HB 1597

83(R) - 2013

Vote Recommendation

  • Negative
  • Neutral
  • Positive
  • Neutral
  • Neutral


Naomi Gonzalez

Bill Caption

Relating to installment agreements for the payment of delinquent ad valorem taxes.

Fiscal Notes

No significant fiscal implication to the State is anticipated

Bill Analysis

Summary: Current law allows tax collectors to enter into installment agreements with people delinquent in property taxes. HB 1597 attempts to facilitate the ability of property owners delinquent in property tax payments to enter into property tax payment installment plans with taxing unit officials. There would be certain repercussions for those who miss an installment payment, such as interest charged on the missed payment. HB 1597 would also forbid mortgage servicers from foreclosing on a home of a property owner that has entered into a payment installment plan with a tax collector

Analysis: Property tax payment installment plans provide a more lenient process for people to pay their property taxes, which promotes their property rights. so long as taxes are eventually paid, this can help struggling people to pay their allotted property taxes.

HB 1597, however, imposes a regulation on mortgage lenders that will keep mortgage lenders from foreclosing on a property owner’s property once they recieve notice that a taxpayer is having trouble paying their property taxes and is entering into an installment agreement. Mortgage lenders see property tax delinquency as a sign that a property owner is at risk of defaulting on mortgage payments,and they may also lose out on funds paid by property owners a bank that will go first to property tax. Mortgage servicers should certainly be encouraged to consider a property owner’s decision to enter into property tax installment plans as reason to not initiate foreclosure, but they should not be required by government to do so.

HB 1597 has a positive impact for property tax owners, but it interferes with mortgage servicer's interest in recouping payment before a person defaults. Because of this conflict in our principles, TPPA is neutral on HB 1597.