Bill Text: TX SB551 | 2011-2012 | 82nd Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to liability for interest on ad valorem taxes on improvements that escaped taxation in a previous year.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2011-05-27 - Effective on 9/1/11 [SB551 Detail]
Download: Texas-2011-SB551-Engrossed.html
Bill Title: Relating to liability for interest on ad valorem taxes on improvements that escaped taxation in a previous year.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2011-05-27 - Effective on 9/1/11 [SB551 Detail]
Download: Texas-2011-SB551-Engrossed.html
By: Williams, West | S.B. No. 551 |
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relating to liability for interest on ad valorem taxes on | ||
improvements that escaped taxation in a previous year. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 26.09, Tax Code, is amended by amending | ||
Subsection (d) and adding Subsections (d-1) and (d-2) to read as | ||
follows: | ||
(d) If a property is subject to taxation for a prior year in | ||
which it escaped taxation, the assessor shall calculate the tax for | ||
each year separately. In calculating the tax, the assessor [ |
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shall use the assessment ratio and tax rate in effect in the unit | ||
for the year for which back taxes are being imposed. Except as | ||
provided by Subsection (d-1), [ |
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incurs[ |
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date the tax would have become delinquent had the tax been imposed | ||
in the proper tax year. | ||
(d-1) For purposes of this subsection, an appraisal | ||
district has constructive notice of the presence of an improvement | ||
if a building permit for the improvement has been issued by an | ||
appropriate governmental entity. Back taxes assessed under | ||
Subsection (d) on an improvement to real property do not incur | ||
interest if: | ||
(1) the land on which the improvement is located did | ||
not escape taxation in the year in which the improvement escaped | ||
taxation; | ||
(2) the appraisal district had actual or constructive | ||
notice of the presence of the improvement in the year in which the | ||
improvement escaped taxation; and | ||
(3) the property owner pays all back taxes due on the | ||
improvement not later than the 120th day after the date the tax bill | ||
for the back taxes on the improvement is sent. | ||
(d-2) For purposes of Subsection (d-1)(3), if an appeal | ||
under Chapter 41A or 42 relating to the taxes imposed on the omitted | ||
improvement is pending on the date prescribed by that subdivision, | ||
the property owner is considered to have paid the back taxes due by | ||
that date if the property owner pays the amount of taxes required by | ||
Section 41A.10 or 42.08, as applicable. | ||
SECTION 2. Section 31.01, Tax Code, is amended by adding | ||
Subsection (c-2) to read as follows: | ||
(c-2) For a tax bill that includes back taxes on an | ||
improvement that escaped taxation in a prior year, the tax bill or | ||
separate statement described by Subsection (c) must state that no | ||
interest is due on the back taxes if those back taxes are paid not | ||
later than the 120th day after the date the tax bill is sent. | ||
SECTION 3. The change in law made by this Act applies only | ||
to an omitted improvement included in a tax bill that is first sent | ||
to the property owner on or after the effective date of this Act. | ||
SECTION 4. This Act takes effect September 1, 2011. |