LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 20, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB286 by Canales (Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Tax Code Section 33.07, regarding property tax delinquency and additional penalties for collection costs, to establish limits on the amount of an additional delinquent tax collection penalty on a disabled veteran's residence homestead if the taxing unit has contracted with an attorney to represent the taxing unit. The bill would amend Tax Code Sections 33.08 and 33.11 similarly. The additional penalty would be limited to the lesser of the current additional penalty or 6 percent of the amount of the delinquent taxes if the taxes remain unpaid on July 1st of the year the delinquent taxes are due, 15 percent if unpaid on July 1st of the first year after the year in which the delinquent taxes are due, and 20 percent if unpaid on July 1st of the second year after the year in which the delinquent taxes are due. Under current law, the additional penalty is limited only to the amount of compensation specified in the attorney's delinquent tax collection contract.The bill would not affect taxable property values, tax rates, collection rates, or any other variable which might affect the revenues of units of local governments or the state.The bill would take effect immediately upon enactment, assuming the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect September 1, 2015. The bill would apply only to an additional penalty on taxes that become delinquent on or after the bill's effective date. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 20, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB286 by Canales (Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB286 by Canales (Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.), As Introduced
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB286 by Canales (Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.), As Introduced
HB286 by Canales (Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Tax Code Section 33.07, regarding property tax delinquency and additional penalties for collection costs, to establish limits on the amount of an additional delinquent tax collection penalty on a disabled veteran's residence homestead if the taxing unit has contracted with an attorney to represent the taxing unit. The bill would amend Tax Code Sections 33.08 and 33.11 similarly. The additional penalty would be limited to the lesser of the current additional penalty or 6 percent of the amount of the delinquent taxes if the taxes remain unpaid on July 1st of the year the delinquent taxes are due, 15 percent if unpaid on July 1st of the first year after the year in which the delinquent taxes are due, and 20 percent if unpaid on July 1st of the second year after the year in which the delinquent taxes are due. Under current law, the additional penalty is limited only to the amount of compensation specified in the attorney's delinquent tax collection contract.The bill would not affect taxable property values, tax rates, collection rates, or any other variable which might affect the revenues of units of local governments or the state.The bill would take effect immediately upon enactment, assuming the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect September 1, 2015. The bill would apply only to an additional penalty on taxes that become delinquent on or after the bill's effective date.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS