84R11174 DDT-D
By: Hinojosa S.B. No. 1957
A BILL TO BE ENTITLED
AN ACT
relating to the payment of property taxes through the use of
property tax loans or other means.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.0021, Finance Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) A property tax lender may not charge a property owner
discount points in connection with a property tax loan.
SECTION 2. Subchapter A, Chapter 351, Finance Code, is
amended by adding Section 351.0024 to read as follows:
Sec. 351.0024. INTEREST-ONLY PAYMENTS PROHIBITED FOR
CERTAIN LOANS. A property tax loan secured by the property owner's
residence homestead, as defined by Section 11.13(j), Tax Code, may
not have a scheduled or optional interest-only loan payment for any
month.
SECTION 3. Section 31.031(a), Tax Code, as amended by
Chapters 122 (H.B. 97), 643 (H.B. 709), and 935 (H.B. 1597), Acts of
the 83rd Legislature, Regular Session, 2013, is reenacted and
amended to read as follows:
(a) This section applies only to[:
[(1)] an individual who is[:
[(A) disabled or at least 65 years of age; and
[(B)] qualified for an exemption under Section
11.13, [11.13(c); or
[(2) an individual who is:
[(A) a disabled veteran or the unmarried
surviving spouse of a disabled veteran; and
[(B) qualified for an exemption under Section]
11.132, or 11.22.
SECTION 4. Section 32.06(a-2), Tax Code, is amended to read
as follows:
(a-2) Except as provided by Subsection (a-8), a tax lien may
be transferred to the person who pays the taxes on behalf of the
property owner under the authorization described by Subsection
(a-1) for:
(1) taxes that are delinquent at the time of payment;
or
(2) taxes that are due but not delinquent at the time
of payment [if the property is not subject to a recorded mortgage
lien].
SECTION 5. Section 351.0021, Finance Code, as amended by
this Act, and Section 351.0024, Finance Code, as added by this Act,
apply only to a contract for a property tax loan entered into on or
after the effective date of this Act. A contract for a property tax
loan entered into before the effective date of this Act is governed
by the law in effect on the date the contract was entered into, and
the former law is continued in effect for that purpose.
SECTION 6. The changes in law made by this Act to Sections
31.031 and 32.06, Tax Code, apply only to the payment of ad valorem
taxes that become due on or after the effective date of this Act.
The payment of ad valorem taxes that become due before the effective
date of this Act is governed by the law as it existed immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
SECTION 7. This Act takes effect September 1, 2015.