local governing bodies with more discretion to assist residents affected by disasters. This flexibility in tax administration is intended to alleviate the financial strain on property owners who may be struggling to recover from disasters. By removing penalties and interest for delinquent taxes in these situations, the bill is designed to encourage timely compliance with tax obligations once the crisis is resolved, thereby promoting economic stability in affected communities.

Summary

SB689 introduces amendments to the Texas Tax Code, permitting the governing body of a taxing unit to waive penalties and interest on delinquent ad valorem taxes for properties located in areas declared as disaster zones. The legislation targets situations following natural disasters where property owners may face financial hardship due to the additional burden of unpaid taxes. By enabling local governments to offer these tax relief measures, the bill aims to assist taxpayers in managing their financial responsibilities in the wake of such calamities.

Contention

While the bill aims to provide necessary support to taxpayers in disaster situations, there may be concerns regarding the uniformity of its application across different taxing units. Some legislators and local government officials may argue that such waivers could lead to inconsistencies in tax enforcement and tension between the need for revenue and the necessity of providing relief. As local governments navigate these decisions, they will need to balance the financial implications with the humanitarian intent of the bill.