87R11636 RDS-D
By: Muñoz, Jr. H.B. No. 3824
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the penalty imposed on a delinquent
ad valorem tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 33.01(a) and (b), Tax Code, are amended
to read as follows:
(a) A delinquent tax incurs a penalty of six percent of the
amount of the tax for the first calendar month it is delinquent plus
one percent for each additional month or portion of a month the tax
remains unpaid prior to April [July] 1 of the year in which it
becomes delinquent. However, a tax delinquent on April [July] 1
incurs a total penalty of eight [twelve] percent of the amount of
the delinquent tax without regard to the number of months the tax
has been delinquent. A delinquent tax continues to incur the
penalty provided by this subsection as long as the tax remains
unpaid, regardless of whether a judgment for the delinquent tax has
been rendered.
(b) If a person who exercises the split-payment option
provided by Section 31.03 [of this code] fails to make the second
payment before July 1, the second payment is delinquent and incurs a
penalty of eight [twelve] percent of the amount of unpaid tax.
SECTION 2. The change in law made by this Act applies only
to the penalty for failure to pay a tax that becomes delinquent on
or after the effective date of this Act. The penalty for failure to
pay a tax that became delinquent before the effective date of this
Act is governed by the law in effect when the tax became delinquent,
and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2021.