By: Murphy, Capriglione, Bonnen of Brazoria, H.B. No. 108
Darby, Turner, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the rate at which interest accrues in connection with
the deferral or abatement of the collection of ad valorem taxes on
certain residence homesteads.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) This section takes effect only if the
constitutional amendment proposed by H.J.R. 21, 85th Legislature,
Regular Session, 2017, is approved by the voters.
(b) Section 33.06(d), Tax Code, as amended by H.B. 150, Acts
of the 85th Legislature, Regular Session, 2017, effective January
1, 2018, is amended to read as follows:
(d) A tax lien remains on the property and interest
continues to accrue during the period collection of taxes is
deferred or abated under this section. The annual interest rate
during the deferral or abatement period is the five-year Constant
Maturity Treasury Rate reported by the Federal Reserve as of
January 1 of the year in which the deferral or abatement was
obtained [five percent] instead of the rate provided by Section
33.01. Interest and penalties that accrued or that were incurred or
imposed under Section 33.01 or 33.07 before the date the individual
files the deferral affidavit under Subsection (b) or the date the
judgment abating the suit is entered, as applicable, are preserved.
A penalty under Section 33.01 is not incurred during a deferral or
abatement period. The additional penalty under Section 33.07 may
be imposed and collected only if the taxes for which collection is
deferred or abated remain delinquent on or after the 181st day after
the date the deferral or abatement period expires. A plea of
limitation, laches, or want of prosecution does not apply against
the taxing unit because of deferral or abatement of collection as
provided by this section.
SECTION 2. (a) This section takes effect only if the
constitutional amendment proposed by H.J.R. 21, 85th Legislature,
Regular Session, 2017, is not approved by the voters.
(b) Section 33.06(d), Tax Code, is amended to read as
follows:
(d) A tax lien remains on the property and interest
continues to accrue during the period collection of taxes is
deferred or abated under this section. The annual interest rate
during the deferral or abatement period is the five-year Constant
Maturity Treasury Rate reported by the Federal Reserve as of
January 1 of the year in which the deferral or abatement was
obtained [eight percent] instead of the rate provided by Section
33.01. Interest and penalties that accrued or that were incurred or
imposed under Section 33.01 or 33.07 before the date the individual
files the deferral affidavit under Subsection (b) or the date the
judgment abating the suit is entered, as applicable, are preserved.
A penalty under Section 33.01 is not incurred during a deferral or
abatement period. The additional penalty under Section 33.07 may
be imposed and collected only if the taxes for which collection is
deferred or abated remain delinquent on or after the 181st day after
the date the deferral or abatement period expires. A plea of
limitation, laches, or want of prosecution does not apply against
the taxing unit because of deferral or abatement of collection as
provided by this section.
SECTION 3. Section 33.065(g), Tax Code, is amended to read
as follows:
(g) A tax lien remains on the property and interest
continues to accrue during the period collection of delinquent
taxes is deferred or abated under this section. The annual interest
rate during the deferral or abatement period is the five-year
Constant Maturity Treasury Rate reported by the Federal Reserve as
of January 1 of the year in which the deferral or abatement was
obtained [eight percent] instead of the rate provided by Section
33.01. Interest and penalties that accrued or that were incurred or
imposed under Section 33.01 or 33.07 before the date the individual
files the deferral affidavit under Subsection (c) or the date the
judgment abating the suit is entered, as applicable, are preserved.
A penalty is not incurred on the delinquent taxes for which
collection is deferred or abated during a deferral or abatement
period. The additional penalty under Section 33.07 may be imposed
and collected only if the delinquent taxes for which collection is
deferred or abated remain delinquent on or after the 91st day after
the date the deferral or abatement period expires. A plea of
limitation, laches, or want of prosecution does not apply against
the taxing unit because of deferral or abatement of collection as
provided by this section.
SECTION 4. Sections 33.06(d) and 33.065(g), Tax Code, as
amended by this Act, apply only to interest that accrues during a
deferral or abatement period that begins on or after the effective
date of this Act. Interest that accrues during a deferral or
abatement period that began before the effective date of this Act is
governe
d by the law in effect when the deferral or abatement period
began, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect January 1, 2018.