Texas Tax Code 151.0036 – “Debt Collection Service”
Current as of: 2024 | Check for updates
|
Other versions
(a) “Debt collection service” means activity to collect or adjust a delinquent debt, to collect or adjust a claim, or to repossess property subject to a claim.
(b) “Debt collection service” does not include:
(1) the collection of:
(A) a judgment by an attorney or by a partnership or professional corporation of attorneys if the attorney, partnership, or corporation represented the person in the suit from which the judgment arose; or
(B) court-ordered child support or medical child support; or
(2) a service provided by a person acting as a trustee in connection with the foreclosure sale of real property under a lien created by a mortgage, deed of trust, or security instrument.
Terms Used In Texas Tax Code 151.0036
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
(c) “Debt collection service” includes the service performed for which a fee is collected under § 3.506, Business & Commerce Code. The person collecting the check shall add the amount of the tax to the fee in accordance with § 151.052 and shall collect the fee from the drawer or endorser of the check.