| 1 | 1 | | 88R4779 SHH-F |
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| 2 | 2 | | By: Noble H.B. No. 4686 |
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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 penalty and interest incurred on a delinquent ad |
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| 8 | 8 | | valorem tax imposed on the residence homestead of an individual who |
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| 9 | 9 | | is elderly or disabled. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 31.031(b), Tax Code, is amended to read |
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| 12 | 12 | | as follows: |
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| 13 | 13 | | (b) Except as provided by Section 33.01(g), if [If] the |
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| 14 | 14 | | individual fails to make a payment, including the first payment, |
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| 15 | 15 | | before the applicable date provided by Subsection (a-1), the unpaid |
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| 16 | 16 | | installment is delinquent and incurs a penalty of six percent and |
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| 17 | 17 | | interest as provided by Section 33.01(c). The penalty provided by |
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| 18 | 18 | | Section 33.01(a) does not apply to the unpaid installment. |
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| 19 | 19 | | SECTION 2. Section 31.032(c), Tax Code, is amended to read |
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| 20 | 20 | | as follows: |
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| 21 | 21 | | (c) Except as provided by Section 33.01(g), if [If] the |
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| 22 | 22 | | person fails to make a payment before the applicable date provided |
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| 23 | 23 | | by Subsection (b), the unpaid installment is delinquent and incurs |
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| 24 | 24 | | a penalty of six percent and interest as provided by Section |
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| 25 | 25 | | 33.01(c). |
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| 26 | 26 | | SECTION 3. Section 33.01, Tax Code, is amended by adding |
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| 27 | 27 | | Subsection (g) to read as follows: |
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| 28 | 28 | | (g) Notwithstanding the other provisions of this section, a |
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| 29 | 29 | | delinquent tax on property that qualifies as the owner's residence |
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| 30 | 30 | | homestead under Section 11.13(c) or (d), including a delinquent |
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| 31 | 31 | | partial payment of taxes under Section 31.03, 31.031, or 31.032: |
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| 32 | 32 | | (1) accrues interest at the rate: |
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| 33 | 33 | | (A) prescribed by Section 33.06(d) until the |
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| 34 | 34 | | 181st day after the date the tax becomes delinquent; and |
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| 35 | 35 | | (B) as prescribed by other law applicable to the |
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| 36 | 36 | | delinquency beginning on that 181st day; |
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| 37 | 37 | | (2) does not incur a penalty until the 181st day after |
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| 38 | 38 | | the date the tax becomes delinquent; and |
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| 39 | 39 | | (3) except as provided by Section 31.031(b), incurs a |
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| 40 | 40 | | penalty as prescribed by other law applicable to the delinquency on |
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| 41 | 41 | | the 181st day after the date the tax becomes delinquent. |
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| 42 | 42 | | SECTION 4. Section 33.04, Tax Code, is amended by adding |
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| 43 | 43 | | Subsection (d) to read as follows: |
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| 44 | 44 | | (d) The collector for a taxing unit shall send an additional |
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| 45 | 45 | | notice to a person whose name appears on the current delinquent tax |
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| 46 | 46 | | roll and who qualifies the property subject to a delinquency notice |
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| 47 | 47 | | required by Subsection (a) as the person's residence homestead |
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| 48 | 48 | | under Section 11.13(c) or (d). The collector must send the |
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| 49 | 49 | | additional notice not later than the 30th day after the date the |
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| 50 | 50 | | notice of delinquency required by Subsection (a) is delivered to |
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| 51 | 51 | | the person. The additional notice must include in 14-point |
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| 52 | 52 | | boldfaced type or 14-point uppercase letters, a statement that |
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| 53 | 53 | | reads substantially as follows: "THE TAXES ON THIS PROPERTY ARE |
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| 54 | 54 | | DELINQUENT. THE INTEREST AND PENALTY IMPOSED ON THE DELINQUENT |
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| 55 | 55 | | TAXES WILL IN MOST CASES INCREASE ON (DATE THAT IS THE 181ST DATE |
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| 56 | 56 | | AFTER THE DELINQUENCY DATE). IF THE PROPERTY DESCRIBED IN THIS |
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| 57 | 57 | | DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE TAX |
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| 58 | 58 | | COLLECTOR FOR (NAME OF TAXING UNIT) REGARDING A RIGHT YOU MAY HAVE |
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| 59 | 59 | | TO ENTER INTO AN INSTALLMENT AGREEMENT DIRECTLY WITH THE TAX |
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| 60 | 60 | | COLLECTOR FOR (NAME OF TAXING UNIT) FOR THE PAYMENT OF THESE TAXES. |
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| 61 | 61 | | IF YOU HAVE THE RIGHT TO DEFER YOUR TAXES, YOU SHOULD CONTACT THE |
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| 62 | 62 | | (NAME OF APPRAISAL DISTRICT) FOR AN APPLICATION." |
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| 63 | 63 | | SECTION 5. The changes in law made by this Act apply only to |
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| 64 | 64 | | the penalty and interest for failure to pay a tax that becomes |
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| 65 | 65 | | delinquent on or after the effective date of this Act. The penalty |
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| 66 | 66 | | and interest for failure to pay a tax that became delinquent before |
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| 67 | 67 | | the effective date of this Act are governed by the law in effect on |
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| 68 | 68 | | the date the tax became delinquent, and the former law is continued |
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| 69 | 69 | | in effect for that purpose. |
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| 70 | 70 | | SECTION 6. The collector for a taxing unit is required to |
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| 71 | 71 | | send the additional notice required by Section 33.04(d), Tax Code, |
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| 72 | 72 | | as added by this Act, to a person in the 2023 tax year only if the |
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| 73 | 73 | | collector mails a notice of delinquency to the person under Section |
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| 74 | 74 | | 33.04(a), Tax Code, on or after the effective date of this Act. |
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| 75 | 75 | | SECTION 7. This Act takes effect September 1, 2023. |
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