87R2687 SMT-F
By: Shine H.B. No. 991
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the owner of a residence homestead to
receive a discount for making an early payment of the ad valorem
taxes on the homestead.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.01(c), Tax Code, is amended to read as
follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the taxing unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the taxing unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the taxing unit's
taxpayers, and state the date on which each of the discount periods
provided by Section 31.05 concludes, if the discounts are
available;
(8-a) if the property is the owner's residence
homestead, explain the discounts provided by Section 31.055 and
state the date on which each of the discount periods provided by
that section concludes;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the taxing unit and, if different, of the collector for
the taxing unit;
(11) for real property, state for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the taxing unit;
(C) the amount of taxes imposed on the property
by the taxing unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the taxing unit compared to the amount imposed
for the preceding tax year; and
(12) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the taxing unit; and
(C) the amount of taxes imposed on the property
by the taxing unit.
SECTION 2. Sections 31.04(a), (c), and (d), Tax Code, are
amended to read as follows:
(a) Except as provided by Subsection (d), if [If] a tax bill
is mailed after January 10, the delinquency date provided by
Section 31.02 [of this code] is postponed to the first day of the
next month that will provide a period of at least 21 days after the
date of mailing for payment of taxes before the taxes become
delinquent [unless the taxing unit has adopted the discounts
provided by Section 31.05(c) of this code, in which case the
delinquency date is determined by Subsection (d) of this section].
(c) A payment option provided by Section 31.03 [of this
code] or a discount [adopted] under Section 31.05(b) or 31.055(b)
[of this code] does not apply to taxes that are calculated too late
for it to be available.
(d) If a taxing unit mails its tax bills after September 30
and [adopts] the discounts provided by Section 31.05(c) or
31.055(c) apply to the taxes due [of this code], the delinquency
date is postponed to the first day of the next month following the
fourth full calendar month following the date the tax bills were
mailed.
SECTION 3. The heading to Section 31.05, Tax Code, is
amended to read as follows:
Sec. 31.05. DISCOUNTS FOR EARLY PAYMENT OF TAX ON PROPERTY
OTHER THAN RESIDENCE HOMESTEAD.
SECTION 4. Section 31.05(a), Tax Code, is amended to read as
follows:
(a) The governing body of a taxing unit may adopt the
discounts provided by Subsection (b) or Subsection (c), or both, in
the manner required by law for official action by the body. The
discounts, if adopted, apply only to taxes on property other than a
residence homestead and only to that taxing unit's taxes. If a
taxing unit adopts both discounts under Subsections (b) and (c),
the discounts adopted under Subsection (b) apply unless the tax
bills for the taxing unit are mailed after September 30, in which
case only the discounts under Subsection (c) apply. A taxing unit
that collects taxes for another taxing unit that adopts the
discounts may prepare and mail separate tax bills on behalf of the
adopting taxing unit and may charge an additional fee for preparing
and mailing the separate tax bills and for collecting the taxes
imposed by the adopting taxing unit. If under an intergovernmental
contract a county assessor-collector collects taxes for a taxing
unit that adopts the discounts, the county assessor-collector may
terminate the contract if the county has adopted a discount policy
that is different from the discount policy adopted by the adopting
taxing unit.
SECTION 5. Chapter 31, Tax Code, is amended by adding
Section 31.055 to read as follows:
Sec. 31.055. DISCOUNT FOR EARLY PAYMENT OF TAX ON RESIDENCE
HOMESTEAD. (a) A person is entitled to the discounts provided by
Subsections (b) and (c) on the amount of tax due on real property
that is the person's residence homestead.
(b) If a taxing unit mails its tax bills on or before
September 30, the following discounts apply:
(1) three percent if the tax is paid in October or
earlier;
(2) two percent if the tax is paid in November; and
(3) one percent if the tax is paid in December.
(c) If a taxing unit mails its tax bills after September 30,
the following discounts apply:
(1) three percent if the tax is paid before or during
the next full calendar month following the date on which the tax
bills were mailed;
(2) two percent if the tax is paid during the second
full calendar month following the date on which the tax bills were
mailed; and
(3) one percent if the tax is paid during the third
full calendar month following the date on which the tax bills were
mailed.
SECTION 6. Section 31.07(c), Tax Code, is amended to read as
follows:
(c) A collector may adopt a policy of accepting partial
payments of property taxes. A payment option provided by Section
31.03 [of this code] or a discount [adopted] under Section 31.05 or
31.055 [of this code] does not apply to any portion of a partial
payment. If a collector accepts a partial payment on a tax bill
that includes taxes for more than one taxing unit, the collector
shall allocate the partial payment among all the taxing units
included in the bill in proportion to the amount of tax included in
the bill for each taxing unit, unless the collector under
Subsection (b) has adopted a policy of accepting payments of a
taxing unit's taxes separate from the taxes of other taxing units
included in the same bill and the taxpayer directs that the partial
payment be allocated in specific amounts to one or more specific
taxing units. Acceptance of a partial payment does not affect the
date that the tax becomes delinquent, but the penalties and
interest provided by Section 33.01 [of this code] are incurred only
by the portion of a tax that remains unpaid on the date the tax
becomes delinquent.
SECTION 7. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.107 to read as follows:
Sec. 343.107. PAYMENT OF PROPERTY TAXES. (a) In this
section, "mortgage servicer" has the meaning assigned by Section
51.0001, Property Code.
(b) A mortgage servicer who pays property tax on behalf of a
borrower shall, on the written request of the borrower, pay the
property tax on a property occupied by the borrower as the
borrower's residence homestead early enough for the borrower to
qualify for the three percent discount provided by Section
31.055(b) or (c), Tax Code, as applicable.
SECTION 8. The changes in law made by this Act apply only to
ad valorem taxes imposed for an ad valorem tax year that begins on
or after the effective date of this Act.
SECTION 9. Section 343.107, Finance Code, as added by this
Act, applies only to a mortgage that is issued on or after the
effective date of this Act.
SECTION 10. This Act takes effect January 1, 2022.