By: Hinojosa S.B. No. 476
(In the Senate - Filed February 11, 2013; February 13, 2013,
read first time and referred to Committee on Intergovernmental
Relations; March 25, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
March 25, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 476 By: Hinojosa
A BILL TO BE ENTITLED
AN ACT
relating to installment agreements for the payment of delinquent ad
valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.02, Tax Code, is amended by amending
Subsections (a) and (b) and adding Subsection (b-1) to read as
follows:
(a) The collector for a taxing unit may enter into an
agreement with a person delinquent in the payment of the tax for
payment of the tax, penalties, and interest in installments. The
collector for a taxing unit shall, on request by a person delinquent
in the payment of the tax on a residence homestead, 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 under
this section in the preceding 24 months. An installment [The]
agreement under this section:
(1) must be in writing;
(2) must provide for payments to be made in equal
monthly installments;
(3) must extend for a period of at least 12 months; and
(4) may not extend for a period of more than 36 months.
(b) Except as provided by Subsection (b-1), interest
[Interest] and a penalty accrue as provided by Sections 33.01(a)
and (c) [Subsections (a) and (c) of Section 33.01] on the unpaid
balance during the period of the agreement.
(b-1) A penalty does not accrue as provided by Section
33.01(a) on the unpaid balance during the period of the agreement if
the property that is the subject of the agreement is a residence
homestead.
SECTION 2. Section 33.04, Tax Code, is amended to read as
follows:
Sec. 33.04. NOTICE OF DELINQUENCY. (a) At least once each
year the collector for a taxing unit shall deliver a notice of
delinquency to each person whose name appears on the current
delinquent tax roll. However, the notice need not be delivered if:
(1) a bill for the tax was not mailed under Section
31.01(f); or
(2) the collector does not know and by exercising
reasonable diligence cannot determine the delinquent taxpayer's
name and address.
(b) A notice of delinquency must contain the following
statement in capital letters: "IF THE PROPERTY DESCRIBED IN THIS
DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE (NAME
OF TAXING UNIT) REGARDING A RIGHT YOU MAY HAVE TO ENTER INTO AN
INSTALLMENT AGREEMENT DIRECTLY WITH THE (NAME OF TAXING UNIT) FOR
THE PAYMENT OF THESE TAXES."
(c) The collector for a taxing unit must deliver a notice of
delinquency to a person who is in breach of an installment agreement
under Section 33.02 and to any other owner of an interest in the
property subject to the agreement whose name appears on the
delinquent tax roll before the collector may seize and sell the
property or file a suit to collect a delinquent tax subject to the
agreement.
SECTION 3. Chapter 51, Property Code, is amended by adding
Section 51.0011 to read as follows:
Sec. 51.0011. DEFAULT ARISING FROM DELINQUENT AD VALOREM
TAXES: INSTALLMENT AGREEMENTS. (a) Notwithstanding any
agreement to the contrary, a debtor is not in default under a deed
of trust or other contract lien on real property used as the
debtor's residence for the delinquent payment of ad valorem taxes
if:
(1) the debtor gave notice to the mortgage servicer of
the intent to enter into an installment agreement with the taxing
unit under Section 33.02, Tax Code, for the payment of the taxes at
least 10 days before the date the debtor entered into the agreement;
and
(2) the property is protected from seizure and sale
and a suit may not be filed to collect a delinquent tax on the
property as provided by Section 33.02(d), Tax Code.
(b) A mortgage servicer who receives a notice described by
Subsection (a)(1) may pay the taxes subject to the installment
agreement at any time.
(c) A mortgage servicer who receives a notice described by
Subsection (a)(1) and gives the debtor notice that the mortgage
servicer intends to accelerate the note securing the deed of trust
or other contract lien as a result of the delinquency of the taxes
that are subject to the installment agreement must rescind the
notice if the debtor enters into the agreement not later than the
30th day after the date the debtor delivers the notice.
SECTION 4. (a) The change in law made by this Act to
Section 33.02, Tax Code, applies only to an installment agreement
for the payment of delinquent ad valorem taxes entered into on or
after the effective date of this Act. An installment agreement for
the payment of delinquent ad valorem taxes entered into before the
effective date of this Act is governed by the law in effect on the
date the agreement was entered into, and the former law is continued
in effect for that purpose.
(b) The change in law made by this Act to Section 33.04, Tax
Code, applies only to a notice of delinquency delivered on or after
the effective date of this Act. A notice of delinquency delivered
before the effective date of this Act is governed by the law in
effect on the date the notice was delivered, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2013.
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