87R2686 SMT-F
By: Shine H.B. No. 535
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
the residence homestead of an individual who is elderly or disabled
or a disabled veteran.
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 10-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 33.06(d), Tax Code, as amended by this
Act, applies to interest that accrued during a deferral or
abatement period under that section before September 1, 2021, if
the tax remains unpaid as of that date, and applies to interest that
accrues during a deferral or abatement period under that section on
or after that date, regardless of whether the deferral or abatement
period began before September 1, 2021, or begins on or after that
date.
SECTION 3. This Act takes effect September 1, 2021.