| 1 | 1 | | 84R11174 DDT-D |
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| 2 | 2 | | By: Hinojosa S.B. No. 1957 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the payment of property taxes through the use of |
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| 8 | 8 | | property tax loans or other means. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 351.0021, Finance Code, is amended by |
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| 11 | 11 | | adding Subsection (c-1) to read as follows: |
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| 12 | 12 | | (c-1) A property tax lender may not charge a property owner |
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| 13 | 13 | | discount points in connection with a property tax loan. |
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| 14 | 14 | | SECTION 2. Subchapter A, Chapter 351, Finance Code, is |
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| 15 | 15 | | amended by adding Section 351.0024 to read as follows: |
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| 16 | 16 | | Sec. 351.0024. INTEREST-ONLY PAYMENTS PROHIBITED FOR |
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| 17 | 17 | | CERTAIN LOANS. A property tax loan secured by the property owner's |
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| 18 | 18 | | residence homestead, as defined by Section 11.13(j), Tax Code, may |
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| 19 | 19 | | not have a scheduled or optional interest-only loan payment for any |
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| 20 | 20 | | month. |
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| 21 | 21 | | SECTION 3. Section 31.031(a), Tax Code, as amended by |
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| 22 | 22 | | Chapters 122 (H.B. 97), 643 (H.B. 709), and 935 (H.B. 1597), Acts of |
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| 23 | 23 | | the 83rd Legislature, Regular Session, 2013, is reenacted and |
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| 24 | 24 | | amended to read as follows: |
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| 25 | 25 | | (a) This section applies only to[: |
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| 26 | 26 | | [(1)] an individual who is[: |
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| 27 | 27 | | [(A) disabled or at least 65 years of age; and |
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| 28 | 28 | | [(B)] qualified for an exemption under Section |
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| 29 | 29 | | 11.13, [11.13(c); or |
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| 30 | 30 | | [(2) an individual who is: |
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| 31 | 31 | | [(A) a disabled veteran or the unmarried |
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| 32 | 32 | | surviving spouse of a disabled veteran; and |
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| 33 | 33 | | [(B) qualified for an exemption under Section] |
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| 34 | 34 | | 11.132, or 11.22. |
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| 35 | 35 | | SECTION 4. Section 32.06(a-2), Tax Code, is amended to read |
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| 36 | 36 | | as follows: |
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| 37 | 37 | | (a-2) Except as provided by Subsection (a-8), a tax lien may |
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| 38 | 38 | | be transferred to the person who pays the taxes on behalf of the |
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| 39 | 39 | | property owner under the authorization described by Subsection |
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| 40 | 40 | | (a-1) for: |
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| 41 | 41 | | (1) taxes that are delinquent at the time of payment; |
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| 42 | 42 | | or |
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| 43 | 43 | | (2) taxes that are due but not delinquent at the time |
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| 44 | 44 | | of payment [if the property is not subject to a recorded mortgage |
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| 45 | 45 | | lien]. |
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| 46 | 46 | | SECTION 5. Section 351.0021, Finance Code, as amended by |
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| 47 | 47 | | this Act, and Section 351.0024, Finance Code, as added by this Act, |
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| 48 | 48 | | apply only to a contract for a property tax loan entered into on or |
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| 49 | 49 | | after the effective date of this Act. A contract for a property tax |
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| 50 | 50 | | loan entered into before the effective date of this Act is governed |
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| 51 | 51 | | by the law in effect on the date the contract was entered into, and |
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| 52 | 52 | | the former law is continued in effect for that purpose. |
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| 53 | 53 | | SECTION 6. The changes in law made by this Act to Sections |
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| 54 | 54 | | 31.031 and 32.06, Tax Code, apply only to the payment of ad valorem |
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| 55 | 55 | | taxes that become due on or after the effective date of this Act. |
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| 56 | 56 | | The payment of ad valorem taxes that become due before the effective |
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| 57 | 57 | | date of this Act is governed by the law as it existed immediately |
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| 58 | 58 | | before the effective date of this Act, and that law is continued in |
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| 59 | 59 | | effect for that purpose. |
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| 60 | 60 | | SECTION 7. This Act takes effect September 1, 2015. |
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