CHAPTER 31. COLLECTIONS
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE E. COLLECTIONS AND DELINQUENCY
CHAPTER 31. COLLECTIONS
Sec. 31.01. TAX BILLS. (a) Except as provided by Subsections
(f) and (i-1), the assessor for each taxing unit shall prepare
and mail a tax bill to each person in whose name the property is
listed on the tax roll and to the person's authorized agent. The
assessor shall mail tax bills by October 1 or as soon thereafter
as practicable. The assessor shall mail to the state agency or
institution the tax bill for any taxable property owned by the
agency or institution. The agency or institution shall pay the
taxes from funds appropriated for payment of the taxes or, if
there are none, from funds appropriated for the administration of
the agency or institution. The exterior of the tax bill must
show the return address of the taxing unit. If the assessor
wants the United States Postal Service to return the tax bill if
it is not deliverable as addressed, the exterior of the tax bill
may contain, in all capital letters, the words "RETURN SERVICE
REQUESTED," or another appropriate statement directing the United
States Postal Service to return the tax bill if it is not
deliverable as addressed.
(b) The county assessor-collector shall mail the tax bill for
Permanent University Fund land to the comptroller. The
comptroller shall pay all county tax bills on Permanent
University Fund land with warrants drawn on the General Revenue
Fund and mailed to the county assessors-collectors before
February 1.
(c) The tax bill or a separate statement accompanying the tax
bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and taxable value
of the property;
(3) if the property is land appraised as provided by Subchapter
C, D, E, or H, Chapter 23, state the market value and the taxable
value for purposes of deferred or additional taxation as provided
by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided by
Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided
by Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed for
delinquent payment of the tax;
(10) include the name and telephone number of the assessor for
the unit and, if different, of the collector for the unit;
(11) for real property, state for the current tax year and each
of the preceding five tax years:
(A) the appraised value and taxable value of the property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property by the unit; and
(D) the difference, expressed as a percent increase or decrease,
as applicable, in the amount of taxes imposed on the property by
the unit compared to the amount imposed for the preceding tax
year; and
(12) for real property, state the differences, expressed as a
percent increase or decrease, as applicable, in the following for
the current tax year as compared to the fifth tax year before
that tax year:
(A) the appraised value and taxable value of the property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property by the unit.
(c-1) If for any of the preceding six tax years any information
required by Subsection (c)(11) or (12) to be included in a tax
bill or separate statement is unavailable, the tax bill or
statement must state that the information is not available for
that year.
(d) Each tax bill shall also state the amount of penalty, if
any, imposed pursuant to Sections 23.431, 23.54, 23.541, 23.75,
23.751, 23.87, 23.97, and 23.9804.
(d-1) This subsection applies only to a school district. In
addition to stating the total tax rate for the school district,
the tax bill or the separate statement shall separately state:
(1) the maintenance and operations rate of the school district;
(2) if the school district has outstanding debt, as defined by
Section 26.012, the debt rate of the district;
(3) the maintenance and operations rate of the school district
for the preceding tax year;
(4) if for the current tax year the school district imposed
taxes for debt, as defined by Section 26.012, the debt rate of
the district for the current tax year;
(5) if for the preceding tax year the school district imposed
taxes for debt, as defined by Section 26.012, the debt rate of
the district for that year; and
(6) the total tax rate of the district for the preceding tax
year.
(d-2) This subsection applies only to a school district and only
in connection with taxes imposed by the district in 2007. This
subsection expires January 1, 2008. In addition to any other
information required by this section, the tax bill or separate
statement shall separately state:
(1) the amount of tax that would be imposed by applying the
district's maintenance and operations rate for the 2005 tax year
to current total value for 2007;
(2) the amount of tax that would be imposed by applying the
district's maintenance and operations rate for the 2007 tax year
to current total value for 2007; and
(3) the amount, if any, by which the amount calculated under
Subdivision (1) exceeds the amount calculated under Subdivision
(2), which must be labeled "Estimate of school district
maintenance and operations property tax savings attributable to
House Bill No. 1, Acts of the 79th Legislature, 3rd Called
Session, 2006, and appropriations of state funds by the 80th
Legislature."
(e) An assessor may include taxes for more than one taxing unit
in the same tax bill, but he shall include the information
required by Subsection (c) of this section for the tax imposed by
each unit included in the bill.
(f) A collector may provide that a tax bill not be sent until
the total amount of unpaid taxes the collector collects on the
property for all taxing units the collector serves is $15 or
more. A collector may not send a tax bill for an amount of taxes
less than $15 if before the tax bill is prepared the property
owner files a written request with the collector that a tax bill
not be sent until the total amount of unpaid taxes the collector
collects on the property is $15 or more. The request applies to
all subsequent taxes the collector collects on the property until
the property owner in writing revokes the request or the person
no longer owns the property.
(g) Except as provided by Subsection (f) of this section,
failure to send or receive the tax bill required by this section
does not affect the validity of the tax, penalty, or interest,
the due date, the existence of a tax lien, or any procedure
instituted to collect a tax.
(h) An assessor who assesses taxes for more than one taxing unit
may prepare and deliver separate bills for the taxes of a taxing
unit that does not adopt a tax rate for the year before the 60th
day after the date the chief appraiser certifies the appraisal
roll for the unit under Section 26.01 of this code or, if the
taxing unit participates in more than one appraisal district,
before the 60th day after the date it receives a certified
appraisal roll from any of the appraisal districts in which it
participates. If separate tax bills are prepared and delivered
under this subsection, the taxing unit or taxing units that
failed to adopt the tax rate before the prescribed deadline must
pay the additional costs incurred in preparing and mailing the
separate bills in addition to any other compensation required or
agreed to be paid for the appraisal services rendered.
