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Title 1. Property Tax Code
Subtitle E. Collections and Delinquency

Chapter 31. Collections

Sec. 31.01. Tax Bills.
Sec. 31.02. Delinquency Date.
Sec. 31.03. Split Payment of Taxes.
Sec. 31.031. Installment Payments of Certain Homestead Taxes.
Sec. 31.032. Installment Payments of Taxes on Property In Disaster Area.
Sec. 31.035. Performance of Service in Lieu of Payment of Taxes on Homestead of Elderly Person.
Sec. 31.036. Performance of Teaching Services in Lieu of Payment of School Taxes on Homestead.
Sec. 31.037. Performance of Teaching Services by Employee in Lieu of Payment of School Taxes on Property of Business Entity.
Sec. 31.04. Postponement of Delinquency Date.
Sec. 31.05. Discounts.
Sec. 31.06. Medium of Payment.
Sec. 31.061. Payment of Taxes Assessed Against Real Property by Conveyance to Taxing Unit of Property.
Sec. 31.07. Certain Payments Accepted.
Sec. 31.071. Conditional Payments.
Sec. 31.072. Escrow Accounts.
Sec. 31.073. Restricted or Conditional Payments Prohibited.
Sec. 31.075. Tax Receipt.
Sec. 31.08. Tax Certificate.
Sec. 31.081. Property Tax Withholding on Purchase of Business or Inventory.
Sec. 31.09. Repealed.
Sec. 31.10. Reports and Remittances of Other Taxes.
Sec. 31.11. Refunds of Overpayments or Erroneous Payments.
Sec. 31.111. Refunds of Duplicate Payments..
Sec. 31.115. Payment of Tax Under Protest.
Sec. 31.12. Payment of Tax Refunds; Interest.

Sec. 31.01. Tax Bills.

(a) Except as provided by Subsection (f), 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 or 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 and must 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; and

(11) include any other information required by the comptroller.

(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.

(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.

(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.

Amended by 1981 Tex. Laws, p. 2359, ch. 581, Sec. 3; amended by 1981 Tex. Laws (1st C.S.), p. 166, ch. 13, Sec. 122; amended by 1983 Tex. Laws, p. 15, ch. 5, Sec. 1; amended by 1985 Tex. Laws, p. 2961, ch. 429, Sec. 1; amended by 1987 Tex. Laws, ch. 11, Sec. 13 and ch. 834, Sec. 1; amended by 1989 Tex. Laws, p. 192, ch. 2, Sec. 14.27 and 14.28, and p. 4047, ch. 969, Sec. 1; amended by 1991 Tex. Laws, p. 2897, ch. 836, Sec. 9.1; amended by 1991 Tex. Laws (2nd C.S.), p. 36, ch. 6, Sec. 47; amended by 1993 Tex. Laws, p. 3944, ch. 926, Sec. 2; amended by 1995 Tex. Laws, p. 5067, ch. 1012, Sec. 2; amended by 1997 Tex. Laws, p. 2854, ch. 906, Sec. 1, and p. 3913, ch. 1039, Sec. 32; amended by 1999 Tex. Laws, p. 3043, ch. 547, Sec. 1; amended by 1999 Tex. Laws, p. 3196, ch. 631, Sec. 8.

Cross References:

Assessors and collectors, generally, see ch. 6, subch. B.
Current tax bill, see Rule Sec. 9.3038.
Delivery of tax bill to fiduciary, see Sec. 1.11.
Calculation of sales and use tax adjustment, see Sec. 26.041.
Calculation of tax and omitted property, see Sec. 26.09.
Corrected and supplemental tax bills due to correction of tax roll, see Sec. 26.l5(e) & (f).
Corrected tax bills because of successful rollback, see Sec. 26.07.
Statement of additional taxes due on agricultural, timber or recreational lands, see Secs. 23.46, 23.55, 23.76, 23.86, & 23.9807.
Prorating taxes for loss of exemption, see Sec. 26.10.
Prorating taxes for acquisition by government, see Sec. 26.11.
Prorating taxes for acquisition by charitable organization, see Sec. 26.111.
Prorating taxes for qualification for over-65 homestead exemptions, see Sec. 26.112.
Prorating taxes for acquisition by nonprofit organization, see Sec. 26.113.
Tax bills for units created during tax year, see Sec. 26.12.
Delinquency date determined when tax bill is mailed, see Sec. 31.04.
Refund of taxes, see Sec. 31.11.
Split payment of taxes, see Sec. 31.03.
Corrected and supplemental bills based on final determination of an appeal, see Sec. 42.42.

