88R2200 RDS-D
By: Schofield H.B. No. 721
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 lower of the five-year
Constant Maturity Treasury Rate reported by the Federal Reserve
Board as of January 1 of that year or 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, 2023, 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, 2023, or begins on or after that
date.
SECTION 3. This Act takes effect September 1, 2023.