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| 3 | 8 | | |
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| 4 | 9 | | A BILL TO BE ENTITLED |
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| 5 | 10 | | AN ACT |
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| 6 | 11 | | relating to the deferral or abatement of the collection of ad |
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| 7 | 12 | | valorem taxes on an appreciating residence homestead. |
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| 8 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 14 | | SECTION 1. Sections 33.065(a), (f), and (g), Tax Code, are |
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| 10 | 15 | | amended to read as follows: |
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| 11 | 16 | | (a) An individual is entitled to defer collection of a tax |
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| 12 | 17 | | or abate a suit to collect a delinquent tax imposed on the portion |
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| 13 | 18 | | of the appraised value of property the individual owns and occupies |
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| 14 | 19 | | as the individual's residence homestead that exceeds the sum of: |
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| 15 | 20 | | (1) 105 percent of the appraised value of the property |
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| 16 | 21 | | for the preceding year; and |
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| 17 | 22 | | (2) the market value of all new improvements to the |
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| 18 | 23 | | property. |
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| 19 | 24 | | (f) If the collection of [delinquent] taxes on the property |
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| 20 | 25 | | was deferred in a prior tax year and the sum of the amounts |
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| 21 | 26 | | described by Subsections (a)(1) and (2) exceeds the appraised value |
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| 22 | 27 | | of the property for the current tax year, the amount of taxes the |
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| 23 | 28 | | collection of which may be deferred is reduced by the amount |
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| 24 | 29 | | calculated by multiplying the taxing unit's tax rate for the |
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| 25 | 30 | | current year by the amount by which that sum exceeds the appraised |
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| 26 | 31 | | value of the property. |
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| 27 | 32 | | (g) A tax lien remains on the property and interest |
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| 28 | 33 | | continues to accrue during the period collection of [delinquent] |
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| 29 | 34 | | taxes is deferred or abated under this section. The annual interest |
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| 30 | 35 | | rate during the deferral or abatement period is five [eight] |
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| 31 | 36 | | percent instead of the rate provided by Section 33.01. Interest and |
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| 32 | 37 | | penalties that accrued or that were incurred or imposed under |
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| 33 | 38 | | Section 33.01 or 33.07 before the date the individual files the |
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| 34 | 39 | | deferral affidavit under Subsection (c) or the date the judgment |
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| 35 | 40 | | abating the suit is entered, as applicable, are preserved. A |
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| 36 | 41 | | penalty is not incurred [on the delinquent taxes for which |
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| 37 | 42 | | collection is deferred or abated] during a deferral or abatement |
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| 38 | 43 | | period. The additional penalty under Section 33.07 may be imposed |
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| 39 | 44 | | and collected only if the [delinquent] taxes for which collection |
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| 40 | 45 | | is deferred or abated remain delinquent on or after the 91st day |
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| 41 | 46 | | after the date the deferral or abatement period expires. A plea of |
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| 42 | 47 | | limitation, laches, or want of prosecution does not apply against |
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| 43 | 48 | | the taxing unit because of deferral or abatement of collection as |
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| 44 | 49 | | provided by this section. |
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| 45 | 50 | | SECTION 2. Section 33.065(g), Tax Code, as amended by this |
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| 46 | 51 | | Act, applies only to interest that accrues during a deferral or |
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| 47 | 52 | | abatement period on or after the effective date of this Act, |
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| 48 | 53 | | regardless of whether the deferral or abatement period began before |
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| 49 | 54 | | that date or begins on or after that date. Interest that accrued |
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| 50 | 55 | | during a deferral or abatement period before the effective date of |
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| 51 | 56 | | this Act is governed by the law in effect when the interest accrued, |
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| 52 | 57 | | and that law is continued in effect for that purpose. |
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| 53 | 58 | | SECTION 3. This Act takes effect January 1, 2020. |
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