| 1 | 1 | | 87R2686 SMT-F |
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| 2 | 2 | | By: Shine H.B. No. 535 |
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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 the rate at which interest accrues in connection with |
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| 8 | 8 | | the deferral or abatement of the collection of ad valorem taxes on |
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| 9 | 9 | | the residence homestead of an individual who is elderly or disabled |
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| 10 | 10 | | or a disabled veteran. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 33.06(d), Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (d) A tax lien remains on the property and interest |
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| 15 | 15 | | continues to accrue during the period collection of taxes is |
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| 16 | 16 | | deferred or abated under this section. The annual interest rate in |
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| 17 | 17 | | effect for each calendar year or portion of a calendar year during |
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| 18 | 18 | | the deferral or abatement period is the 10-year Constant Maturity |
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| 19 | 19 | | Treasury Rate reported by the Federal Reserve Board as of January 1 |
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| 20 | 20 | | of that year [five percent] instead of the rate provided by Section |
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| 21 | 21 | | 33.01. Interest and penalties that accrued or that were incurred or |
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| 22 | 22 | | imposed under Section 33.01 or 33.07 before the date the individual |
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| 23 | 23 | | files the deferral affidavit under Subsection (b) or the date the |
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| 24 | 24 | | judgment abating the suit is entered, as applicable, are preserved. |
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| 25 | 25 | | A penalty under Section 33.01 is not incurred during a deferral or |
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| 26 | 26 | | abatement period. The additional penalty under Section 33.07 may |
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| 27 | 27 | | be imposed and collected only if the taxes for which collection is |
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| 28 | 28 | | deferred or abated remain delinquent on or after the 181st day after |
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| 29 | 29 | | the date the deferral or abatement period expires. A plea of |
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| 30 | 30 | | limitation, laches, or want of prosecution does not apply against |
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| 31 | 31 | | the taxing unit because of deferral or abatement of collection as |
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| 32 | 32 | | provided by this section. |
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| 33 | 33 | | SECTION 2. Section 33.06(d), Tax Code, as amended by this |
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| 34 | 34 | | Act, applies to interest that accrued during a deferral or |
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| 35 | 35 | | abatement period under that section before September 1, 2021, if |
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| 36 | 36 | | the tax remains unpaid as of that date, and applies to interest that |
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| 37 | 37 | | accrues during a deferral or abatement period under that section on |
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| 38 | 38 | | or after that date, regardless of whether the deferral or abatement |
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| 39 | 39 | | period began before September 1, 2021, or begins on or after that |
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| 40 | 40 | | date. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2021. |
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