88R3211 DRS-F
By: Shine H.B. No. 1608
A BILL TO BE ENTITLED
AN ACT
relating to the electronic payment of ad valorem taxes; authorizing
a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.06, Tax Code, is amended by amending
Subsections (a) and (c) and adding Subsection (a-1) to read as
follows:
(a) In this section, "electronic payment" has the meaning
assigned by Section 31.062.
(a-1) Except as provided by Section 31.061, taxes are
payable only as provided by this section. Except as provided by
Subsection (e), a collector shall accept United States currency or
a check or money order in payment of taxes and shall accept an
electronic payment of taxes made in the manner provided by Section
31.062 [payment by credit card or electronic funds transfer].
(c) If a tax is paid by an electronic payment [credit card],
the collector may collect a fee for processing the payment. The
collector shall set the fee in an amount that is reasonably related
to the expense incurred by the collector or taxing unit in
processing the payment [by credit card], not to exceed five percent
of the amount of taxes and any penalties or interest being paid.
The fee is in addition to the amount of taxes, penalties, or
interest.
SECTION 2. Chapter 31, Tax Code, is amended by adding
Section 31.062 to read as follows:
Sec. 31.062. ELECTRONIC TAX PAYMENTS. (a) In this section,
"electronic payment" means a payment made by credit card, debit
card, electronic check, electronic funds transfer, wire transfer,
or automated clearinghouse withdrawal.
(b) Notwithstanding any other provision of this title, a
collector shall accept an electronic payment of taxes from a
property owner or a person designated by a property owner under
Section 1.111(f) if the property owner or person elects to make
electronic payments under Subsection (c) of this section.
(c) A collector shall establish a procedure that allows a
property owner or a person designated by a property owner under
Section 1.111(f) to make the election described by Subsection (b)
of this section. The procedure must specify the manner by which the
property owner or the person designated by the owner will make
electronic payments of taxes and the method that will be used to
confirm the receipt by the collector of an electronic payment.
(d) An election under Subsection (c) of this section by a
property owner or a person designated by a property owner under
Section 1.111(f) remains in effect until rescinded in writing by
the property owner or person designated by the owner.
(e) A collector may require a property owner or a person
designated by a property owner under Section 1.111(f) who elects to
make electronic payments of taxes to provide:
(1) an e-mail address;
(2) a financial account number; and
(3) any other information the collector determines is
necessary to properly receive, process, and confirm the receipt of
an electronic payment made by the property owner or the person
designated by the owner.
(f) A collector shall prominently display the information
necessary to make an electronic payment of taxes to the collector on
the collector's Internet website if the collector maintains an
Internet website.
(g) An electronic payment of taxes by a property owner or a
person designated by a property owner under Section 1.111(f) to a
collector is timely if the payment is:
(1) addressed to the correct delivery portal or
electronic delivery system; and
(2) sent or uploaded on or before the date on which the
payment is due.
(h) A collector shall notify a property owner or a person
designated by a property owner under Section 1.111(f) who elects to
make electronic payments of taxes under this section and who has not
rescinded the election of a change in the procedure for making an
electronic payment to the collector, including a change relating to
the collector's e-mail address or the collector's routing or
account number to which a payment must be made, not later than the
earlier of:
(1) the 45th day after the date the change is made; or
(2) the 60th day before the date the taxes are due.
(i) If a collector fails to provide timely notice of a
change in procedure under Subsection (h) of this section to a
property owner or a person designated by a property owner under
Section 1.111(f), an electronic payment of taxes made to the
collector by the property owner or person designated by the owner is
considered to be timely delivered until the notice is received.
(j) An electronic signature that is included on or with an
electronic payment of taxes made under this section is considered
to be a digital signature for purposes of Section 2054.060,
Government Code, and that section applies to the electronic
signature.
(k) A collector shall immediately confirm the receipt of an
electronic payment of taxes made to the collector by a property
owner or a person designated by a property owner under Section
1.111(f).
(l) The comptroller shall adopt rules for the
implementation of this section.
SECTION 3. Section 33.011(h), Tax Code, is amended to read
as follows:
(h) The governing body of a taxing unit shall waive
penalties and interest on a delinquent tax if:
(1) the taxpayer has elected to make electronic
payments of taxes under Section 31.062 [tax is payable by
electronic funds transfer under an agreement entered into under
Section 31.06(a)]; and
(2) the taxpayer submits evidence sufficient to show
that:
(A) the taxpayer attempted to pay the tax by
electronic payment [funds transfer] in the proper manner before the
delinquency date;
(B) the taxpayer's failure to pay the tax before
the delinquency date was caused by an error in the transmission of
the payment [funds]; and
(C) the tax was properly paid by electronic
payment [funds transfer] or otherwise not later than the 21st day
after the date the taxpayer knew or should have known of the
delinquency.
SECTION 4. The changes in law made by this Act apply only to
a tax year that begins on or after the effective date of this Act.
SECTION 5. (a) The officer or employee responsible for
collecting property taxes for a taxing unit located wholly or
primarily in a county with a population of 120,000 or more shall
comply with Section 31.062, Tax Code, as added by this Act,
beginning with the 2024 tax year.
(b) The officer or employee responsible for collecting
property taxes for a taxing unit located wholly or primarily in a
county with a population of less than 120,000 shall comply with
Section 31.062, Tax Code, as added by this Act, beginning with the
2025 tax year.
SECTION 6. This Act takes effect January 1, 2024.