Bill Text: TX HB3490 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the authority of an owner of residential rental property on which a tenant has defaulted on the obligation to pay rent during the COVID-19 pandemic to pay the ad valorem taxes imposed on the property in installments.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2021-03-22 - Referred to Ways & Means [HB3490 Detail]
Download: Texas-2021-HB3490-Introduced.html
87R6432 CJC-D | ||
By: Deshotel | H.B. No. 3490 |
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relating to the authority of an owner of residential rental | ||
property on which a tenant has defaulted on the obligation to pay | ||
rent during the COVID-19 pandemic to pay the ad valorem taxes | ||
imposed on the property in installments. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 31, Tax Code, is amended by adding | ||
Section 31.033 to read as follows: | ||
Sec. 31.033. INSTALLMENT PAYMENT OF TAXES ON RESIDENTIAL | ||
REAL PROPERTY RENTED TO TENANT AFFECTED BY COVID-19. (a) In this | ||
section, "COVID-19" means the 2019 novel coronavirus disease. | ||
(b) This section applies only to taxes imposed by a taxing | ||
unit in a tax year on property that: | ||
(1) is used for residential purposes; | ||
(2) has fewer than five living units; and | ||
(3) is leased or rented to a tenant who: | ||
(A) as a result of the COVID-19 pandemic has | ||
defaulted on the tenant's obligation to pay rent on the property; | ||
and | ||
(B) may not be evicted from the property under a | ||
local, state, or federal order limiting or prohibiting evictions | ||
for a specified period. | ||
(c) A person may pay a taxing unit's taxes imposed on | ||
property described by Subsection (b) in 12 or 18 equal installments | ||
without penalty or interest if the first installment is paid before | ||
the delinquency date and is accompanied by a notice to the taxing | ||
unit that the person will pay the remaining taxes in 11 or 17 equal | ||
monthly installments, as applicable. The notice must be | ||
accompanied by an affidavit signed by the person stating that all or | ||
part of the property on which the taxes are due is leased or rented | ||
to a tenant who has defaulted on the tenant's obligation to pay rent | ||
as a result of the COVID-19 pandemic and who may not be evicted from | ||
the property under a local, state, or federal order. | ||
(d) If the delinquency date is February 1, the second | ||
installment must be paid before March 1, and each subsequent | ||
installment must be paid before the first day of each subsequent | ||
month. | ||
(e) If the delinquency date is a date other than February 1, | ||
the second installment must be paid before the first day of the | ||
first month after the delinquency date, and each subsequent | ||
installment must be paid before the first day of each subsequent | ||
month. | ||
(f) If the person fails to make a payment before the | ||
applicable due date provided by this section, the unpaid | ||
installment is delinquent and incurs a penalty of six percent and | ||
interest as provided by Section 33.01(c). The penalty provided by | ||
Section 33.01(a) does not apply to the unpaid installment. | ||
(g) 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 due date. | ||
(h) The comptroller shall adopt rules to implement this | ||
section. | ||
(i) This section expires January 1, 2024. | ||
SECTION 2. This Act applies only to ad valorem taxes for | ||
which the delinquency date is on or after the effective date of this | ||
Act. | ||
SECTION 3. This Act takes effect September 1, 2021. |