(i) For a city or town that imposes an additional sales and use
tax under Section 321.101(b) of this code, or a county that
imposes a sales and use tax under Chapter 323 of this code, the
tax bill shall indicate the amount of additional ad valorem
taxes, if any, that would have been imposed on the property if
additional ad valorem taxes had been imposed in an amount equal
to the amount of revenue estimated to be collected from the
additional city sales and use tax or from the county sales and
use tax, as applicable, for the year determined as provided by
Section 26.041 of this code.
(i-1) If an assessor mails a tax bill under Subsection (a) to a
mortgagee of a property, the assessor is not required to mail a
copy of the bill to any mortgagor under the mortgage or to the
mortgagor's authorized agent.
(j) If a tax bill is mailed under Subsection (a) of this section
to a mortgagee of a property, the mortgagee shall mail a copy of
the bill to the owner of the property not more than 30 days
following the mortgagee's receipt of the bill.
Acts 1979, 66th Leg., p. 2284, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., p. 2359, ch. 581, Sec. 3,
eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 166, ch.
13, Sec. 122, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 15, ch.
5, Sec. 1, eff. March 14, 1983; Acts 1985, 69th Leg., ch. 429,
Sec. 1, eff. June 11, 1985; Acts 1987, 70th Leg., ch. 11, Sec.
13, eff. April 2, 1987; Acts 1987, 70th Leg., ch. 834, Sec. 1,
eff. June 18, 1987; Acts 1989, 71st Leg., ch. 2, Sec.
14.27(d)(2), 14.28(2), eff. Aug. 28, 1989; Acts 1989, 71st Leg.,
ch. 969, Sec. 1, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch.
836, Sec. 9.1, eff. Aug. 26, 1991; Acts 1991, 72nd Leg., 2nd
C.S., ch. 6, Sec. 47, eff. Sept. 1, 1991; Acts 1993, 73rd Leg.,
ch. 926, Sec. 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch.
1012, Sec. 2, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 906,
Sec. 1, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 1039, Sec.
32, eff. Jan. 1, 1998; Acts 1999, 76th Leg., ch. 547, Sec. 1,
eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 631, Sec. 8, eff.
Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch.
846, Sec. 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1255, Sec. 2, eff. January 1, 2006.
Acts 2005, 79th Leg., Ch.
1368, Sec. 5, eff. June 18, 2005.
Acts 2006, 79th Leg., 3rd C.S., Ch.
5, Sec. 1.15(a), eff. May 31, 2006.
Acts 2006, 79th Leg., 3rd C.S., Ch.
5, Sec. 1.15(b), eff. May 31, 2006.
Acts 2006, 79th Leg., 3rd C.S., Ch.
5, Sec. 1.15(c), eff. May 31, 2006.
Acts 2007, 80th Leg., R.S., Ch.
107, Sec. 1, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1106, Sec. 2, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
1205, Sec. 1, eff. September 1, 2009.
Sec. 31.02. DELINQUENCY DATE. (a) Except as provided by
Subsection (b) of this section and by Sections 31.03 and 31.04 of
this code, taxes are due on receipt of the tax bill and are
delinquent if not paid before February 1 of the year following
the year in which imposed.
(b) An eligible person serving on active duty in any branch of
the United States armed forces during a war or national emergency
declared in accordance with federal law may pay delinquent
property taxes on property in which the person owns any interest
without penalty or interest no later than the 60th day after the
date on which the earliest of the following occurs:
(1) the person is discharged from active military service;
(2) the person returns to the state for more than 10 days;
(3) the person returns to non-active duty status in the
reserves; or
(4) the war or national emergency ends.
(c) "Eligible person" means a person on active military duty in
this state who was transferred out of this state as a result of a
war or national emergency declared in accordance with federal law
or a person in the reserve forces who was placed on active
military duty and transferred out of this state as a result of a
war or national emergency declared in accordance with federal
law.
(d) A person eligible under Subsection (b) or any co-owner of
property that is owned by an eligible person may notify the
county tax assessor or collector or central appraisal district
for the county in which the property is located of the person's
eligibility for exemption under Subsection (b). The county tax
assessor or collector or central appraisal district shall provide
the forms necessary for those individuals giving notice under
this subsection. If the notice is timely given, a taxing unit in
the county may not bring suit for delinquent taxes for the tax
year in which the notice is given. Failure to file a notice does
not affect eligibility for the waiver of penalties and interest.
(e) On verification that notice was properly filed under
Subsection (d), a suit for delinquent taxes must be abated
without cost to the defendant. The exemptions provided for under
this section shall immediately stop all actions against eligible
persons until the person's eligibility expires as provided in
Subsection (b).
(f) This section applies only to property in which the person
eligible for the exemption owned an interest on the date the
person was transferred out of this state as described by
Subsection (c) or in which the person acquired the interest by
gift, devise, or inheritance after that date.
(g) For the purposes of this section, a person is considered to
be on active military duty if the person is covered by the
Soldiers' and Sailors' Civil Relief Act of 1940 (50 App. U.S.C.
Section 501 et seq.) or the Uniformed Services Employment and
Reemployment Rights Act of 1994 (38 U.S.C. Section 4301 et seq.),
as amended.
(h) Repealed by Acts 2003, 78th Leg., ch. 129, Sec. 2.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., ch. 381, Sec. 1, eff. Aug.
26, 1991; Acts 2003, 78th Leg., ch. 129, Sec. 1, 2, eff. May 27,
2003.
Sec. 31.03. SPLIT PAYMENT OF TAXES. (a) The governing body of
a taxing unit that collects its own taxes may provide, in the
manner required by law for official action by the body, that a
person who pays one-half of the unit's taxes before December 1
may pay the remaining one-half of the taxes without penalty or
interest before July 1 of the following year.
