Bill Text: TX SB1486 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the electronic payment of ad valorem taxes; authorizing a fee.

Spectrum: Slight Partisan Bill (Republican 7-3)

Status: (Engrossed - Dead) 2023-04-12 - Referred to Ways & Means [SB1486 Detail]

Download: Texas-2023-SB1486-Comm_Sub.html
 
 
  By: Bettencourt, et al.  S.B. No. 1486
         (In the Senate - Filed March 2, 2023; March 16, 2023, read
  first time and referred to Committee on Local Government;
  March 29, 2023, reported favorably by the following vote:  Yeas 7,
  Nays 0; March 29, 2023, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the electronic payment of ad valorem taxes; authorizing
  a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 31.06, Tax Code, is amended by amending
  Subsections (a) and (c) and adding Subsection (a-1) to read as
  follows:
         (a)  In this section, "electronic payment" has the meaning
  assigned by Section 31.062.
         (a-1)  Except as provided by Section 31.061, taxes are
  payable only as provided by this section.  Except as provided by
  Subsection (e), a collector shall accept United States currency or
  a check or money order in payment of taxes and shall accept an
  electronic payment of taxes made in the manner provided by Section
  31.062 [payment by credit card or electronic funds transfer].
         (c)  If a tax is paid by an electronic payment [credit card],
  the collector may collect a fee for processing the payment.  The
  collector shall set the fee in an amount that is reasonably related
  to the expense incurred by the collector or taxing unit in
  processing the payment [by credit card], not to exceed five percent
  of the amount of taxes and any penalties or interest being paid.  
  The fee is in addition to the amount of taxes, penalties, or
  interest.
         SECTION 2.  Chapter 31, Tax Code, is amended by adding
  Section 31.062 to read as follows:
         Sec. 31.062.  ELECTRONIC TAX PAYMENTS. (a)  In this section,
  "electronic payment" means a payment made by credit card, debit
  card, electronic check, electronic funds transfer, wire transfer,
  or automated clearinghouse withdrawal.
         (b)  Notwithstanding any other provision of this title, a
  collector shall accept an electronic payment of taxes from a
  property owner or a person designated by a property owner under
  Section 1.111(f) if the property owner or person elects to make
  electronic payments under Subsection (c) of this section.
         (c)  A collector shall establish a procedure that allows a
  property owner or a person designated by a property owner under
  Section 1.111(f) to make the election described by Subsection (b)
  of this section.  The procedure must specify the manner by which the
  property owner or the person designated by the owner will make
  electronic payments of taxes and the method that will be used to
  confirm the receipt by the collector of an electronic payment.
         (d)  An election under Subsection (c) of this section by a
  property owner or a person designated by a property owner under
  Section 1.111(f) remains in effect until rescinded in writing by
  the property owner or person designated by the owner.
         (e)  A collector may require a property owner or a person
  designated by a property owner under Section 1.111(f) who elects to
  make electronic payments of taxes to provide:
               (1)  an e-mail address;
               (2)  a financial account number; and
               (3)  any other information the collector determines is
  necessary to properly receive, process, and confirm the receipt of
  an electronic payment made by the property owner or the person
  designated by the owner.
         (f)  A collector shall prominently display the information
  necessary to make an electronic payment of taxes to the collector on
  the collector's Internet website if the collector maintains an
  Internet website.
         (g)  An electronic payment of taxes by a property owner or a
  person designated by a property owner under Section 1.111(f) to a
  collector is timely if the payment is:
               (1)  addressed to the correct delivery portal or
  electronic delivery system; and
               (2)  sent or uploaded on or before the date on which the
  payment is due.
         (h)  A collector shall notify a property owner or a person
  designated by a property owner under Section 1.111(f) who elects to
  make electronic payments of taxes under this section and who has not
  rescinded the election of a change in the procedure for making an
  electronic payment to the collector, including a change relating to
  the collector's e-mail address or the collector's routing or
  account number to which a payment must be made, not later than the
  earlier of:
               (1)  the 45th day after the date the change is made; or
               (2)  the 60th day before the date the taxes are due.
         (i)  If a collector fails to provide timely notice of a
  change in procedure under Subsection (h) of this section to a
  property owner or a person designated by a property owner under
  Section 1.111(f), an electronic payment of taxes made to the
  collector by the property owner or person designated by the owner is
  considered to be timely delivered until the notice is received.
         (j)  An electronic signature that is included on or with an
  electronic payment of taxes made under this section is considered
  to be a digital signature for purposes of Section 2054.060,
  Government Code, and that section applies to the electronic
  signature.
         (k)  A collector shall immediately confirm the receipt of an
  electronic payment of taxes made to the collector by a property
  owner or a person designated by a property owner under Section
  1.111(f).
         (l)  The comptroller shall adopt rules for the
  implementation of this section.
         SECTION 3.  Section 33.011(h), Tax Code, is amended to read
  as follows:
         (h)  The governing body of a taxing unit shall waive
  penalties and interest on a delinquent tax if:
               (1)  the taxpayer has elected to make electronic
  payments of taxes under Section 31.062 [tax is payable by
  electronic funds transfer under an agreement entered into under
  Section 31.06(a)]; and
               (2)  the taxpayer submits evidence sufficient to show
  that:
                     (A)  the taxpayer attempted to pay the tax by
  electronic payment [funds transfer] in the proper manner before the
  delinquency date;
                     (B)  the taxpayer's failure to pay the tax before
  the delinquency date was caused by an error in the transmission of
  the payment [funds]; and
                     (C)  the tax was properly paid by electronic
  payment [funds transfer] or otherwise not later than the 21st day
  after the date the taxpayer knew or should have known of the
  delinquency.
         SECTION 4.  The changes in law made by this Act apply only to
  a tax year that begins on or after the effective date of this Act.
         SECTION 5.  (a)  The officer or employee responsible for
  collecting property taxes for a taxing unit located wholly or
  primarily in a county with a population of 120,000 or more shall
  comply with Section 31.062, Tax Code, as added by this Act,
  beginning with the 2024 tax year.
         (b)  The officer or employee responsible for collecting
  property taxes for a taxing unit located wholly or primarily in a
  county with a population of less than 120,000 shall comply with
  Section 31.062, Tax Code, as added by this Act, beginning with the
  2025 tax year.
         SECTION 6.  This Act takes effect January 1, 2024.
 
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