88R4609 SHH-F
By: Shine H.B. No. 4512
A BILL TO BE ENTITLED
AN ACT
relating to the entitlement of a property owner to receive a
discount for making an early payment of the ad valorem taxes on the
owner's property.
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 Section [Sections] 31.03 [and 31.05,] if available to
the taxing unit's taxpayers;
(8-a) explain the discounts provided by Section
31.05[,] and state the date on which each of the discount periods
provided by that section [Section 31.05] concludes[, if the
discounts are available];
(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(c), (d), and (e), Tax Code, are
amended to read as follows:
(c) The [A] payment option provided by Section 31.03 [of
this code or a discount adopted under Section 31.05(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) 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.
(e) If the delinquency date for a tax is postponed under
Subsection [(a) or] (a-1), that postponed delinquency date is the
date on which penalties and interest begin to be incurred on the tax
as provided by Section 33.01.
SECTION 3. Section 31.05(c), Tax Code, is amended to read as
follows:
(c) A person is entitled to [taxing unit may adopt] the
following discounts on the taxes the person pays to a taxing unit
[to apply when it mails its tax bills after September 30]:
(1) three percent if the tax is paid before or during
the next full calendar month following the date on which the tax
bills are [were] mailed;
(2) two percent if the tax is paid during the second
full calendar month following the date on which the tax bills are
[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 are
[were] mailed.
SECTION 4. Sections 31.07(b), (c), and (d), Tax Code, are
amended to read as follows:
(b) A collector shall accept payment of the tax imposed on a
property by a taxing unit [that has adopted the discounts] under
Section 31.05 [of this code] separately from taxes imposed on that
property by other taxing units using the same collector, even if the
taxes are included in the same bill. The collector may adopt a
policy of accepting separate payments in other circumstances. If
the tax paid is included in the same bill as other taxes that are not
paid, the collector shall send a revised bill or receipt to reflect
the tax payment, if a discount applies to the payment, and may send
a revised bill or receipt to reflect the tax payment in other
circumstances. The sending of a revised bill does not affect the
date on which the unpaid taxes become delinquent.
(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 [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.
(d) Notwithstanding Subsection (c), a collector shall
accept a partial payment of property taxes on a tax bill that
includes taxes for more than one taxing unit if [one or more of the
taxing units has adopted the discounts under Section 31.05 of this
code,] the taxpayer directs that the partial payment be allocated
first as a discounted [to the] payment to [of the taxes owed] one or
more of the taxing units under Section 31.05 [that have adopted the
discounts,] and the amount of the payment is equal to or greater
than the amount of the taxes owed the taxing units designated by the
taxpayer.
SECTION 5. The following provisions of the Tax Code are
repealed:
(1) Section 31.04(a); and
(2) Sections 31.05(a), (b), and (d).
SECTION 6. This Act applies only to the payment of ad
valorem taxes for a tax year that begins on or after the effective
date of this Act.
SECTION 7. This Act takes effect January 1, 2024.