(b) Except as provided by Subsection (d), the split-payment
option, if adopted, applies to taxes for all units for which the
adopting taxing unit collects taxes.
(c) If one or more taxing units contract with the appraisal
district for collection of taxes, the split-payment option
provided by Subsection (a) of this section does not apply to
taxes collected by the district unless approved by resolution
adopted by a majority of the governing bodies of the taxing units
whose taxes the district collects and filed with the secretary of
the appraisal district board of directors. After an appraisal
district provides for the split-payment option, the option
applies to all taxes collected by the district until revoked. It
may be revoked in the same manner as provided for adoption.
(d) This subsection applies only to a taxing unit located in a
county having a population of 250,000 or more that borders a
county having a population of 3.3 million or more and the Gulf of
Mexico. The governing body of a taxing unit that has its taxes
collected by another taxing unit that has adopted the
split-payment option under Subsection (a) may provide, in the
manner required by law for official action by the body, that the
split-payment option does not apply to the taxing unit's taxes
collected by the other taxing unit.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 167, ch. 13,
Sec. 123, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4827, ch.
851, Sec. 20, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p. 4875,
ch. 862, Sec. 1, eff. Sept. 1, 1983.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
395, Sec. 1, eff. June 15, 2007.
Sec. 31.031. INSTALLMENT PAYMENTS OF CERTAIN HOMESTEAD TAXES.
(a) If before the delinquency date an individual who is disabled
or at least 65 years of age and is qualified for an exemption
under Section 11.13(c) pays at least one-fourth of a taxing
unit's taxes imposed on property that the person owns and
occupies as a residence homestead, accompanied by notice to the
taxing unit that the person will pay the remaining taxes in
installments, the person may pay the remaining taxes without
penalty or interest in three equal installments. The first
installment must be paid before April 1, the second installment
before June 1, and the third installment before August 1.
(b) If the individual fails to make a payment before the
applicable date provided by Subsection (a), the unpaid amount 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 amount.
(c) An individual 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. An individual 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 (a).
(d) If the delinquency date for taxes to which this section
applies is postponed to May 1 or a later date, the collector
shall extend each installment deadline provided by Subsection (a)
by the number of months that the delinquency date was postponed.
Added by Acts 1989, 71st Leg., ch. 746, Sec. 1, eff. Sept. 1,
1990. Amended by Acts 1993, 73rd Leg., ch. 171, Sec. 1, eff.
Sept. 1, 1993; Acts 1995, 74th Leg., ch. 510, Sec. 1, eff. Aug.
28, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
1274, Sec. 1, eff. September 1, 2005.
Sec. 31.032. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN
DISASTER AREA. (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; and
(C) has been damaged as a direct result of the disaster;
(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.
(b) If, before the delinquency date, a person pays at least
one-fourth of a taxing unit's taxes imposed on property that the
person owns, accompanied by notice to the taxing unit that the
person will pay the remaining taxes in installments, the person
may pay the remaining taxes without penalty or interest in three
equal installments. The first installment must be paid before
April 1, the second installment before June 1, and the third
installment before August 1.
(c) If the person fails to make a payment before the applicable
date provided by Subsection (b), the unpaid amount is delinquent
and incurs a penalty of 12 percent and interest as provided by
Section 33.01(c).
(d) 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).
(e) If the delinquency date for taxes to which this section
applies is postponed to May 1 or a later date, the collector
shall extend each installment deadline provided by Subsection (b)
by the number of months that the delinquency date was postponed.
The collector may not extend the third installment deadline
beyond December 31.
(f) The comptroller shall adopt rules to implement this section.
(g) In this section:
(1) "Disaster" has the meaning assigned by Section 418.004,
Government Code.
(2) "Disaster area" has the meaning assigned by Section 151.350.
(h) For the 2009 tax year, the limit on gross receipts under
Subsection (a)(1)(A)(ii) is $5 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)(A)(ii).
Added by Acts 1995, 74th Leg., ch. 1041, Sec. 1, eff. June 17,
1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
359, Sec. 2, eff. June 19, 2009.
Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF TAXES
ON HOMESTEAD OF ELDERLY PERSON. (a) The governing body of a
taxing unit by order or resolution may permit an individual who
is at least 65 years of age to perform service for the taxing
unit in lieu of paying taxes imposed by the taxing unit on
property owned by the individual and occupied as the individual's
residence homestead.
(b) The governing body of the taxing unit shall determine:
(1) the number of property owners who will be permitted to
perform service for the taxing unit under this section; and
(2) the maximum number of hours of service that a property owner
may perform for the taxing unit under this section.
(c) The governing body shall require that each property owner
permitted to perform service for the taxing unit under this
section execute a contract with the taxing unit. The contract
must be executed before the delinquency date and must:
(1) specify:
(A) the nature of the service that the property owner will
perform for the taxing unit;
(B) the facility or location where the service will be
performed;
(C) the number of hours of service the property owner will
perform; and
(D) when the property owner will perform the service; and
(2) set out or describe the provisions of Subsections (d), (e),
and (f).
(d) For each hour of service performed for the taxing unit, the
property owner receives a credit against the taxes owed in an
amount equal to the amount that would be earned by working one
hour at the federal hourly minimum wage rate. The contract must
require the property owner to perform the service not later than
one year after the delinquency date for the taxes against which
the property owner receives credit.
(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.
(f) While performing service for a taxing unit, the property
owner:
(1) is not an employee of the taxing unit; and
(2) is not entitled to any benefit, including workers'
compensation coverage, that the taxing unit provides to an
employee of the taxing unit.
