Texas 2021 - 87th Regular

Texas House Bill HB991 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R2687 SMT-F
2	2	By: Shine H.B. No. 991
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of the owner of a residence homestead to
8	8	receive a discount for making an early payment of the ad valorem
9	9	taxes on the homestead.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 31.01(c), Tax Code, is amended to read as
12	12	follows:
13	13	(c) The tax bill or a separate statement accompanying the
14	14	tax bill shall:
15	15	(1) identify the property subject to the tax;
16	16	(2) state the appraised value, assessed value, and
17	17	taxable value of the property;
18	18	(3) if the property is land appraised as provided by
19	19	Subchapter C, D, E, or H, Chapter 23, state the market value and the
20	20	taxable value for purposes of deferred or additional taxation as
21	21	provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
22	22	(4) state the assessment ratio for the taxing unit;
23	23	(5) state the type and amount of any partial exemption
24	24	applicable to the property, indicating whether it applies to
25	25	appraised or assessed value;
26	26	(6) state the total tax rate for the taxing unit;
27	27	(7) state the amount of tax due, the due date, and the
28	28	delinquency date;
29	29	(8) explain the payment option and discounts provided
30	30	by Sections 31.03 and 31.05, if available to the taxing unit's
31	31	taxpayers, and state the date on which each of the discount periods
32	32	provided by Section 31.05 concludes, if the discounts are
33	33	available;
34	34	(8-a) if the property is the owner's residence
35	35	homestead, explain the discounts provided by Section 31.055 and
36	36	state the date on which each of the discount periods provided by
37	37	that section concludes;
38	38	(9) state the rates of penalty and interest imposed
39	39	for delinquent payment of the tax;
40	40	(10) include the name and telephone number of the
41	41	assessor for the taxing unit and, if different, of the collector for
42	42	the taxing unit;
43	43	(11) for real property, state for the current tax year
44	44	and each of the preceding five tax years:
45	45	(A) the appraised value and taxable value of the
46	46	property;
47	47	(B) the total tax rate for the taxing unit;
48	48	(C) the amount of taxes imposed on the property
49	49	by the taxing unit; and
50	50	(D) the difference, expressed as a percent
51	51	increase or decrease, as applicable, in the amount of taxes imposed
52	52	on the property by the taxing unit compared to the amount imposed
53	53	for the preceding tax year; and
54	54	(12) for real property, state the differences,
55	55	expressed as a percent increase or decrease, as applicable, in the
56	56	following for the current tax year as compared to the fifth tax year
57	57	before that tax year:
58	58	(A) the appraised value and taxable value of the
59	59	property;
60	60	(B) the total tax rate for the taxing unit; and
61	61	(C) the amount of taxes imposed on the property
62	62	by the taxing unit.
63	63	SECTION 2. Sections 31.04(a), (c), and (d), Tax Code, are
64	64	amended to read as follows:
65	65	(a) Except as provided by Subsection (d), if [If] a tax bill
66	66	is mailed after January 10, the delinquency date provided by
67	67	Section 31.02 [of this code] is postponed to the first day of the
68	68	next month that will provide a period of at least 21 days after the
69	69	date of mailing for payment of taxes before the taxes become
70	70	delinquent [unless the taxing unit has adopted the discounts
71	71	provided by Section 31.05(c) of this code, in which case the
72	72	delinquency date is determined by Subsection (d) of this section].
73	73	(c) A payment option provided by Section 31.03 [of this
74	74	code] or a discount [adopted] under Section 31.05(b) or 31.055(b)
75	75	[of this code] does not apply to taxes that are calculated too late
76	76	for it to be available.
77	77	(d) If a taxing unit mails its tax bills after September 30
78	78	and [adopts] the discounts provided by Section 31.05(c) or
79	79	31.055(c) apply to the taxes due [of this code], the delinquency
80	80	date is postponed to the first day of the next month following the
81	81	fourth full calendar month following the date the tax bills were
82	82	mailed.
83	83	SECTION 3. The heading to Section 31.05, Tax Code, is
84	84	amended to read as follows:
85	85	Sec. 31.05. DISCOUNTS FOR EARLY PAYMENT OF TAX ON PROPERTY
86	86	OTHER THAN RESIDENCE HOMESTEAD.
