1. (a) The governing body of a taxing unit that collects its own taxes may adopt the discounts provided by Subsection (b) or Subsection (c) of this section, or both, in the manner required by law for official action by the body. The discounts, if adopted, apply to taxes for a taxing unit for which the adopting taxing unit collects taxes if the governing body of the other unit, in the manner required by law for official action by the body, adopts the discounts or approves of their application to its taxes by the collecting unit. If a taxing unit adopts both discounts under Subsections (b) and (c) of this section, the discounts adopted under Subsection (b) apply unless the unit mails its tax bills after September 30, in which case only the discounts under Subsection (c) apply.

2. (b) A taxing unit may adopt the following discounts to apply regardless of the date on which it mails its tax bills:

   1. (1) three percent if the tax is paid in October or earlier;
   2. (2) two percent if the tax is paid in November; and
   3. (3) one percent if the tax is paid in December.

3. (c) A taxing unit may adopt the following discounts to apply when it mails its tax bills after September 30:

   1. (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. (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. (3) one percent if the tax is paid during the third full calendar month following the date on which the tax bills were mailed.
4. (d) Repealed by Acts 1983, 68th Leg., p. 4876, ch. 862, Sec. 3, eff. Sept. 1, 1983.

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.