Notes:

Where bank paid taxes on its stock value under mistaken belief that tax was legal, bank could not recover refund under this section because the payment was neither erroneous nor an overpayment. The refund is barred under the voluntary payment rule. First Bank of Deer Park v. Deer Park Independent School District, 770 S.W.2d 849 (Tex. App.-Texarkana 1989).

Where school board refused to waive penalties and interest, taxpayer had no claim for refund under Sec. 31.01. Even if penalty and interest were illegally assessed, the voluntary payment rule barred right to refund. Sheldon v. Jasper Independent School District, 768 S.W.2d 884 (Tex. App.-Beaumont 1989).

Assessing taxes in dollars does not deprive a taxpayer of due process. Barclay v. Ochiltree Appraisal Review Board, 730 S.W.2d 878 (Tex. App.-Amarillo 1987, no writ).

Description of property in tax assessments must furnish within itself, or by reference to some other existing writing, means or data by which particular land may be identified with reasonable certainty. Hart v. Northside Independent School District, 498 S.W.2d 459 (Tex. Civ. App.-San Antonio 1973, writ ref'd n.r.e.).

The tax collector has no authority to collect the tax before he has obtained the proper assessment rolls and if he collects tax before the time set by law and fails to turn the taxes over, the taxpayer may still be liable. Orange County v. Texas & N.O.R. Co., 80 S.W. 670 (Tex. Civ. App. 1904).

Legislation effective September 1, 1995, expressly authorized car rental companies to disclose registration fees and property taxes to renters as a separate, identified charge. There is no legal prohibition prior to September 1, 1995 against the collection of a reimbursement charge by car rental companies. Tex. Att'y Gen. LO-97-013 (1997).

Consistent with the common law of agency, a state chartered savings and loan association or other mortgage lender is the authorized agent entitled to receive the original tax bill from the taxing unit when the deed of trust places the responsibility for paying the property taxes on the mortgage lender. Op. Tex. Att'y Gen. No. MW-503 (1982).

The State Property Tax Board may adopt a rule authorizing the county tax assessor-collector to defer assessing and collecting the state ad valorem tax until it amounts to five dollars per unit of property. Op. Tex. Att'y Gen. No. MW-147, (1980). (Note: The state ad valorem tax has been repealed.)

Sec. 31.015. Transferred to Section 33.011 in 1996.

Added by 1993 Tex. Laws, p. 326, ch. 171, Sec. 1; transferred by 1995 Tex. Laws, p. 3376, ch. 579, Sec. 11.

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 hostilities in the Persian Gulf 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:

(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 governor issues a proclamation that hostilities in the Persian Gulf have ended.

(c) "Eligible person" means a person on active military duty in this state on or before September 1, 1990, who was transferred out of this state as a result of hostilities in the Persian Gulf or a person in the reserve forces who was placed on active military duty on or after September 1, 1990, and who was transferred out of this state as a result of hostilities in the Persian Gulf.

(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 or before January 1, 1991, or acquired the interest by gift, devise, or inheritance after that date.

(g) When the hostilities in the Persian Gulf have ceased, the governor shall issue a proclamation stating that finding.

(h) For the purposes of this section, "hostilities in the Persian Gulf" refers to the military action of the United States taken to enforce resolutions of the United Nations relating to the invasion and occupation of Kuwait by the military forces of the Republic of Iraq.

