LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 19, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2343 by Zedler (Relating to the waiver of penalties and interest on taxes unpaid due to an act or omission of an agent of a governmental entity.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Section 33.011, of the Tax Code, related to waiver of penalties and interest, to require a taxing unit to waive interest on a delinquent tax if an act or omission of an officer, employee, or agent of a taxing unit, appraisal district, or other political subdivision or governmental entity caused the taxpayer's failure to pay the tax before delinquency and if the tax is paid not later than the 21st day after the date the taxpayer knows or should know of the delinquency. Current law permits but does not require a taxing unit to waive interest under these circumstances. The bill's requirement that a taxing unit waive the interest on delinquent property taxes in certain limited circumstances would create a cost to the taxing units making the waiver but the cost is not expected to be significant. Delinquent property tax interest is not included in the school finance formula, so there would be no cost to the state. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013. Local Government Impact The bill's requirement that a taxing unit waive the interest on delinquent property taxes in certain limited circumstances would create a cost to local taxing units making the waiver but the cost is not expected to be significant. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 19, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2343 by Zedler (Relating to the waiver of penalties and interest on taxes unpaid due to an act or omission of an agent of a governmental entity.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2343 by Zedler (Relating to the waiver of penalties and interest on taxes unpaid due to an act or omission of an agent of a governmental entity.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2343 by Zedler (Relating to the waiver of penalties and interest on taxes unpaid due to an act or omission of an agent of a governmental entity.), As Introduced
HB2343 by Zedler (Relating to the waiver of penalties and interest on taxes unpaid due to an act or omission of an agent of a governmental entity.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Section 33.011, of the Tax Code, related to waiver of penalties and interest, to require a taxing unit to waive interest on a delinquent tax if an act or omission of an officer, employee, or agent of a taxing unit, appraisal district, or other political subdivision or governmental entity caused the taxpayer's failure to pay the tax before delinquency and if the tax is paid not later than the 21st day after the date the taxpayer knows or should know of the delinquency. Current law permits but does not require a taxing unit to waive interest under these circumstances. The bill's requirement that a taxing unit waive the interest on delinquent property taxes in certain limited circumstances would create a cost to the taxing units making the waiver but the cost is not expected to be significant. Delinquent property tax interest is not included in the school finance formula, so there would be no cost to the state. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013.
Local Government Impact
The bill's requirement that a taxing unit waive the interest on delinquent property taxes in certain limited circumstances would create a cost to local taxing units making the waiver but the cost is not expected to be significant.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS