83R9944 DDT-D
By: N. Gonzalez of El Paso H.B. No. 2324
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of penalty on a delinquent ad valorem
tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.01(a), Tax Code, is amended to read as
follows:
(a) A delinquent tax incurs a penalty of interest calculated
at an annual rate that is equal to the most recent prime rate quoted
and published by the Federal Reserve Board as of the first day of
the month in which the tax becomes delinquent, but not more than six
percent, of the amount of the tax for the first calendar month it is
delinquent plus one percent for each additional month or portion of
a month the tax remains unpaid prior to July 1 of the year in which
it becomes delinquent. However, a tax delinquent on July 1 incurs a
total penalty of twelve percent of the amount of the delinquent tax
without regard to the number of months the tax has been delinquent.
A delinquent tax continues to incur the penalty provided by this
subsection as long as the tax remains unpaid, regardless of whether
a judgment for the delinquent tax has been rendered.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2014.