Texas 2013 - 83rd Regular

Texas House Bill HB1597 Compare Versions

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1	1	By: N. Gonzalez of El Paso, et al. H.B. No. 1597
2	2	(Senate Sponsor - Hinojosa)
3	3	(In the Senate - Received from the House May 8, 2013;
4	4	May 9, 2013, read first time and referred to Committee on
5	5	Intergovernmental Relations; May 16, 2013, reported favorably by
6	6	the following vote: Yeas 4, Nays 0; May 16, 2013, sent to
7	7	printer.)
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to installment payments of ad valorem taxes.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 31.031, Tax Code, is amended to read as
15	15	follows:
16	16	Sec. 31.031. INSTALLMENT PAYMENTS OF CERTAIN HOMESTEAD
17	17	TAXES. (a) This section applies only to:
18	18	(1) an individual who is:
19	19	(A) disabled or at least 65 years of age; and
20	20	(B) qualified for an exemption under Section
21	21	11.13(c); or
22	22	(2) an individual who is[:
23	23	[(A) the unmarried surviving spouse of a disabled
24	24	veteran; and
25	25	[(B)] qualified for an exemption under Section
26	26	11.22.
27	27	(a-1) An [If before the delinquency date an] individual to
28	28	whom this section applies may pay [pays at least one-fourth of] a
29	29	taxing unit's taxes imposed on property that the person owns and
30	30	occupies as a residence homestead in four equal installments
31	31	without penalty or interest if the first installment is paid before
32	32	the delinquency date and is[,] accompanied by notice to the taxing
33	33	unit that the person will pay the remaining taxes in three equal
34	34	installments[, the person may pay the remaining taxes without
35	35	penalty or interest in three equal installments]. The second
36	36	[first] installment must be paid before April 1, the third [second]
37	37	installment before June 1, and the fourth [third] installment
38	38	before August 1.
39	39	(a-2) Notwithstanding the deadline prescribed by Subsection
40	40	(a-1) for payment of the first installment, an individual to whom
41	41	this section applies may pay the taxes in four equal installments as
42	42	provided by Subsection (a-1) if the first installment is paid and
43	43	the required notice is provided before March 1.
44	44	(b) If the individual fails to make a payment, including the
45	45	first payment, before the applicable date provided by Subsection
46	46	(a-1) [(a)], the unpaid amount is delinquent and incurs a penalty of
47	47	six percent and interest as provided by Section 33.01(c). The
48	48	penalty provided by Section 33.01(a) does not apply to the unpaid
49	49	amount.
50	50	(c) An individual may pay more than the amount due for each
51	51	installment and the amount in excess of the amount due shall be
52	52	credited to the next installment. An individual may not pay less
53	53	than the total amount due for each installment unless the collector
54	54	provides for the acceptance of partial payments under this section.
55	55	If the collector accepts a partial payment, penalties and interest
56	56	are incurred only by the amount of each installment that remains
57	57	unpaid on the applicable date provided by Subsection (a-1) [(a)].
58	58	(d) If the delinquency date for taxes to which this section
59	59	applies is postponed to May 1 or a later date, the collector shall
60	60	extend each installment deadline provided by Subsection (a-1) [(a)]
61	61	by the number of months that the delinquency date was postponed.
62	62	SECTION 2. Section 33.02, Tax Code, is amended by amending
63	63	Subsections (a) and (b) and adding Subsection (b-1) to read as
64	64	follows:
65	65	(a) The collector for a taxing unit may enter into an
66	66	agreement with a person delinquent in the payment of the tax for
67	67	payment of the tax, penalties, and interest in installments. The
68	68	collector for a taxing unit shall, on request by a person delinquent
69	69	in the payment of the tax on a residence homestead, enter into an
70	70	agreement with the person for payment of the tax, penalties, and
71	71	interest in installments if the person has not entered into an
72	72	installment agreement with the collector for the taxing unit under
73	73	this section in the preceding 24 months. An installment [The]
74	74	agreement under this section:
75	75	(1) must be in writing;
76	76	(2) must provide for payments to be made in equal
77	77	monthly installments;
78	78	(3) must extend for a period of at least 12 months; and
79	79	(4) may not extend for a period of more than 36 months.
80	80	(b) Except as provided by Subsection (b-1), interest
81	81	[Interest] and a penalty accrue as provided by Sections 33.01(a)
82	82	and (c) [Subsections (a) and (c) of Section 33.01] on the unpaid
83	83	balance during the period of the agreement.
