Bill Text: TX HB990 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the repeal of the penalty on a delinquent ad valorem tax on a residence homestead.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-01 - Referred to Ways & Means [HB990 Detail]

Download: Texas-2021-HB990-Introduced.html

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87R2691 SMT-F
By: Shine H.B. No. 990

A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the penalty on a delinquent ad valorem tax
on a residence homestead.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.031(b), Tax Code, is amended to read
as follows:
(b) If the individual fails to make a payment, including the
first payment, before the applicable date provided by Subsection
(a-1), 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.]
SECTION 2. Section 31.032(c), Tax Code, is amended to read
as follows:
(c) Except as otherwise provided by this subsection, if [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). A delinquent installment payment of taxes on
property that qualifies as the property owner's residence homestead
under Section 11.13 does not incur the penalty imposed under this
subsection.
SECTION 3. Section 31.035(e), Tax Code, is amended to read
as follows:
(e) Taxes for which the property owner is to receive credit
under the contract do not become delinquent on the delinquency date
otherwise provided by this chapter as long as the contract is in
effect and are considered paid when the service is performed. If
the property owner fails to perform the service, or if the taxing
unit determines that the service of the property owner is
unsatisfactory, the taxing unit shall terminate the contract and
notify the property owner of the termination. The unpaid taxes for
which the property owner was to receive credit under the contract
for service not yet performed become delinquent and incur [penalty
and] interest provided by Section 33.01 on the later of:
(1) the delinquency date otherwise provided by this
chapter for the unpaid taxes; or
(2) the first day of the next calendar month that
begins at least 21 days after the date the taxing unit delivers
notice to the property owner that the contract has been terminated.
SECTION 4. Section 33.01, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) Notwithstanding any other provision of this section,
a delinquent tax on property that qualifies as the property owner's
residence homestead under Section 11.13 does not incur the penalty
imposed under Subsection (a) or (b) of this section.
SECTION 5. Section 33.02(b), Tax Code, is amended to read as
follows:
(b) Except as provided by Section 33.01(b-1) [Subsection
(b-1)], interest and a penalty accrue as provided by Sections
33.01(a) and (c) on the unpaid balance during the period of the
agreement.
SECTION 6. Section 33.06(d), Tax Code, is amended to read as
follows:
(d) A tax lien remains on the property and interest
continues to accrue during the period collection of taxes is
deferred or abated under this section. The annual interest rate
during the deferral or abatement period is five percent instead of
the rate provided by Section 33.01. Interest and penalties that
accrued or that were incurred or imposed under Section 33.01 or
33.07 before the date the individual files the deferral affidavit
under Subsection (b) or the date the judgment abating the suit is
entered, as applicable, are preserved. [A penalty under Section
33.01 is not incurred during a deferral or abatement period.] The
additional penalty under Section 33.07 may be imposed and collected
only if the taxes for which collection is deferred or abated remain
delinquent on or after the 181st day after the date the deferral or
abatement period expires. A plea of limitation, laches, or want of
prosecution does not apply against the taxing unit because of
deferral or abatement of collection as provided by this section.
SECTION 7. Section 33.065(g), Tax Code, is amended to read
as follows:
(g) A tax lien remains on the property and interest
continues to accrue during the period collection of delinquent
taxes is deferred or abated under this section. The annual interest
rate during the deferral or abatement period is eight percent
instead of the rate provided by Section 33.01. Interest and
penalties that accrued or that were incurred or imposed under
Section 33.01 or 33.07 before the date the individual files the
deferral affidavit under Subsection (c) or the date the judgment
abating the suit is entered, as applicable, are preserved. [A
penalty is not incurred on the delinquent taxes for which
collection is deferred or abated during a deferral or abatement
period.] The additional penalty under Section 33.07 may be imposed
and collected only if the delinquent taxes for which collection is
deferred or abated remain delinquent on or after the 91st day after
the date the deferral or abatement period expires. A plea of
limitation, laches, or want of prosecution does not apply against
the taxing unit because of deferral or abatement of collection as
provided by this section.
SECTION 8. Section 33.02(b-1), Tax Code, is repealed.
SECTION 9. The change in law made by this Act applies only
to the penalty for failure to pay a tax that becomes delinquent on
or after the effective date of this Act. The penalty for failure to
pay a tax that became delinquent before the effective date of this
Act is governed by the law in effect when the tax became delinquent,
and the former law is continued in effect for that purpose.
SECTION 10. This Act takes effect September 1, 2021.