Bill Text: TX HB4890 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to installment payments of ad valorem taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Ways & Means [HB4890 Detail]
Download: Texas-2023-HB4890-Introduced.html
88R4611 SHH-F | ||
By: Shine | H.B. No. 4890 |
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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 [ |
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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 [ |
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(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 | ||
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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) [ |
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that has fewer than five living units; [ |
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(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) [ |
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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, | ||
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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. |