bill making tax collectors take any electronic payment

The text as introduced · 826 words

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.