Relating to the accrual of penalties and interest under the Property Tax Code.
Impact
The modifications proposed in HB3346 are expected to have a significant impact on property owners and taxing authorities across Texas. By adjusting the interest calculations and clarifying the terms under which penalties accrue, the bill encourages compliance with tax obligations. It may also reduce disputes over interest rates applied to delinquent taxes, providing clearer guidelines for both property owners and taxing units. Furthermore, the measure addresses certain scenarios where property taxes might be reassessed, affecting both agricultural and other property types subject to exemption claims. This could lead to increased revenue certainty for local governments while providing property owners with a clearer understanding of their financial responsibilities.
Summary
House Bill 3346 addresses modifications to the accrual of penalties and interest under the Texas Property Tax Code. Specifically, the bill establishes a new annual interest rate that is the lower of 12 percent or the sum of two percent and the prime rate published by the Federal Reserve. This change aims to create a more standardized approach to how interest on unpaid property taxes is calculated and incentivizes timely payment by property owners. Under the new regulations, the tax code is amended to ensure better clarity on how penalties and taxes are assessed, particularly for specific situations such as property exemptions and changes in land use.
Contention
While the intent of HB3346 is to streamline property tax administration, there may be concerns about the implications for property owners, particularly those who may struggle with higher interest rates or penalties in the case of delayed tax payments. Critics may argue that raising the cap on interest rates could exacerbate financial burdens during economic downturns. Additionally, the removal of a longer history of lower interest for certain properties that change in use could lead to controversies in how such properties are taxed. Balancing the interests of taxpayers with the financial needs of local governments will likely be a point of contention as discussions around the bill progress.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to interests in real property held or acquired by or on behalf of certain foreign individuals or entities and the authority of the attorney general to acquire the property by eminent domain; establishing the homeland security review committee; creating a criminal offense.
Relating to interests in real property held or acquired by or on behalf of certain foreign individuals or entities and the authority of the attorney general to acquire the property by eminent domain; establishing the homeland security review committee; creating a criminal offense.
Relating to the purchase or acquisition of an interest in real property by certain aliens or foreign entities; creating a criminal offense; providing a civil penalty.
Relating to the holding or acquisition of an interest in real property by or on behalf of certain foreign individuals or entities; establishing an agricultural intelligence office; creating a criminal offense.