87	87	SECTION 4. Section 31.05(a), Tax Code, is amended to read as
88	88	follows:
89	89	(a) The governing body of a taxing unit may adopt the
90	90	discounts provided by Subsection (b) or Subsection (c), or both, in
91	91	the manner required by law for official action by the body. The
92	92	discounts, if adopted, apply only to taxes on property other than a
93	93	residence homestead and only to that taxing unit's taxes. If a
94	94	taxing unit adopts both discounts under Subsections (b) and (c),
95	95	the discounts adopted under Subsection (b) apply unless the tax
96	96	bills for the taxing unit are mailed after September 30, in which
97	97	case only the discounts under Subsection (c) apply. A taxing unit
98	98	that collects taxes for another taxing unit that adopts the
99	99	discounts may prepare and mail separate tax bills on behalf of the
100	100	adopting taxing unit and may charge an additional fee for preparing
101	101	and mailing the separate tax bills and for collecting the taxes
102	102	imposed by the adopting taxing unit. If under an intergovernmental
103	103	contract a county assessor-collector collects taxes for a taxing
104	104	unit that adopts the discounts, the county assessor-collector may
105	105	terminate the contract if the county has adopted a discount policy
106	106	that is different from the discount policy adopted by the adopting
107	107	taxing unit.
108	108	SECTION 5. Chapter 31, Tax Code, is amended by adding
109	109	Section 31.055 to read as follows:
110	110	Sec. 31.055. DISCOUNT FOR EARLY PAYMENT OF TAX ON RESIDENCE
111	111	HOMESTEAD. (a) A person is entitled to the discounts provided by
112	112	Subsections (b) and (c) on the amount of tax due on real property
113	113	that is the person's residence homestead.
114	114	(b) If a taxing unit mails its tax bills on or before
115	115	September 30, the following discounts apply:
116	116	(1) three percent if the tax is paid in October or
117	117	earlier;
118	118	(2) two percent if the tax is paid in November; and
119	119	(3) one percent if the tax is paid in December.
120	120	(c) If a taxing unit mails its tax bills after September 30,
121	121	the following discounts apply:
122	122	(1) three percent if the tax is paid before or during
123	123	the next full calendar month following the date on which the tax
124	124	bills were mailed;
125	125	(2) two percent if the tax is paid during the second
126	126	full calendar month following the date on which the tax bills were
127	127	mailed; and
128	128	(3) one percent if the tax is paid during the third
129	129	full calendar month following the date on which the tax bills were
130	130	mailed.
131	131	SECTION 6. Section 31.07(c), Tax Code, is amended to read as
132	132	follows:
133	133	(c) A collector may adopt a policy of accepting partial
134	134	payments of property taxes. A payment option provided by Section
135	135	31.03 [of this code] or a discount [adopted] under Section 31.05 or
136	136	31.055 [of this code] does not apply to any portion of a partial
137	137	payment. If a collector accepts a partial payment on a tax bill
138	138	that includes taxes for more than one taxing unit, the collector
139	139	shall allocate the partial payment among all the taxing units
140	140	included in the bill in proportion to the amount of tax included in
141	141	the bill for each taxing unit, unless the collector under
142	142	Subsection (b) has adopted a policy of accepting payments of a
143	143	taxing unit's taxes separate from the taxes of other taxing units
144	144	included in the same bill and the taxpayer directs that the partial
145	145	payment be allocated in specific amounts to one or more specific
146	146	taxing units. Acceptance of a partial payment does not affect the
147	147	date that the tax becomes delinquent, but the penalties and
148	148	interest provided by Section 33.01 [of this code] are incurred only
149	149	by the portion of a tax that remains unpaid on the date the tax
150	150	becomes delinquent.
151	151	SECTION 7. Subchapter B, Chapter 343, Finance Code, is
152	152	amended by adding Section 343.107 to read as follows:
153	153	Sec. 343.107. PAYMENT OF PROPERTY TAXES. (a) In this
154	154	section, "mortgage servicer" has the meaning assigned by Section
155	155	51.0001, Property Code.
156	156	(b) A mortgage servicer who pays property tax on behalf of a
157	157	borrower shall, on the written request of the borrower, pay the
158	158	property tax on a property occupied by the borrower as the
159	159	borrower's residence homestead early enough for the borrower to
160	160	qualify for the three percent discount provided by Section
161	161	31.055(b) or (c), Tax Code, as applicable.
162	162	SECTION 8. The changes in law made by this Act apply only to
163	163	ad valorem taxes imposed for an ad valorem tax year that begins on
164	164	or after the effective date of this Act.
165	165	SECTION 9. Section 343.107, Finance Code, as added by this
166	166	Act, applies only to a mortgage that is issued on or after the
167	167	effective date of this Act.
168	168	SECTION 10. This Act takes effect January 1, 2022.