Texas Tax Code 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.
Terms Used In Texas Tax Code 31.05
- Contract: A legal written agreement that becomes binding when signed.
- Month: means a calendar month. See Texas Government Code 312.011
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Tax year: means the calendar year. See Texas Tax Code 1.04
- Taxing unit: means a county, an incorporated city or town (including a home-rule city), a school district, a special district or authority (including a junior college district, a hospital district, a district created by or pursuant to the Water Code, a mosquito control district, a fire prevention district, or a noxious weed control district), or any other political unit of this state, whether created by or pursuant to the constitution or a local, special, or general law, that is authorized to impose and is imposing ad valorem taxes on property even if the governing body of another political unit determines the tax rate for the unit or otherwise governs its affairs. See Texas Tax Code 1.04
- Year: means 12 consecutive months. See Texas Government Code 311.005
(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) The governing body of a taxing unit may rescind a discount adopted by the governing body in the manner required by law for official action by the body. The rescission of a discount takes effect in the tax year following the year in which the discount is rescinded.