84	84	(b-1) Except as otherwise provided by this subsection, a
85	85	penalty does not accrue as provided by Section 33.01(a) on the
86	86	unpaid balance during the period of the agreement if the property
87	87	that is the subject of the agreement is a residence homestead. If
88	88	the property owner fails to make a payment as required by the
89	89	agreement, a penalty accrues as provided by Section 33.01(a) on the
90	90	unpaid balance as if the owner had not entered into the agreement.
91	91	SECTION 3. Section 33.04, Tax Code, is amended to read as
92	92	follows:
93	93	Sec. 33.04. NOTICE OF DELINQUENCY. (a) At least once each
94	94	year the collector for a taxing unit shall deliver a notice of
95	95	delinquency to each person whose name appears on the current
96	96	delinquent tax roll. However, the notice need not be delivered if:
97	97	(1) a bill for the tax was not mailed under Section
98	98	31.01(f); or
99	99	(2) the collector does not know and by exercising
100	100	reasonable diligence cannot determine the delinquent taxpayer's
101	101	name and address.
102	102	(b) A notice of delinquency must contain the following
103	103	statement in capital letters: "IF THE PROPERTY DESCRIBED IN THIS
104	104	DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE (NAME
105	105	OF TAXING UNIT) REGARDING A RIGHT YOU MAY HAVE TO ENTER INTO AN
106	106	INSTALLMENT AGREEMENT DIRECTLY WITH THE (NAME OF TAXING UNIT) FOR
107	107	THE PAYMENT OF THESE TAXES."
108	108	(c) The collector for a taxing unit must deliver a notice of
109	109	delinquency to a person who is in breach of an installment agreement
110	110	under Section 33.02 and to any other owner of an interest in the
111	111	property subject to the agreement whose name appears on the
112	112	delinquent tax roll before the collector may seize and sell the
113	113	property or file a suit to collect a delinquent tax subject to the
114	114	agreement.
115	115	SECTION 4. Chapter 51, Property Code, is amended by adding
116	116	Section 51.0011 to read as follows:
117	117	Sec. 51.0011. DEFAULT ARISING FROM DELINQUENT AD VALOREM
118	118	TAXES: INSTALLMENT AGREEMENTS. (a) Notwithstanding any agreement
119	119	to the contrary, a debtor is not in default under a deed of trust or
120	120	other contract lien on real property used as the debtor's residence
121	121	for the delinquent payment of ad valorem taxes if:
122	122	(1) the debtor gave notice to the mortgage servicer of
123	123	the intent to enter into an installment agreement with the taxing
124	124	unit under Section 33.02, Tax Code, for the payment of the taxes at
125	125	least 10 days before the date the debtor entered into the agreement;
126	126	and
127	127	(2) the property is protected from seizure and sale
128	128	and a suit may not be filed to collect a delinquent tax on the
129	129	property as provided by Section 33.02(d), Tax Code.
130	130	(b) A mortgage servicer who receives a notice described by
131	131	Subsection (a)(1) may pay the taxes subject to the installment
132	132	agreement at any time.
133	133	(c) A mortgage servicer who receives a notice described by
134	134	Subsection (a)(1) and gives the debtor notice that the mortgage
135	135	servicer intends to accelerate the note securing the deed of trust
136	136	or other contract lien as a result of the delinquency of the taxes
137	137	that are subject to the installment agreement must rescind the
138	138	notice if the debtor enters into the agreement not later than the
139	139	30th day after the date the debtor delivers the notice.
140	140	SECTION 5. (a) The change in law made by this Act to Section
141	141	31.031, Tax Code, applies only to ad valorem taxes imposed for a tax
142	142	year beginning on or after the effective date of this Act.
143	143	(b) The change in law made by this Act to Section 33.02, Tax
144	144	Code, applies only to an installment agreement for the payment of
145	145	delinquent ad valorem taxes entered into on or after the effective
146	146	date of this Act. An installment agreement for the payment of
147	147	delinquent ad valorem taxes entered into before the effective date
148	148	of this Act is governed by the law in effect on the date the
149	149	agreement was entered into, and the former law is continued in
150	150	effect for that purpose.
151	151	(c) The change in law made by this Act to Section 33.04, Tax
152	152	Code, applies only to a notice of delinquency delivered on or after
153	153	the effective date of this Act. A notice of delinquency delivered
154	154	before the effective date of this Act is governed by the law in
155	155	effect on the date the notice was delivered, and the former law is
156	156	continued in effect for that purpose.
157	157	SECTION 6. This Act takes effect September 1, 2013.
158	158	* * * * *