(g) Property owners performing services for a taxing unit under
this section may only supplement or complement the regular
personnel of the taxing unit. A taxing unit may not reduce the
number of persons the taxing unit employs or reduce the number of
hours to be worked by employees of the taxing unit because the
taxing unit permits property owners to perform services for the
taxing unit under this section.
(h) A person performing service for a taxing unit under this
section is not entitled to indemnification from the taxing unit
for injury or property damage the person sustains or liability
the person incurs in performing service under this section. The
taxing unit is not liable for any damages arising from an act or
omission of the person in performing service under this section.
Added by Acts 1999, 76th Leg., ch. 637, Sec. 1, eff. Aug. 30,
1999.
Sec. 31.036. PERFORMANCE OF TEACHING SERVICES IN LIEU OF PAYMENT
OF SCHOOL TAXES ON HOMESTEAD. (a) The governing body of a
school district by resolution may permit qualified individuals to
perform teaching services for the school district at a junior
high school or high school of the district in lieu of paying
taxes imposed by the district on property owned and occupied by
the individual as a residence homestead.
(b) The governing body of the school district shall determine:
(1) the number of qualified individuals who will be permitted to
perform teaching services for the district under this section;
(2) the courses that a qualified individual may teach for the
district under this section; and
(3) the amount of the tax credit that a qualified individual may
earn.
(c) The governing body shall require that each qualified
individual permitted to perform teaching services for the
district under this section execute a contract with the district.
The contract must be executed before the delinquency date and
must:
(1) specify:
(A) the course or courses that the qualified individual will
teach for the district;
(B) the high school or junior high school of the district where
the qualified individual will perform the teaching services;
(C) the semester in which the qualified individual will perform
the teaching services; and
(D) the amount of the tax credit that the qualified individual
will receive on successful completion of the individual's
contractual obligations; and
(2) set out or describe the provisions of Subsections (d)-(g).
(d) A qualified individual who teaches a course for an entire
school semester is entitled to a maximum credit of $500 against
the taxes imposed, except that if the qualified individual
teaches a course for which a student receives a full year's
credit for one semester, the qualified individual is entitled to
a maximum credit of $1,000 for each such course taught for one
semester by the qualified individual. A qualified individual may
not receive credits for teaching more than two courses in any
school year.
(e) The district shall terminate the contract if:
(1) the qualified individual fails to perform the teaching
services; or
(2) the district determines that the teaching services of the
qualified individual are unsatisfactory.
(f) If the contract is terminated under Subsection (e), on the
termination date the district may grant the individual a portion
of the tax credit based on the portion of the teaching services
performed.
(g) While performing teaching services for a school district,
the qualified individual:
(1) is not an employee of the district; and
(2) is not entitled to any benefit, including workers'
compensation coverage, that the district provides to an employee
of the district.
(h) An individual is qualified to perform teaching services for
a school district under this section only if the individual holds
a baccalaureate or more advanced degree in a field related to
each course to be taught and:
(1) is certified as a classroom teacher under Subchapter B,
Chapter 21, Education Code; or
(2) obtains a school district teaching permit under Section
21.055, Education Code.
Added by Acts 1999, 76th Leg., ch. 637, Sec. 2, eff. Aug. 30,
1999.
Sec. 31.037. PERFORMANCE OF TEACHING SERVICES BY EMPLOYEE IN
LIEU OF PAYMENT OF SCHOOL TAXES ON PROPERTY OF BUSINESS ENTITY.
(a) The governing body of a school district by resolution may
authorize a corporation or other business entity to permit a
qualified individual employed by the business entity to perform
teaching services in a high school or a junior high school for
the school district in lieu of paying taxes imposed by the
district on property owned by the business entity.
(b) The governing body of the school district shall determine:
(1) the number of business entities that will be eligible for a
tax credit under this section;
(2) the courses that an employee of the business entity may
teach for the district under this section; and
(3) the amount of the tax credit that a business entity may
earn.
(c) The governing body shall require that each business entity
permitted to provide an employee to perform teaching services for
the district under this section execute a contract with the
district. The contract must be executed before the delinquency
date and must:
(1) specify:
(A) the course or courses that the employee will teach for the
district;
(B) the high school or junior high school of the district where
the employee will perform the teaching services;
(C) the semester in which the employee will perform the teaching
services; and
(D) the amount of the tax credit that the business entity will
receive on successful completion of the contractual obligations
of the business entity and its employee; and
(2) set out or describe the provisions of Subsections (d)-(h).
(d) For each course taught for the entire school semester by an
employee of the business entity for the school district, the
business entity is entitled to a maximum credit of $500 against
the taxes imposed, except that if the employee teaches a course
for which a student receives a full year's credit for one
semester, the business entity is entitled to a maximum credit of
$1,000 for each such course taught for one semester by the
employee.
(e) The district shall terminate the contract if:
(1) the employee fails to perform the teaching services; or
(2) the district determines that the teaching services of the
employee of the business entity are unsatisfactory.
(f) If the contract is terminated under Subsection (e), on the
termination date the district may grant the business entity a
portion of the tax credit based on the portion of the teaching
services performed.
(g) While performing teaching services for a school district,
the employee of the business entity:
(1) is not an employee of the district; and
(2) is not entitled to any benefit, including workers'
compensation coverage, that the district provides to an employee
of the district.
(h) An individual may not perform teaching services for which a
business entity receives a tax credit under this section if the
individual enters into a contract with the same school district
to provide teaching services for a tax credit for the same tax
year under Section 31.036.
(i) An individual is qualified to perform teaching services for
a school district under this section only if the individual holds
a baccalaureate or more advanced degree in a field related to the
course to be taught and:
(1) is certified as a classroom teacher under Subchapter B,
Chapter 21, Education Code; or
(2) obtains a school district teaching permit under Section
21.055, Education Code.
