86R4285 LHC-D
By: Hughes S.B. No. 738
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. 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 in
effect for each calendar year or portion of a calendar year during
the deferral or abatement period is the five-year Constant Maturity
Treasury Rate reported by the Federal Reserve Board as of January 1
of that year [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. 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 in effect for each calendar year or portion of a calendar year
during the deferral or abatement period is the five-year Constant
Maturity Treasury Rate reported by the Federal Reserve Board as of
January 1 of that year [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 3. Sections 33.06(d) and 33.065(g), Tax Code, as
amended by this Act, apply to interest that accrued during a
deferral or abatement period under either of those sections before
September 1, 2019, if the tax remains unpaid as of that date, and
apply to interest that accrues during a deferral or abatement
period under either of those sections on or after that date,
regardless of whether the deferral or abatement period began before
September 1, 2019, or begins on or after that date.
SECTION 4. This Act takes effect September 1, 2019.