| 1 | 1 | | 89R4144 PRL-F |
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| 2 | 2 | | By: Vasut H.B. No. 2742 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the split-payment of ad valorem taxes. |
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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 31.03, Tax Code, is amended by amending |
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| 12 | 12 | | Subsection (a) and adding Subsection (a-1) to read as follows: |
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| 13 | 13 | | (a) The governing body of a taxing unit that collects its |
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| 14 | 14 | | own taxes may provide, in the manner required by law for official |
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| 15 | 15 | | action by the body, that a person who pays one-half of the taxing |
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| 16 | 16 | | unit's taxes before December 1 or, if applicable, the date provided |
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| 17 | 17 | | by Subsection (a-1) may pay the remaining one-half of the taxes |
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| 18 | 18 | | without penalty or interest before July 1 of the following year. |
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| 19 | 19 | | (a-1) If a taxing unit that has adopted the split-payment |
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| 20 | 20 | | option provided by Subsection (a) mails its tax bills after |
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| 21 | 21 | | November 30, the first one-half of the taxing unit's taxes must be |
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| 22 | 22 | | paid before the first day of the next month following the first full |
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| 23 | 23 | | calendar month following the date the tax bills are mailed. |
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| 24 | 24 | | SECTION 2. Section 31.04(c), Tax Code, is amended to read as |
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| 25 | 25 | | follows: |
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| 26 | 26 | | (c) A [payment option provided by Section 31.03 of this code |
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| 27 | 27 | | or a] discount adopted under Section 31.05(b) [of this code] does |
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| 28 | 28 | | not apply to taxes that are calculated too late for it to be |
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| 29 | 29 | | available. |
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| 30 | 30 | | SECTION 3. Section 42.08(c), Tax Code, is amended to read as |
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| 31 | 31 | | follows: |
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| 32 | 32 | | (c) A property owner that pays an amount of taxes greater |
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| 33 | 33 | | than that required by Subsection (b) does not forfeit the property |
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| 34 | 34 | | owner's right to a final determination of the appeal by making the |
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| 35 | 35 | | payment. The property owner may pay an additional amount of taxes |
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| 36 | 36 | | at any time. If the property owner files a timely appeal under this |
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| 37 | 37 | | chapter, taxes paid on the property are considered paid under |
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| 38 | 38 | | protest, even if paid before the appeal is filed. If the taxes are |
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| 39 | 39 | | subject to the split-payment option provided by Section 31.03, the |
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| 40 | 40 | | property owner may comply with Subsection (b) of this section by |
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| 41 | 41 | | paying one-half of the amount otherwise required to be paid under |
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| 42 | 42 | | that subsection before December 1 or, if applicable, the date |
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| 43 | 43 | | provided by Section 31.03(a-1) and paying the remaining one-half of |
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| 44 | 44 | | that amount before July 1 of the following year. |
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| 45 | 45 | | SECTION 4. The changes in law made by this Act apply only to |
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| 46 | 46 | | ad valorem taxes imposed for an ad valorem tax year that begins on |
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| 47 | 47 | | or after the effective date of this Act. |
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| 48 | 48 | | SECTION 5. This Act takes effect January 1, 2026. |
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