Added by Acts 1999, 76th Leg., ch. 637, Sec. 2, eff. Aug. 30,
1999.
Sec. 31.04. POSTPONEMENT OF DELINQUENCY DATE. (a) If a tax
bill is mailed after January 10, the delinquency date provided by
Section 31.02 of this code is postponed to the first day of the
next month that will provide a period of at least 21 days after
the date of mailing for payment of taxes before delinquent unless
the taxing unit has adopted the discounts provided by Section
31.05(c) of this code, in which case the delinquency date is
determined by Subsection (d) of this section.
(a-1) If a tax bill is mailed that includes taxes for one or
more preceding tax years because the property was erroneously
omitted from the tax roll in those tax years, the delinquency
date provided by Section 31.02 is postponed to February 1 of the
first year that will provide a period of at least 180 days after
the date the tax bill is mailed in which to pay the taxes before
they become delinquent.
(b) If the delinquency date is postponed as provided by this
section, the assessor who mails the bills shall notify the
governing body of each taxing unit whose taxes are included in
the bills of the postponement.
(c) A payment option provided by Section 31.03 of this code or a
discount adopted under Section 31.05(b) of this code does not
apply to taxes that are calculated too late for it to be
available.
(d) If a taxing unit mails its tax bills after September 30 and
adopts the discounts provided by Section 31.05(c) of this code,
the delinquency date is postponed to the first day of the next
month following the fourth full calendar month following the date
the tax bills were mailed.
(e) If the delinquency date for a tax is postponed under
Subsection (a) or (a-1), that postponed delinquency date is the
date on which penalties and interest begin to be incurred on the
tax as provided by Section 33.01.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 16, ch. 5, Sec. 2, eff.
March 14, 1983; Acts 1985, 69th Leg., ch. 753, Sec. 1, eff. June
14, 1985; Acts 2003, 78th Leg., ch. 151, Sec. 1, eff. Sept. 1,
2003.
Sec. 31.05. DISCOUNTS. (a) The governing body of a taxing unit
may adopt the discounts provided by Subsection (b) or Subsection
(c), or both, in the manner required by law for official action
by the body. The discounts, if adopted, apply only to that
taxing unit's taxes. If a taxing unit adopts both discounts
under Subsections (b) and (c), the discounts adopted under
Subsection (b) apply unless the tax bills for the unit are mailed
after September 30, in which case only the discounts under
Subsection (c) apply. A taxing unit that collects taxes for
another taxing unit that adopts the discounts may prepare and
mail separate tax bills on behalf of the adopting taxing unit and
may charge an additional fee for preparing and mailing the
separate tax bills and for collecting the taxes imposed by the
adopting taxing unit. If under an intergovernmental contract a
county assessor-collector collects taxes for a taxing unit that
adopts the discounts, the county assessor-collector may terminate
the contract if the county has adopted a discount policy that is
different from the discount policy adopted by the adopting taxing
unit.
(b) A taxing unit may adopt the following discounts to apply
regardless of the date on which it mails its tax bills:
(1) three percent if the tax is paid in October or earlier;
(2) two percent if the tax is paid in November; and
(3) one percent if the tax is paid in December.
(c) A taxing unit may adopt the following discounts to apply
when it mails its tax bills after September 30:
(1) three percent if the tax is paid before or during the next
full calendar month following the date on which the tax bills
were mailed;
(2) two percent if the tax is paid during the second full
calendar month following the date on which the tax bills were
mailed; and
(3) one percent if the tax is paid during the third full
calendar month following the date on which the tax bills were
mailed.
(d) Repealed by Acts 1983, 68th Leg., p. 4876, ch. 862, Sec. 3,
eff. Sept. 1, 1983.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 167, ch. 13,
Sec. 124, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 16, ch. 5,
Sec. 2, eff. March 14, 1983; Acts 1983, 68th Leg., pp. 4875,
4876, ch. 862, Sec. 2, 3, eff. Sept. 1, 1983.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 9, eff. September 1, 2005.
Sec. 31.06. MEDIUM OF PAYMENT. (a) Except as provided by
Section 31.061, taxes are payable only as provided by this
section. A collector shall accept United States currency or a
check or money order in payment of taxes and shall accept payment
by credit card or electronic funds transfer.
(b) Acceptance by a collector of a check or money order or of
payment by credit card constitutes payment of a tax as of the
date of acceptance if the check, money order, or credit card
invoice is duly paid or honored. If the check, money order, or
credit card invoice is not duly paid or honored, the collector
shall deliver written notice of nonpayment to the person who
attempted payment by check, money order, or credit card. Until
payment is made in full by cash or by a check, money order, or
credit card that is duly paid or honored, the lien securing
payment of the tax remains in effect, whether or not the person
receives notice of nonpayment.
(c) If a tax is paid by 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.
(d) If a check or money order accepted in payment of taxes or
the invoice for a payment of taxes by credit card is not duly
paid or honored, the amount of any charge against the taxing unit
for processing the check, order, or credit card invoice is added
to the amount of tax due in the same manner as penalties and
interest are added for taxes that are delinquent. The tax lien on
the property also secures payment of the amount of the charge.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 167, ch. 13,
Sec. 125, eff. Jan. 1, 1982; Acts 1989, 71st Leg., ch. 737, Sec.
1, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 697, Sec. 1,
eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 606, Sec. 1, eff.
June 18, 1999; Acts 2001, 77th Leg., ch. 529, Sec. 2, eff. June
11, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1328, Sec. 88, eff. September 1, 2009.
