Texas Statutes
Chapter 31 - Collections
Section 31.05. Discounts

Sec. 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.
(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 The rescission of a discount takes effect in the tax year following the year in which the discount is rescinded.
Acts 1979, 66th Leg., p. 2285, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 167, ch. 13, Sec. 124, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 16, ch. 5, Sec. 2, eff. March 14, 1983; Acts 1983, 68th Leg., pp. 4875, 4876, ch. 862, Sec. 2, 3, eff. Sept. 1, 1983.
Amended by:
Acts 2005, 79th Leg., Ch. 1126 (H.B. 2491), Sec. 9, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 999 (H.B. 2169), Sec. 1, eff. June 17, 2011.

Structure Texas Statutes

Texas Statutes

Tax Code

Title 1 - Property Tax Code

Subtitle E - Collections and Delinquency

Chapter 31 - Collections

Section 31.01. Tax Bills

Section 31.02. Delinquency Date

Section 31.03. Split Payment of Taxes

Section 31.031. Installment Payments of Certain Homestead Taxes

Section 31.032. Installment Payments of Taxes on Property in Disaster Area or Emergency Area That Has Been Damaged as a Result of Disaster or Emergency

Section 31.033. Installment Payments of Taxes on Property in Disaster Area or Emergency Area That Has Not Been Damaged as a Result of Disaster or Emergency

Section 31.035. Performance of Service in Lieu of Payment of Taxes on Homestead of Elderly Person

Section 31.036. Performance of Teaching Services in Lieu of Payment of School Taxes on Homestead

Section 31.037. Performance of Teaching Services by Employee in Lieu of Payment of School Taxes on Property of Business Entity

Section 31.04. Postponement of Delinquency Date

Section 31.05. Discounts

Section 31.06. Medium of Payment

Section 31.061. Payment of Taxes Assessed Against Real Property by Conveyance to Taxing Unit of Property

Section 31.07. Certain Payments Accepted

Section 31.071. Conditional Payments

Section 31.072. Escrow Accounts

Section 31.073. Restricted or Conditional Payments Prohibited

Section 31.075. Tax Receipt

Section 31.08. Tax Certificate

Section 31.081. Property Tax Withholding on Purchase of Business or Inventory

Section 31.10. Reports and Remittances of Other Taxes

Section 31.11. Refunds of Overpayments or Erroneous Payments

Section 31.111. Refunds of Duplicate Payments

Section 31.112. Refunds of Payments Made to Multiple Like Taxing Units

Section 31.115. Payment of Tax Under Protest

Section 31.12. Payment of Tax Refunds; Interest