88R4611 SHH-F
By: Shine H.B. No. 4890
A BILL TO BE ENTITLED
AN ACT
relating to installment payments of ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 31.031, Tax Code, is
amended to read as follows:
Sec. 31.031. INSTALLMENT PAYMENTS OF [CERTAIN HOMESTEAD]
TAXES ON HOMESTEADS.
SECTION 2. Section 31.031(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) an individual who is [:
[(A) disabled or at least 65 years of age; and
[(B)] qualified for an exemption under Section
11.13 [11.13(c)]; or
(2) an individual who is:
(A) a disabled veteran or the unmarried surviving
spouse of a disabled veteran; and
(B) qualified for an exemption under Section
[11.132 or] 11.22.
SECTION 3. Chapter 31, Tax Code, is amended by adding
Section 31.0315 to read as follows:
Sec. 31.0315. INSTALLMENT PAYMENTS OF TAXES ON CERTAIN
BUSINESS PROPERTY. (a) This section applies only to:
(1) real property that is owned or leased by a business
entity that had not more than the amount calculated as provided by
Subsection (f) in gross receipts in the entity's most recent
federal tax year or state franchise tax annual period, according to
the applicable federal income tax return or state franchise tax
report of the entity; and
(2) tangible personal property that is owned or leased
by a business entity described by Subdivision (1).
(b) A person may pay a taxing unit's taxes imposed on
property that the person owns in four equal installments without
penalty or interest if the first installment is paid before the
delinquency date and is accompanied by notice to the taxing unit
that the person will pay the remaining taxes in three equal
installments. If the delinquency date is February 1, the second
installment must be paid before April 1, the third installment must
be paid before June 1, and the fourth installment must be paid
before August 1. If the delinquency date is a date other than
February 1, the second installment must be paid before the first day
of the second month after the delinquency date, the third
installment must be paid before the first day of the fourth month
after the delinquency date, and the fourth installment must be paid
before the first day of the sixth month after the delinquency date.
(c) Notwithstanding the deadline prescribed by Subsection
(b) for payment of the first installment, a person to whom this
section applies may pay the taxes in four equal installments as
provided by Subsection (b) if the first installment is paid and the
required notice is provided before the first day of the first month
after the delinquency date.
(d) If the person fails to make a payment before the
applicable date provided by Subsection (b), the unpaid installment
is delinquent and incurs a penalty of six percent and interest as
provided by Section 33.01(c).
(e) A person may pay more than the amount due for each
installment and the amount in excess of the amount due shall be
credited to the next installment. A person may not pay less than
the total amount due for each installment unless the collector
provides for the acceptance of partial payments under this section.
If the collector accepts a partial payment, penalties and interest
are incurred only by the amount of each installment that remains
unpaid on the applicable date provided by Subsection (b).
(f) For the 2023 tax year, the limit on gross receipts under
Subsection (a)(1) is $7 million. For each subsequent tax year, the
comptroller shall adjust the limit to reflect inflation by using
the index that the comptroller considers to most accurately report
changes in the purchasing power of the dollar for consumers in this
state and shall publicize the adjusted limit. Each collector shall
use the adjusted limit as calculated by the comptroller under this
subsection to determine whether property is owned or leased by a
business entity described by Subsection (a)(1).
SECTION 4. Section 31.032(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) real property that:
(A) [is:
[(i) the residence homestead of the owner
or] consists of property that is used for residential purposes and
that has fewer than five living units; [or
[(ii) owned or leased by a business entity
that had not more than the amount calculated as provided by
Subsection (h) in gross receipts in the entity's most recent
federal tax year or state franchise tax annual period, according to
the applicable federal income tax return or state franchise tax
report of the entity;]
(B) is located in a disaster area or emergency
area; and
(C) has been damaged as a direct result of the
disaster or emergency; and
(2) [tangible personal property that is owned or
leased by a business entity described by Subdivision (1)(A)(ii);
and
[(3)] taxes that are imposed on the property by a taxing
unit before the first anniversary of the disaster or emergency.
SECTION 5. Section 33.08(b), Tax Code, is amended to read as
follows:
(b) The governing body of the taxing unit or appraisal
district, in the manner required by law for official action, may
provide that taxes that become delinquent on or after June 1 under
Section 26.075(j), 26.15(e), 31.03, 31.031, 31.0315, 31.032,
[31.033,] 31.04, or 42.42 incur an additional penalty to defray
costs of collection. The amount of the penalty may not exceed the
amount of the compensation specified in the applicable contract
with an attorney under Section 6.30 to be paid in connection with
the collection of the delinquent taxes.
SECTION 6. The following provisions of the Tax Code are
repealed:
(1) Section 31.032(h); and
(2) Section 31.033.
SECTION 7. This Act applies only to ad valorem taxes for
which the delinquency date is on or after the effective date of this
Act.
SECTION 8. This Act takes effect January 1, 2024.