| 1 | 1 | | 2019S0579-1 04/15/19 |
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| 2 | 2 | | By: Menéndez S.B. No. 2544 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to deferred collection of ad valorem taxes on certain |
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| 8 | 8 | | residence homesteads. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. The heading to Section 33.06, Tax Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | Sec. 33.06. DEFERRED COLLECTION OF TAXES ON CERTAIN |
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| 13 | 13 | | RESIDENCE HOMESTEADS [HOMESTEAD OF ELDERLY OR DISABLED PERSON OR |
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| 14 | 14 | | DISABLED VETERAN]. |
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| 15 | 15 | | SECTION 2. Sections 33.06(a) and (d), Tax Code, are amended |
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| 16 | 16 | | to read as follows: |
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| 17 | 17 | | (a) An individual is entitled to defer collection of a tax, |
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| 18 | 18 | | abate a suit to collect a delinquent tax, or abate a sale to |
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| 19 | 19 | | foreclose a tax lien if: |
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| 20 | 20 | | (1) the individual: |
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| 21 | 21 | | (A) is 65 years of age or older; |
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| 22 | 22 | | (B) is disabled as defined by Section 11.13(m); |
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| 23 | 23 | | or |
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| 24 | 24 | | (C) is qualified to receive an exemption under |
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| 25 | 25 | | Section 11.134 or 11.22; and |
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| 26 | 26 | | (2) the tax was imposed against property that the |
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| 27 | 27 | | individual owns and occupies as a residence homestead. |
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| 28 | 28 | | (d) A tax lien remains on the property and interest |
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| 29 | 29 | | continues to accrue during the period collection of taxes is |
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| 30 | 30 | | deferred or abated under this section. The annual interest rate |
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| 31 | 31 | | during the deferral or abatement period is 2.5 [five] percent |
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| 32 | 32 | | instead of the rate provided by Section 33.01. Interest and |
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| 33 | 33 | | penalties that accrued or that were incurred or imposed under |
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| 34 | 34 | | Section 33.01 or 33.07 before the date the individual files the |
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| 35 | 35 | | deferral affidavit under Subsection (b) or the date the judgment |
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| 36 | 36 | | abating the suit is entered, as applicable, are preserved. A |
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| 37 | 37 | | penalty under Section 33.01 is not incurred during a deferral or |
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| 38 | 38 | | abatement period. The additional penalty under Section 33.07 may |
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| 39 | 39 | | be imposed and collected only if the taxes for which collection is |
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| 40 | 40 | | deferred or abated remain delinquent on or after the 181st day after |
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| 41 | 41 | | the date the deferral or abatement period expires. A plea of |
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| 42 | 42 | | limitation, laches, or want of prosecution does not apply against |
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| 43 | 43 | | the taxing unit because of deferral or abatement of collection as |
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| 44 | 44 | | provided by this section. |
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| 45 | 45 | | SECTION 3. Section 33.06(d), Tax Code, as amended by this |
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| 46 | 46 | | Act, applies only to interest that accrues during a deferral or |
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| 47 | 47 | | abatement period on or after January 1, 2020, regardless of whether |
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| 48 | 48 | | the deferral or abatement period began before that date or begins on |
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| 49 | 49 | | or after that date. Interest that accrued during a deferral or |
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| 50 | 50 | | abatement period before January 1, 2020, is governed by the law in |
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| 51 | 51 | | effect when the interest accrued, and that law is continued in |
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| 52 | 52 | | effect for that purpose. |
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| 53 | 53 | | SECTION 4. This Act takes effect January 1, 2020. |
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