Amended by 1991 Tex. Laws, p. 1438, ch. 381, Sec. 1.

Cross References:

Postponement of delinquency date, see Sec. 31.04.
Accrual of penalties and interest on delinquent taxes, see Sec. 33.01.
Split payment of taxes, see Sec. 31.03.
Late homestead exemption filing from delinquency date, see Sec. 11.431.
Protest of failure to give notice filed before delinquency date, see Sec. 41.44(c).
Substantial error correction motion filed before delinquency date, see Sec. 25.25(d).
Notice of delinquency, see Sec. 31.04.
Delinquent tax roll, see Sec. 33.03.
Suit to collect delinquent tax, see Sec. 33.41.
Forfeiture of remedy for failure to make payment before delinquency date, see Sec. 42.08.
Weekend or holiday, see Sec. 1.06.
Timeliness of action by mail, see Sec. 1.08.

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) 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.

Amended by 1981 Tex. Laws (1st C.S.), p. 167, ch. 13, Sec. 123; amended by 1983 Tex. Laws, p. 4827, ch. 851, Sec. 20; amended by 1983 Tex. Laws, p. 4875, ch. 862, Sec. 1.

Cross References:

Contracts for assessment and collection, see Sec. 6.24.
Delinquency date affected by split-payment option, see Sec. 3l.02.
Penalties and interest accrue on delinquent split payment, see Sec. 33.01(b).
Tax bill must explain split-payment option, see Sec. 31.01(c)(8).
Partial payments not allowed split-payment option, see Sec. 31.07.

Notes:

Construction of Section 33.07 that allows the penalty to be imposed against taxes delinquent on or after July 1 is contrary to the legislative will expressed by the plain language of Section 33.07 and ignores the rule that a statute imposing penalties must be strictly construed. A notice of delinquency must be sent no later than June 1 (30 days before July 1) to meet the 30-day notice requirement. Section 33.07 additional penalty may not be imposed against taxes that become delinquent on or after June 1 under Tax Code Sections 31.03, 31.031, 31.032, or 31.04. Op. Tex. Att'y Gen. No. DM-491 (1998). (In 1999, the 76th Texas Legislature passed HB 3549, adding Section 33.08 to provide for the penalty on taxes that go delinquent on or after June 1.)

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 12 percent and interest as provided by Section 33.01(c).

(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 1989 Tex. Laws, p. 3329, ch. 746, Sec. 1; amended by 1993 Tex. Laws, p. 326, ch. 171, Sec. 171; amended by 1995 Tex. Laws, p. 3252, ch. 510, Sec. 1.

Cross References:

Homestead exemptions, see Sec. 11.13.
Installment payments of delinquent taxes, see Sec. 33.02.
Partial payments, see Sec. 31.07(c).
Postponement of delinquency date, see Sec. 31.04.

Notes:

Construction of Section 33.07 that allows the penalty to be imposed against taxes delinquent on or after July 1 is contrary to the legislative will expressed by the plain language of Section 33.07 and ignores the rule that a statute imposing penalties must be strictly construed. A notice of delinquency must be sent no later than June 1 (30 days before July 1) to meet the 30-day notice requirement. Section 33.07 additional penalty may not be imposed against taxes that become delinquent on or after June 1 under Tax Code Sections 31.03, 31.031, 31.032, or 31.04. Op. Tex. Att'y Gen. No. DM-491 (1998). (In 1999, the 76th Texas Legislature passed HB 3549, adding Section 33.08 to provide for the penalty on taxes that go delinquent on or after June 1.)

Sec. 31.032. Installment Payments of Taxes on Property in Disaster Area.

(a) This section applies only to:

(1) real property that:

(A) is the residence homestead of the owner or consists of property that is used for residential purposes and that has fewer than five living units;

(B) is located in a disaster area; and

(C) has been damaged as a direct result of the disaster; and

(2) 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.

Added by 1995 Tex. Laws, p. 5102, ch. 1041, Sec. 1.

