LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION February 25, 2013 TO: Honorable Juan Hinojosa, Chair, Senate Committee On Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB476 by Hinojosa (Relating to installment agreements for the payment of delinquent ad valorem taxes.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Section 33.02 of the Tax Code, regarding property taxation and delinquency, to require a collector for a taxing unit, on request by a person delinquent in the payment of the tax on a residence homestead, to enter into an agreement with the person for payment of the tax, penalties, and interest in installments if the person has not entered into an installment agreement with the collector for the taxing unit in the preceding 24 months. The installment plan must provide for equal monthly installments over at least a 12 month period. A penalty does not accrue on the unpaid balance during the agreement period if the property is a residence homestead. The bill would amend Section 32.06 of the Tax Code, regarding property taxation, tax liens and personal liability, to provide that not later than the 12th day before the date a homestead owner files with the collector a sworn document and information for a property tax loan, a property tax lender must deliver a notice to the property owner containing a specified statement regarding the taxpayer contacting the taxing unit about the possible right to enter into an installment agreement. The bill would amend Section 33.04 to require a collector to provide notice of this right in the notice of delinquency. The bill would amend Chapter 51 of the Property Code, regarding provisions generally applicable to liens, to provide that a debtor is not in default on real property used as the debtor's residence if the debtor is in substantial compliance with an installment agreement with a taxing unit and has given notice of the agreement to the mortgage servicer. The bill would take effect on September 1, 2013. Local Government Impact The bill's proposed notification requirements and forgiveness of delinquent tax penalties for homestead owners who have agreed to the installment plan would result in some costs for units of local government. The bill's proposed installment payment plan could, on the other hand, make it feasible for some homestead owners to pay property taxes that they would otherwise be unable to pay. The net fiscal impact would not be significant. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KKR, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
February 25, 2013
TO: Honorable Juan Hinojosa, Chair, Senate Committee On Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB476 by Hinojosa (Relating to installment agreements for the payment of delinquent ad valorem taxes.), As Introduced
TO: Honorable Juan Hinojosa, Chair, Senate Committee On Intergovernmental Relations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB476 by Hinojosa (Relating to installment agreements for the payment of delinquent ad valorem taxes.), As Introduced
Honorable Juan Hinojosa, Chair, Senate Committee On Intergovernmental Relations
Honorable Juan Hinojosa, Chair, Senate Committee On Intergovernmental Relations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB476 by Hinojosa (Relating to installment agreements for the payment of delinquent ad valorem taxes.), As Introduced
SB476 by Hinojosa (Relating to installment agreements for the payment of delinquent ad valorem taxes.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Section 33.02 of the Tax Code, regarding property taxation and delinquency, to require a collector for a taxing unit, on request by a person delinquent in the payment of the tax on a residence homestead, to enter into an agreement with the person for payment of the tax, penalties, and interest in installments if the person has not entered into an installment agreement with the collector for the taxing unit in the preceding 24 months. The installment plan must provide for equal monthly installments over at least a 12 month period. A penalty does not accrue on the unpaid balance during the agreement period if the property is a residence homestead. The bill would amend Section 32.06 of the Tax Code, regarding property taxation, tax liens and personal liability, to provide that not later than the 12th day before the date a homestead owner files with the collector a sworn document and information for a property tax loan, a property tax lender must deliver a notice to the property owner containing a specified statement regarding the taxpayer contacting the taxing unit about the possible right to enter into an installment agreement. The bill would amend Section 33.04 to require a collector to provide notice of this right in the notice of delinquency. The bill would amend Chapter 51 of the Property Code, regarding provisions generally applicable to liens, to provide that a debtor is not in default on real property used as the debtor's residence if the debtor is in substantial compliance with an installment agreement with a taxing unit and has given notice of the agreement to the mortgage servicer. The bill would take effect on September 1, 2013.
Local Government Impact
The bill's proposed notification requirements and forgiveness of delinquent tax penalties for homestead owners who have agreed to the installment plan would result in some costs for units of local government. The bill's proposed installment payment plan could, on the other hand, make it feasible for some homestead owners to pay property taxes that they would otherwise be unable to pay. The net fiscal impact would not be significant.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KKR, SD, SJS
UP, KKR, SD, SJS