Sec. 31.061. PAYMENT OF TAXES ASSESSED AGAINST REAL PROPERTY BY
CONVEYANCE TO TAXING UNIT OF PROPERTY. (a) An owner of real
property may, subject to the approval of the governing body of
all of the taxing units, by deed convey the property to the
taxing unit that is owed the largest amount of the taxes,
penalties, and interest assessed against the property in payment
of the taxes, including delinquent taxes, penalties, and interest
assessed against the property by each taxing unit. The taxing
unit acquiring the property holds title to the property on behalf
of each taxing unit. The lien of each taxing unit on the property
conveyed is extinguished at the time of the conveyance. The
taxing unit acquiring the property may, subject to the approval
of the governing body of another taxing unit, by deed convey the
property to that taxing unit. The taxing unit acquiring the
property holds title to the property on behalf of each taxing
unit.
(b) A taxing unit acquiring property under this section may sell
the property. The sale may be conducted in a manner provided by
Section 34.05. If the taxing unit sells the property within six
months after the date the owner conveys the property, the taxing
unit shall pay to each taxing unit its proportionate share of the
sale proceeds according to each taxing unit's share of the total
amount of the taxes, penalties, and interest owed at the time of
the acquisition.
(c) A taxing unit that does not sell property acquired under
this section within six months after the date the owner conveys
the property shall pay to each taxing unit its proportionate
share, as determined under Subsection (b), of the appraised
market value of the property as shown on the most recent tax
roll, less the value of all encumbrances burdening the property.
On making the payment provided by this subsection, the taxing
unit owns the property outright and not on behalf of each taxing
unit. The period during which a taxing unit may hold title to the
property on behalf of each taxing unit may be extended subject to
the approval of the governing body of each taxing unit.
(d) The collector shall credit against the taxes, penalties, and
interest owed each taxing unit:
(1) the taxing unit's share, as determined under Subsection (b),
of the sale price if the property is sold within six months after
the date the owner conveys the property; or
(2) the taxing unit's share, as determined under Subsection (b),
of the appraised market value of the property as shown on the
most recent tax roll, less the value of all encumbrances
burdening the property, if the property is not sold within six
months after the date the owner conveys the property.
(e) The owner remains personally liable to each taxing unit to
the extent the amount of the taxes, penalties, and interest owed
each taxing unit exceeds the amount credited under Subsection
(d). The owner is entitled to a refund from each taxing unit to
the extent the amount credited under Subsection (d) exceeds the
amount of the taxes, penalties, and interest owed the taxing
unit.
(f) A conveyance of property to a taxing unit under this section
is voidable by the taxing unit at any time that the taxing unit
owns the property and determines that the condition of the
property on the date the owner conveyed it was or may have been
in violation of a federal or state law, regulation, rule, or
order. If the taxing unit voids the conveyance:
(1) the taxing unit shall execute a quitclaim deed of the
property to the owner, file the deed in the county records, and
give notice of the deed and its filing to the owner;
(2) the collector shall remove the credit against the taxes,
penalties, and interest owed each taxing unit made under this
section;
(3) a taxing unit that does not acquire the property shall
refund the payment made to it by the taxing unit that acquires
the property and reinstate the taxes, penalties, and interest
owed the taxing unit; and
(4) the lien of each taxing unit is reinstated as of the date it
originally attached.
(g) Repealed by Acts 1997, 75th Leg., ch. 1111, Sec. 8, eff.
Sept. 1, 1997.
Added by Acts 1993, 73rd Leg., ch. 697, Sec. 2, eff. Sept. 1,
1993. Amended by Acts 1997, 75th Leg., ch. 1111, Sec. 1, 8, eff.
Sept. 1, 1997.
Sec. 31.07. CERTAIN PAYMENTS ACCEPTED. (a) A person may pay
the tax imposed on any one property without simultaneously paying
taxes imposed on other property he owns.
(b) A collector shall accept payment of the tax imposed on a
property by a taxing unit that has adopted the discounts under
Section 31.05 of this code separately from taxes imposed on that
property by other taxing units using the same collector, even if
the taxes are included in the same bill. The collector may adopt
a policy of accepting separate payments in other circumstances.
If the tax paid is included in the same bill as other taxes that
are not paid, the collector shall send a revised bill or receipt
to reflect the tax payment, if a discount applies to the payment,
and may send a revised bill or receipt to reflect the tax payment
in other circumstances. The sending of a revised bill does not
affect the date on which the unpaid taxes become delinquent.
(c) A collector may adopt a policy of accepting partial payments
of property taxes. A payment option provided by Section 31.03 of
this code or a discount adopted under Section 31.05 of this code
does not apply to any portion of a partial payment. If a
collector accepts a partial payment on a tax bill that includes
taxes for more than one taxing unit, the collector shall allocate
the partial payment among all the taxing units included in the
bill in proportion to the amount of tax included in the bill for
each taxing unit, unless the collector under Subsection (b) has
adopted a policy of accepting payments of a taxing unit's taxes
separate from the taxes of other taxing units included in the
same bill and the taxpayer directs that the partial payment be
allocated in specific amounts to one or more specific taxing
units. Acceptance of a partial payment does not affect the date
that the tax becomes delinquent, but the penalties and interest
provided by Section 33.01 of this code are incurred only by the
portion of a tax that remains unpaid on the date the tax becomes
delinquent.
(d) Notwithstanding Subsection (c), a collector shall accept a
partial payment of property taxes on a tax bill that includes
taxes for more than one taxing unit if one or more of the taxing
units has adopted the discounts under Section 31.05 of this code,
the taxpayer directs that the partial payment be allocated first
to the payment of the taxes owed one or more of the taxing units
that have adopted the discounts, and the amount of the payment is
equal to or greater than the amount of the taxes owed the taxing
units designated by the taxpayer.