Cross References:

Comptroller rule on disaster payments, see Rule Sec. 9.3060.
Disaster defined, see Sec. 418.004, Government Code.
Disaster area defined, see Sec. 151.350, Government Code.
Installment payments of delinquent taxes, see Sec. 33.02.
Partial payments, see Sec. 31.07(c).
Postponement of delinquency date, see Sec. 31.04.

Notes:

Construction of Section 33.07 that allows the penalty to be imposed against taxes delinquent on or after July 1 is contrary to the legislative will expressed by the plain language of Section 33.07 and ignores the rule that a statute imposing penalties must be strictly construed. A notice of delinquency must be sent no later than June 1 (30 days before July 1) to meet the 30-day notice requirement. Section 33.07 additional penalty may not be imposed against taxes that become delinquent on or after June 1 under Tax Code Sections 31.03, 31.031, 31.032, or 31.04. Op. Tex. Att'y Gen. No. DM-491 (1998). (In 1999, the 76th Texas Legislature passed HB 3549, adding Section 33.08 to provide for the penalty on taxes that go delinquent on or after June 1.)

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 1999 Tex. Laws, p. 3205, ch. 637, Sec. 1.

Cross References:

Homestead exemptions, see Sec. 11.13.
Installment payments of delinquent taxes, see Sec. 33.02
Partial payments, see Sec. 31.07(c).
Postponement of delinquency date, see Sec. 31.04.

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 1999 Tex. Laws, p. 3206, ch. 637, Sec. 2.

Cross References:

Homestead exemptions, see Sec. 11.13.
Installment payments of delinquent taxes, see Sec. 33.02
Partial payments, see Sec. 31.07(c).
Postponement of delinquency date, see Sec. 31.04.

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 1999 Tex. Laws, p. 3207, ch. 637, Sec. 2.

Cross References:

Installment payments of delinquent taxes, see Sec. 33.02
Partial payments, see Sec. 31.07(c).
Postponement of delinquency date, see Sec. 31.04.

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.

(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) of this section, 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 of this code.

Amended by 1983 Tex. Laws, p. 16, ch. 5, Sec. 2; amended by 1985 Tex. Laws, p. 5395, ch. 753, Sec. 2.

Cross References:

Delinquency date generally, see Sec. 31.02.
Delinquency date must be recited in tax bill, see Sec. 3l.01(c)(7).
Delinquency date for timely mailed bills, see Sec. 31.02.
Discounts for early payment, see Sec. 31.05.
Postponement of delinquency for successful rollback election, see Sec. 26.07.
Correction of tax roll, see Sec. 26.15.
Weekend or holiday, see Sec. 1.06.
Timeliness of action by mail, see Sec. 1.08.

Notes:

The statutory requirement of Section 26.15(d) of preparing and mailing a corrected tax bill did not include postponing the delinquency date in Section 31.04(a), and the corrected tax bill did not void the original tax bill. Richardson Independent School District v. GE Capital Corporation, 58 S.W.3d 290 (Tex. App. - Dallas 2001, no pet.).

Construction of Section 33.07 that allows the penalty to be imposed against taxes delinquent on or after July 1 is contrary to the legislative will expressed by the plain language of Section 33.07 and ignores the rule that a statute imposing penalties must be strictly construed. A notice of delinquency must be sent no later than June 1 (30 days before July 1) to meet the 30-day notice requirement. Section 33.07 additional penalty may not be imposed against taxes that become delinquent on or after June 1 under Tax Code Sections 31.03, 31.031, 31.032, or 31.04. Op. Tex. Att'y Gen. No. DM-491 (1998). (In 1999, the 76th Texas Legislature passed HB 3549, adding Section 33.08 to provide for the penalty on taxes that go delinquent on or after June 1.)

February 1 is the delinquency date for taxes where bills cannot be mailed because the address of the taxpayer is unknown. These delinquent taxes accrue interest and penalties. Op. Tex. Att'y Gen. No. JM-1192 (1990)