HB3473 - Relating to the electronic payment of ad valorem taxes; authorizing a fee.

  89R4166 DRS-F     By: Vasut H.B. No. 3473       A BILL TO BE ENTITLED   AN ACT   relating to the electronic payment of ad valorem taxes; authorizing   a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 31.06, Tax Code, is amended by amending   Subsections (a) and (c) and adding Subsection (a-1) to read as   follows:          (a)   In this section, "electronic payment" has the meaning   assigned by Section 31.062.           (a-1)   Except as provided by Section 31.061, taxes are   payable only as provided by this section.  Except as provided by   Subsection (e), a collector shall accept United States currency or   a check or money order in payment of taxes and shall accept any form   of electronic payment of taxes made in the manner provided by   Section 31.062 [ payment by credit card or electronic funds   transfer ].          (c)  If a tax is paid by an electronic payment [ 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.          SECTION 2.  Chapter 31, Tax Code, is amended by adding   Section 31.062 to read as follows:           Sec.   31.062.     ELECTRONIC TAX PAYMENTS. (a)   In this section,   "electronic payment" means a payment made by credit card, debit   card, electronic check, electronic funds transfer, or automated   clearinghouse payment.           (b)     Each collector shall establish a procedure that allows a   property owner or a person designated by a property owner under   Section 1.111(f) to make any form of electronic payment of taxes and   receive confirmation of the submission of an electronic payment.           (c)     Each county assessor-collector shall prominently   display on the Internet website maintained by the county under   Section 26.16 the information necessary to make an electronic   payment of taxes to the collector for each taxing unit all or part   of the territory of which is located in the county.           (d)     If necessary to complete the applicable form of   electronic payment, a collector may require a property owner or a   person designated by a property owner under Section 1.111(f) to   provide:                 (1)  an e-mail address;                 (2)  a financial account number;                 (3)     sufficient electronic remittance information for   the collector to apply an electronic payment to the property   owner's account; and                 (4)     any other information the collector determines is   necessary to properly receive, process, and confirm the receipt of   an electronic payment made by the property owner or the person   designated by the owner.           (e)     An electronic payment of taxes by a property owner or a   person designated by a property owner under Section 1.111(f) to a   collector is timely if the payment is made in the proper manner on   or before the date on which the payment is due.           (f)     An electronic signature that is included on or with an   electronic payment of taxes made under this section is considered   to be a digital signature for purposes of Section 2054.060,   Government Code, and that section applies to the electronic   signature.          SECTION 3.  Section 33.011(h), Tax Code, is amended to read   as follows:          (h)  The governing body of a taxing unit shall waive   penalties and interest on a delinquent tax if[ :                [ (1)     the   tax is payable by electronic funds transfer   under an agreement entered into under Section 31.06(a); and                [ (2) ]  the taxpayer submits evidence sufficient to show   that:                 (1)  [ (A) ]  the taxpayer attempted to pay the tax by   electronic payment under Section 31.062 [ funds transfer ] in the   proper manner before the delinquency date;                 (2)  [ (B) ]  the taxpayer's failure to pay the tax before   the delinquency date was caused by an error in the transmission of   the payment [ funds ]; and                 (3)  [ (C) ]  the tax was properly paid by electronic   payment [ funds transfer ] or otherwise not later than the 21st day   after the date the taxpayer knew or should have known of the   delinquency.          SECTION 4.  The changes in law made by this Act apply only to   a tax year that begins on or after the effective date of this Act.          SECTION 5.  (a)  The officer or employee responsible for   collecting property taxes for a taxing unit located wholly or   primarily in a county with a population of 120,000 or more shall   comply with Section 31.062, Tax Code, as added by this Act,   beginning with the 2026 tax year.          (b)  The officer or employee responsible for collecting   property taxes for a taxing unit located wholly or primarily in a   county with a population of less than 120,000 shall comply with   Section 31.062, Tax Code, as added by this Act, beginning with the   2027 tax year.          SECTION 6.  This Act takes effect January 1, 2026.