Acts 1979, 66th Leg., p. 2286, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, Sec. 21,
eff. Aug. 29, 1983; Acts 1985, 69th Leg., ch. 493, Sec. 1, eff.
June 12, 1985; Acts 1989, 71st Leg., ch. 745, Sec. 2, eff. Sept.
1, 1989. Amended by Acts 1993, 73rd Leg., ch. 539, Sec. 1, eff.
Sept. 1, 1993.
Sec. 31.071. CONDITIONAL PAYMENTS. (a) The collector of a
taxing unit shall accept conditional payments of taxes before the
delinquency date for property taxes that are subject to a pending
challenge or protest.
(b) A property owner whose property is subject to a pending
protest or challenge may pay the tax due on the amount of value
of the property involved in the pending action that is not in
dispute or the amount of tax paid on the property in the
preceding year, whichever is greater, but not to exceed the
amount of tax that would be due on the appraised value that is
subject to protest or challenge. The collector of the taxing unit
shall provide the property owner with a temporary receipt of
taxes paid under this section.
(c) If the property is no longer subject to a challenge,
protest, or appeal at any time before the delinquency date, the
collector shall apply the amount paid by the property owner under
this section to the tax imposed on the property and shall refund
the remainder, if any, to the property owner. If the property is
still subject to an appeal on the last working day before the
delinquency date, or at an earlier date if so requested by the
property owner, the collector shall apply the amount paid under
this section to the payment required by Section 42.08(b) of this
code and shall retain the remainder, if any, until the appeal is
completed. When the appeal is completed, the collector shall
apply any amount retained under this section to the tax
ultimately imposed on the property that is not covered by the
payment under Section 42.08(b) and shall refund the remainder, if
any, to the property owner.
Added by Acts 1987, 70th Leg., ch. 999, Sec. 1, eff. Aug. 31,
1987.
Sec. 31.072. ESCROW ACCOUNTS. (a) The collector for a taxing
unit may enter a contract with a property owner under which the
property owner deposits money in an escrow account maintained by
the collector to provide for the payment of property taxes
collected by the collector on any property the person owns.
(b) A contract may not be made before October 1 of the year
preceding the tax year for which the account is established. The
collector may agree to establish a combined account for more than
one item of property having the same owner on the property
owner's request. If a collector collects taxes for more than one
taxing unit, an account must apply to taxes on the affected
property for each of the taxing units.
(c) A contract under this section must require the property
owner to make monthly deposits to the escrow account until the
amount set in the contract under Subsection (d) of this section
accrues in the account or until the tax bill for the property is
prepared, whichever occurs earlier.
(d) On request by a property owner to establish an escrow
account under this section, the collector shall estimate the
amount of taxes to be imposed on the property by the affected
taxing units in that year. A contract to establish an escrow
account must provide for deposits that would provide, as of the
date the collector estimates the tax bill for the property will
be prepared, a total deposit that is not less than the amount of
taxes estimated by the collector or the amount of taxes imposed
on the property by the affected taxing units in the preceding
year, whichever is less. The collector may agree to a deposit of
a greater amount on the property owner's request.
(e) The county tax assessor-collector shall maintain the escrow
account in the county depository. Any other collector shall
maintain the escrow account in the depository of the taxing unit
or other entity that employs the collector. The collector is not
required to maintain a separate account in the depository for
each escrow account but shall maintain separate records for each
escrow account.
(f) The property owner may withdraw from the collector the money
the owner deposited in an escrow account only if the withdrawal
is made before the date the tax bill is prepared or October 1 of
the tax year, whichever occurs earlier. On and after that date
and until the taxes are paid, the collector must agree to a
withdrawal by the taxpayer. The property owner may not withdraw
less than the total amount deposited in the escrow account.
(g) When the tax bill is prepared for property for which an
escrow account is established, the collector shall apply the
money in the account to the taxes imposed and deliver a tax
receipt to the taxpayer together with a refund of any amount in
the account in excess of the amount of taxes paid. If the amount
in the escrow account is not sufficient to pay the taxes in full,
the collector shall apply the money to the taxes and deliver to
the taxpayer a tax receipt for the partial payment and a tax bill
for the unpaid amount. If the escrow account applies to more than
one taxing unit or to more than one item of property, the
collector shall apply the amount to each taxing unit or item of
property in proportion to the amount of taxes imposed unless the
contract provides otherwise.
(h) Notwithstanding Subsection (a), if the property owner
requesting a collector to establish an escrow account under this
section is a disabled veteran as defined by Section 11.22 or a
recipient of the Purple Heart, the Congressional Medal of Honor,
the Bronze Star Medal, the Silver Star, the Legion of Merit, or a
service cross awarded by a branch of the United States armed
forces and the escrow account is to be used solely to provide for
the payment of property taxes collected by the collector on the
property owner's residence homestead, the collector shall enter
into a contract with the property owner under this section.
(i) Notwithstanding Subsection (a), if the property owner
requesting a collector to establish an escrow account under this
section is the owner of a manufactured home and the escrow
account is to be used solely to provide for the payment of
property taxes collected by the collector on the property owner's
manufactured home, the collector shall enter into a contract with
the property owner under this section.
Added by Acts 1989, 71st Leg., ch. 737, Sec. 2, eff. Aug. 28,
1989.
Amended by:
Acts 2005, 79th Leg., Ch.
85, Sec. 1, eff. May 17, 2005.
Acts 2007, 80th Leg., R.S., Ch.
863, Sec. 71, eff. January 1, 2008.
Sec. 31.073. RESTRICTED OR CONDITIONAL PAYMENTS PROHIBITED. A
restriction or condition placed on a check in payment of taxes,
penalties, or interest by the maker that limits the amount of
taxes, penalties, or interest owed to an amount less than that
stated in the tax bill or shown by the tax collector's records is
void unless the restriction or condition is authorized by this
code.
