By: Farrar H.B. No. 1693
A BILL TO BE ENTITLED
AN ACT
Relating to property tax deferrals and abatements for small
businesses located on a light rail line affected by construction.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 33, Subchapter A of the Tax Code is
amended by adding Section 33.066:
Sec. 33.066. DEFERRED COLLECTION OF TAXES FOR SMALL
BUSINESSES AFFECTED BY LIGHT RAIL CONSTRUCTION. (a) An individual
is entitled to defer tax collection or abate a suit to collect a
delinquent tax imposed on his/her small business property that is
on a rail line.
(b) To obtain a deferral, an individual must file with the
chief appraiser for the appraisal district in which the property is
located an affidavit stating the facts required to be established
by Subsection (a). The chief appraiser shall notify each taxing
unit participating in the district of the filing. After an
affidavit is filed under this subsection, a taxing unit may not file
suit to collect delinquent taxes on the property for which
collection is deferred until the individual no longer owns and
occupies the small business on the rail line, or six months after
the construction on the rail line immediately adjacent to the small
business ceases.
(c) To obtain an abatement, the individual must file in the
court in which the delinquent tax suit is pending an affidavit
stating the facts required to be established by Subsection (a). If
the taxing unit that filed the suit does not file a controverting
affidavit or if, after a hearing, the court finds the individual is
entitled to the deferral, the court shall abate the suit until the
individual no longer owns and occupies the small business property
on the rail line, or six months after the construction on the rail
line immediately adjacent to the small business ceases. The clerk
of the court shall deliver a copy of the judgement abating the suit
to the chief appraiser of each appraisal district that appraises
the property.
(d) A tax lien remains on the property during the period
collection of delinquent taxes is abated under this section.
Interest and penalties that accrued or that were incurred or
imposed under Section 33.01 or 33.07 before the date the individual
files the deferral affidavit under Subsection (b) or the date the
judgment abating the suit is entered, as applicable, are preserved.
A penalty is not incurred nor is interest accrued on the delinquent
taxes for which collection is deferred or abated during a deferral
or abatement period. The additional penalty under Section 33.07 may
be imposed and collected only if the delinquent taxes for which
collection is deferred or abated remain delinquent on or after the
91st day after the date the deferral or abatement period expires. A
plea of limitation, laches, or want of prosecution does not apply
against the taxing unit because of deferral or abatement of
collection as provided by this section.
(e) Each year the chief appraiser for each appraisal
district shall publicize in a manner reasonably designed to notify
all residents of the county for which the appraisal district is
established of the provisions of this section and, specifically,
the method by which an eligible person may obtain a deferral.
(f) For this section:
"Small business" means a solvent business that does not have
more than $1,000,000 in gross annual revenue;
"On a rail line" means a property that is immediately
adjacent to the light rail corridor or directly affected by light
rail construction.
SECTION 2. This Act takes effect September 1, 2013.