LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 25, 2021 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1446 by Gutierrez (Relating to the collection of delinquent property taxes.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 6 of the Tax Code, regarding local property tax administration, to reduce compensation for an attorney that represents a taxing unit to enforce the collection of delinquent taxes to not exceed 15 percent of the delinquent tax, penalty, and interest collected.Reducing the maximum amount of compensation a taxing unit is allowed to contract with an attorney or law firm to collect delinquent taxes for the taxing unit could be a gain to units of local government depending if they contract for these services and if the current contract is more than 15 percent. The maximum amount under current law is 20 percent of the amount of the delinquent tax, penalty, and interest collected. The number of contracts this would apply is unknown but is not likely to have a significant impact. This bill would have no fiscal impact on the state. Units of local government could incur a slight gain, but not expected to be significant.The bill would take effect January 1, 2022. Local Government ImpactUnits of local government could incur a slight gain if they contract for these services and if the current contract is more than 15 percent. The number of contracts this would apply is unknown but is not likely to have a significant impact. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, AF, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 25, 2021
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1446 by Gutierrez (Relating to the collection of delinquent property taxes.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1446 by Gutierrez (Relating to the collection of delinquent property taxes.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1446 by Gutierrez (Relating to the collection of delinquent property taxes.), As Introduced
SB1446 by Gutierrez (Relating to the collection of delinquent property taxes.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 6 of the Tax Code, regarding local property tax administration, to reduce compensation for an attorney that represents a taxing unit to enforce the collection of delinquent taxes to not exceed 15 percent of the delinquent tax, penalty, and interest collected.Reducing the maximum amount of compensation a taxing unit is allowed to contract with an attorney or law firm to collect delinquent taxes for the taxing unit could be a gain to units of local government depending if they contract for these services and if the current contract is more than 15 percent. The maximum amount under current law is 20 percent of the amount of the delinquent tax, penalty, and interest collected. The number of contracts this would apply is unknown but is not likely to have a significant impact. This bill would have no fiscal impact on the state. Units of local government could incur a slight gain, but not expected to be significant.The bill would take effect January 1, 2022.
This bill would have no fiscal impact on the state. Units of local government could incur a slight gain, but not expected to be significant.
The bill would take effect January 1, 2022.
Local Government Impact
Units of local government could incur a slight gain if they contract for these services and if the current contract is more than 15 percent. The number of contracts this would apply is unknown but is not likely to have a significant impact.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, AF, SD, BRI
JMc, AF, SD, BRI