Added by Acts 1993, 73rd Leg., ch. 539, Sec. 2, eff. Sept. 1,
1993.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 10, eff. September 1, 2005.
Sec. 31.075. TAX RECEIPT. (a) At the request of a property
owner or a property owner's agent, the collector for a taxing
unit shall issue a receipt showing the taxable value and the
amount of tax imposed by the unit on the property in one or more
tax years for which the information is requested, the tax rate
for each of those tax years, and the amount of tax paid in each
of those years. The receipt must describe the property in the
manner prescribed by the comptroller. If the amount of the tax
for the current year has not been calculated when the request is
made, the collector shall on request issue to the property owner
or agent a statement indicating that taxes for the current year
have not been calculated.
(b) In any judicial proceeding, including a suit to collect
delinquent taxes under Chapter 33 of this code, a tax receipt
issued under this section that states that a tax has been paid
constitutes prima facie evidence that the tax has been paid as
stated by the receipt.
Added by Acts 1987, 70th Leg., ch. 52, Sec. 1, eff. May 6, 1987.
Amended by Acts 1991, 72nd Leg., ch. 836, Sec. 5.5, eff. Aug. 26,
1991; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 48, eff. Sept.
1, 1991.
Amended by:
Acts 2005, 79th Leg., Ch.
1154, Sec. 2, eff. September 1, 2005.
Sec. 31.08. TAX CERTIFICATE. (a) At the request of any person,
a collector for a taxing unit shall issue a certificate showing
the amount of delinquent taxes, penalties, interest, and any
known costs and expenses under Section 33.48 due the unit on a
property according to the unit's current tax records. If the
collector collects taxes for more than one taxing unit, the
certificate must show the amount of delinquent taxes, penalties,
interest, and any known costs and expenses under Section 33.48
due on the property to each taxing unit for which the collector
collects the taxes. The collector shall charge a fee not to
exceed $10 for each certificate issued. The collector shall pay
all fees collected under this section into the treasury of the
taxing unit that employs the collector.
(b) Except as provided by Subsection (c) of this section, if a
person transfers property accompanied by a tax certificate that
erroneously indicates that no delinquent taxes, penalties, or
interest are due a taxing unit on the property or that fails to
include property because of its omission from an appraisal roll
as described under Section 25.21, the unit's tax lien on the
property is extinguished and the purchaser of the property is
absolved of liability to the unit for delinquent taxes,
penalties, or interest on the property or for taxes based on
omitted property. The person who was liable for the tax for the
year the tax was imposed or the property was omitted remains
personally liable for the tax and for any penalties or interest.
(c) A tax certificate issued through fraud or collusion is void.
Acts 1979, 66th Leg., p. 2286, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 662, ch. 149, Sec. 1,
eff. Sept. 1, 1983; Acts 1987, 70th Leg., ch. 105, Sec. 1, eff.
Sept. 1, 1987.
Amended by:
Acts 2005, 79th Leg., Ch.
846, Sec. 2, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1126, Sec. 11, eff. September 1, 2005.
Sec. 31.081. PROPERTY TAX WITHHOLDING ON PURCHASE OF BUSINESS OR
INVENTORY. (a) This section applies only to a person who
purchases a business, an interest in a business, or the inventory
of a business from a person who is liable under this title for
the payment of taxes imposed on personal property used in the
operation of that business.
(b) The purchaser shall withhold from the purchase price an
amount sufficient to pay all of the taxes imposed on the personal
property of the business, plus any penalties and interest
incurred, until the seller provides the purchaser with:
(1) a receipt issued by each appropriate collector showing that
the taxes due the applicable taxing unit, plus any penalties and
interest, have been paid; or
(2) a tax certificate issued under Section 31.08 stating that no
taxes, penalties, or interest is due the applicable taxing unit.
(c) A purchaser who fails to withhold the amount required by
this section is liable for that amount to the applicable taxing
units to the extent of the value of the purchase price, including
the value of a promissory note given in consideration of the sale
to the extent of the note's market value on the effective date of
the purchase, regardless of whether the purchaser has been
required to make any payments on that note.
(d) The purchaser may request each appropriate collector to
issue a tax certificate under Section 31.08 or a statement of the
amount of the taxes, penalties, and interest that are due to each
taxing unit for which the collector collects taxes. The collector
shall issue the certificate or statement before the 10th day
after the date the request is made. If a collector does not
timely provide or mail the certificate or statement to the
purchaser, the purchaser is released from the duties and
liabilities imposed by Subsections (b) and (c) in connection with
taxes, penalties, and interest due the applicable taxing unit.
(e) An action to enforce a duty or liability imposed on a
purchaser by Subsection (b) or (c) must be brought before the
fourth anniversary of the effective date of the purchase. An
action to enforce the purchaser's duty or liability is subject to
a limitation plea by the purchaser as to any taxes that have been
delinquent at least four years as of the date the collector
issues the statement under Subsection (d).
(f) This section does not release a person who sells a business
or the inventory of a business from any personal liability
imposed on the person for the payment of taxes imposed on the
personal property of the business or for penalties or interest on
those taxes.
(g) For purposes of this section:
(1) a person is considered to have purchased a business if the
person purchases the name of the business or the goodwill
associated with the business; and
(2) a person is considered to have purchased the inventory of a
business if the person purchases inventory of a business, the
value of which is at least 50 percent of the value of the total
inventory of the business on the date of the purchase.
Added by Acts 1999, 76th Leg., ch. 1481, Sec. 10, eff. Jan. 1,
2000.
Sec. 31.10. REPORTS AND REMITTANCES OF OTHER TAXE