| 1 | 1 | | 87R857 CJC-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 1423 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the prepayment of ad valorem taxes. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Sections 31.072(a), (c), and (d), Tax Code, are |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (a) At the request of a property owner, the [The] collector |
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| 12 | 12 | | for a taxing unit shall [may] enter a contract with the [a] property |
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| 13 | 13 | | owner under which the property owner deposits money in an escrow |
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| 14 | 14 | | account maintained by the collector to provide for the payment of |
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| 15 | 15 | | property taxes collected by the collector on any property the |
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| 16 | 16 | | person owns. |
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| 17 | 17 | | (c) A contract under this section must allow [require] the |
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| 18 | 18 | | property owner to make [monthly] deposits to the escrow account at |
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| 19 | 19 | | any time until the earlier of the following occurs: |
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| 20 | 20 | | (1) the estimated amount of taxes as provided [set] in |
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| 21 | 21 | | the contract under Subsection (d) [of this section] accrues in the |
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| 22 | 22 | | account; or |
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| 23 | 23 | | (2) [until] the tax bill for the property is |
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| 24 | 24 | | prepared[, whichever occurs earlier]. |
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| 25 | 25 | | (d) On request by a property owner to establish an escrow |
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| 26 | 26 | | account under this section, the collector shall estimate the amount |
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| 27 | 27 | | of taxes to be imposed on the property by the affected taxing units |
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| 28 | 28 | | in that year and include that amount in the contract to establish |
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| 29 | 29 | | the escrow account. The contract must also include an estimate of |
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| 30 | 30 | | the amount of money the property owner would need to deposit to the |
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| 31 | 31 | | escrow account each month in order to [. A contract to establish an |
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| 32 | 32 | | escrow account must provide for deposits that would] provide, as of |
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| 33 | 33 | | the date the collector estimates the tax bill for the property will |
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| 34 | 34 | | be prepared, a total deposit to the escrow account that is not less |
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| 35 | 35 | | than the amount of taxes estimated by the collector or the amount of |
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| 36 | 36 | | taxes imposed on the property by the affected taxing units in the |
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| 37 | 37 | | preceding year, whichever is less. The contract may not require the |
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| 38 | 38 | | property owner to comply with a schedule of deposits or prescribe a |
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| 39 | 39 | | minimum amount that must be deposited to the escrow account. The |
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| 40 | 40 | | collector may agree to a deposit of a greater amount on the property |
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| 41 | 41 | | owner's request. |
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| 42 | 42 | | SECTION 2. Sections 31.072(h) and (i), Tax Code, are |
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| 43 | 43 | | repealed. |
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| 44 | 44 | | SECTION 3. The change in law made by this Act applies only |
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| 45 | 45 | | to a contract under Section 31.072, Tax Code, that is entered into |
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| 46 | 46 | | on or after the effective date of this Act. A contract under |
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| 47 | 47 | | Section 31.072, Tax Code, that is entered into before the effective |
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| 48 | 48 | | date of this Act is governed by the law in effect when the contract |
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| 49 | 49 | | was entered into, and the former law is continued in effect for that |
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| 50 | 50 | | purpose. |
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| 51 | 51 | | SECTION 4. This Act takes effect September 1, 2021. |
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