Texas House Bill HB1634

Texas 2017 - 85th Regular

Caption

Relating to the waiver of penalties and interest if an error by a mortgagee results in failure to pay an ad valorem tax.

Impact

The proposed amendments in HB 1634 would directly affect taxpayers' liabilities for ad valorem taxes by introducing more lenient conditions under which penalties and interest can be waived. It aligns the tax process more closely with the realities faced by homeowners, emphasizing accountability for mortgagees in the tax notification process. The bill aims to reduce the financial burden on homeowners who may face penalties due to circumstances beyond their control, thus providing a pathway for fair treatment of taxpayers.

Summary

House Bill 1634 seeks to amend the Texas Tax Code by allowing for the waiver of penalties and interest on ad valorem taxes when an error by a mortgagee leads to the failure to pay a tax. Under the proposed legislation, if a tax bill is sent to a mortgagee but not forwarded to the property owner, and if the property owner pays the tax within 21 days after becoming aware of the delinquency, they may request a waiver of penalties and interest. This legislative change aims to protect taxpayers from financial ramifications arising from the actions (or inactions) of their mortgage lenders.

Contention

Key points of contention around HB 1634 might include the potential implications for local taxing units and the broader administrative processes for tax collection. Critics may express concerns regarding the additional burden placed on local governments that may now have to process more penalty waiver requests. Additionally, there could be discussions about the responsibilities of mortgagees and whether they should be held accountable for tax notifications. The effectiveness of this bill in truly serving the interests of taxpayers versus the potential strain on local government resources could be contested during legislative debates.