86R9517 JES-D
By: Creighton S.B. No. 2323
A BILL TO BE ENTITLED
AN ACT
relating to the payment in installments of ad valorem taxes by
members or veterans of the United States armed forces.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 31, Tax Code, is amended by adding
Section 31.033 to read as follows:
Sec. 31.033. INSTALLMENT PAYMENTS OF TAXES BY MEMBERS OR
VETERANS OF THE UNITED STATES ARMED FORCES. (a) This section
applies only to taxes imposed by a taxing unit in a tax year on:
(1) real property that is:
(A) the residence homestead for the tax year of a
veteran or active duty service member or consists of property owned
by a veteran or active duty service member that is used for
residential purposes and that has fewer than five living units; or
(B) owned or leased by a business entity that on
the due date for the taxes is owned by a veteran or active duty
service member and that had not more in gross receipts in the
entity's most recent federal tax year or state franchise tax annual
period, according to the applicable federal income tax return or
state franchise tax report of the entity than the limit on gross
receipts calculated for the current tax year under Section
31.032(h); and
(2) tangible personal property that on the due date
for the taxes is owned or leased by a business entity described by
Subdivision (1)(B).
(b) A veteran or active duty service member may pay a taxing
unit's taxes imposed on property that the veteran or active duty
service member owns in eight equal installments without penalty or
interest if the first installment is paid before the first day of
the first month that begins after the delinquency date and is
accompanied by notice to the taxing unit that the veteran or active
duty service member will pay the remaining taxes in seven equal
installments.
(c) If the delinquency date is February 1, the second
installment must be paid before May 1, the third installment must be
paid before August 1, the fourth installment must be paid before
November 1, the fifth installment must be paid before February 1 of
the following year, the sixth installment must be paid before May 1
of that year, the seventh installment must be paid before August 1
of that year, and the eighth installment must be paid before
November 1 of that year.
(d) If the delinquency date is a date other than February 1,
the second installment must be paid before the first day of the
third month after the delinquency date, the third installment must
be paid before the first day of the sixth month after the
delinquency date, the fourth installment must be paid before the
first day of the ninth month after the delinquency date, the fifth
installment must be paid before the first day of the 12th month
after the delinquency date, the sixth installment must be paid
before the first day of the 15th month after the delinquency date,
the seventh installment must be paid before the first day of the
18th month after the delinquency date, and the eighth installment
must be paid before the first day of the 21st month after the
delinquency date.
(e) If the veteran or active duty service member fails to
make a payment before the applicable due date provided by this
section, the unpaid installment is delinquent and incurs a penalty
of six percent and interest as provided by Section 33.01(c).
(f) A veteran or active duty service member may pay more
than the amount due for each installment and the amount in excess of
the amount due shall be credited to the next installment. A veteran
or active duty service member may not pay less than the total amount
due for each installment unless the collector provides for the
acceptance of partial payments under this section. If the collector
accepts a partial payment, penalties and interest are incurred only
by the amount of each installment that remains unpaid on the
applicable due date.
(g) The comptroller shall adopt rules to implement this
section.
(h) In this section:
(1) "Active duty service member" means a person with
full-time duty status in the active uniformed service of the United
States, including members of the National Guard and Reserve on
active duty orders pursuant to 10 U.S.C. Sections 1209 and 1211.
(2) "Veteran" means a person who has served in the
army, navy, air force, coast guard, or marine corps of the United
States or an auxiliary service of one of those branches of the armed
forces.
SECTION 2. This Act applies only to ad valorem taxes for
which the delinquency date is on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2019.