88R4611 SHH-F     By: Shine H.B. No. 4890       A BILL TO BE ENTITLED   AN ACT   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 [CERTAIN HOMESTEAD]   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 [:                      [(A) disabled or at least 65 years of age; and                      [(B)] qualified for an exemption under Section   11.13 [11.13(c)]; or                (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   [11.132 or] 11.22.          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)  [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; and                (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 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,   [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.  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.