S.B. No. 742
AN ACT
relating to installment payments of ad valorem taxes on property in
a disaster area or emergency area.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 31.032, Tax Code, is
amended to read as follows:
Sec. 31.032. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN
DISASTER AREA OR EMERGENCY AREA THAT HAS BEEN DAMAGED AS A RESULT OF
DISASTER OR EMERGENCY.
SECTION 2. Section 31.032(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) real property that:
(A) is:
(i) the residence homestead of the owner or
consists of property that is used for residential purposes and that
has fewer than five living units; or
(ii) owned or leased by a business entity
that had not more than the amount calculated as provided by
Subsection (h) 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;
(B) is located in a disaster area or emergency
area; and
(C) has been damaged as a direct result of the
disaster or emergency;
(2) tangible personal property that is owned or leased
by a business entity described by Subdivision (1)(A)(ii); and
(3) taxes that are imposed on the property by a taxing
unit before the first anniversary of the disaster or emergency.
SECTION 3. Section 31.032(g), Tax Code, is amended by
adding Subdivisions (3) and (4) to read as follows:
(3) “Emergency” means a state of emergency proclaimed
by the governor under Section 433.001, Government Code.
(4) “Emergency area” means an area designated by the
governor to be affected by an emergency under Section 433.001,
Government Code.
SECTION 4. Chapter 31, Tax Code, is amended by adding
Section 31.033 to read as follows:
Sec. 31.033. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN
DISASTER AREA OR EMERGENCY AREA THAT HAS NOT BEEN DAMAGED AS A
RESULT OF DISASTER OR EMERGENCY. (a) In this section, “disaster,”
“disaster area,” “emergency,” and “emergency area” have the
meanings assigned by Section 31.032(g).
(b) This section applies only to:
(1) real property that:
(A) is owned or leased by a business entity that
had not more than the amount calculated as provided by Section
31.032(h) 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;
(B) is located in a disaster area or emergency
area; and
(C) has not been damaged as a direct result of the
disaster or emergency;
(2) tangible personal property that is owned or leased
by a business entity described by Subdivision (1)(A); and
(3) taxes that are imposed on the property by a taxing
unit before the first anniversary of the disaster or emergency.
(c) The governing body of a taxing unit may authorize a
person to pay the taxing unit’s taxes imposed on property that the
person owns in installments. If the governing body of a taxing unit
adopts the installment-payment option under this subsection,
Sections 31.032(b), (b-1), (c), and (d) apply to the payment by a
person of the taxing unit’s taxes imposed on property that the
person owns in the same manner as those subsections apply to the
payment of taxes imposed on property to which Section 31.032
applies.
(d) The comptroller shall adopt rules to implement this
section.
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, 31.032, 31.033, 31.04,
or 42.42 incur an additional penalty to defray 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. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 742 passed the Senate on
April 8, 2021, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 742 passed the House on
May 20, 2021, by the following vote: Yeas 143, Nays 3, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor