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HomeMy WebLinkAboutR-2008-14 residents who sustained at least 25% damage to residential homestead property,from Hurricane Ike to pay ad valorem taxes on said property in quarterly installments ..- 12 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Al;lDroDriation Requested By: Michael Dolb CPA Finance Director Source of Funds: Department: FINANCE Account Number: Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Property Tax Code: Section 31.032 Exhibits: Exhibit Amount Requested: Budgeted Item: YES SUMMARY & RECOMMENDATION Residents that were located in a disaster area and sustained damage were evaluated by the City' planning department and were placed into two categories- Substantial Damage (50% and above) and Non Substantial Damage (49% and below). According to Section 31.032 (of the property tax code), installment payments are allowed for property taxes for those residential homesteads located in a disaster area. These installment payments should only apply to those who do not pay their taxes through a mortgage escrow account. The tax office will send letters to those residents with a homestead exemption that sustained damage of at least 25% and did not pay taxes through a home mortgage escrow account. The letter will inform them of the installment agreement that allows them to pay quarterly with installments beginning no later than January 1,2009, March 31, 2009, May 31, 2009 and ending July 31, 2009. Staff will evaluate each case to determine that the damage sustained is at least 25% to qualify for this program. Action Reauired bv Council: ve taxing unit guidelines for installment payments for residential homesteads with a urn of 25% damage. d~J~ Date 10/311200810:06 AMlS:/fmance director/sickbuyback.doc RESOLUTION NO. 2008-~ A RESOLUTION AUTHORIZING RESIDENTS WHO SUSTAINED AT LEAST 25% DAMAGE FROM HURRICANE IICE TO RESIDENTIAL HOMESTEAD PROPERTY TO PAY AD VALOREM TAXES ON SAID PROPERTY IN QUARTERLY INSTALLMENTS, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby approves the payment of ad valorem taxes in quarterly installments by residents who sustained at least 25% damage from Hurricane Ike, to their residential homestead property, as allowed by Texas Tax Code ~31.032. This quarterly installment plan does not apply to citizens who pay their ad valorem taxes through a mortgage escrow account. section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Resolution shall be effective from and after its passage and approval and it is so ordered. PASSED AND APPROVED this J ~day of }JOt), , 2008. ~Lr~ Alton E. Porter, Mayor By: ATTEST: 'ft/"/lL,., t/dI~ Martha A. Gillett City Secretary APP~ i r~ Clark T. Askins Assistant city Attorney 2 ~ 31.032. INSTALLMENT PAYMENTS OF TAXES ON PROPERTY IN DISASTER AREA. (a) This section applies only to: (1) real property that: (A) is the residence homestead of the owner or consists of property that is used for residential purposes and that has fewer than five living units; (B) is located in a disaster area; and (C) has been damaged as a direct result of the disaster; and (2) taxes that are imposed on the property by a taxing unit before the first anniversary of the disaster. (b) If, before the delinquency date, a person pays at least one-fourth of a taxing unit's taxes imposed on property that the person owns, accompanied by notice to the taxing unit that the person will pay the remaining taxes in installments, the person may pay the remaining taxes without penalty or interest in three equal installments. The first installment must be paid before April 1, the second installment before June 1, and the third installment before August 1. (c) If the person fails to make a payment before the applicable date provided by Subsection (b), the unpaid amount is delinquent and incurs a penalty of 12 percent and interest as provided by Section 33.01(c). (d) A person may pay more than the amount due for each installment and the amount in excess of the amount due shall be . credited to the next installment. A person may not pay less than the total amount due for each installment unless the collector provides for the acceptance of partial payments under this section. If the collector accepts a partial payment, penalties and interest are incurred only by the amount of each installment that remains unpaid on the applicable date provided by Subsection (b). (e) If the delinquency date for taxes to which this section applies is postponed to May 1 or a later date, the collector shall extend each installment deadline provided by Subsection (b) by the number of months that the delinquency date was postponed. The collector may not extend the third installment deadline beyond December 31. (f) The comptroller shall adopt rules to implement this section. (g) In this section: (1) "Disaster" has the meaning assigned by Section 418.004, Government Code. (2) "Disaster area" has the meaning assigned by Section 151.350. Added by Acts 1995, 74th Leg., ch. 1041, ~ 1, eff. June 17, 1995.