| 1 | 1 | | 88R2200 RDS-D |
|---|
| 2 | 2 | | By: Schofield H.B. No. 721 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the rate at which interest accrues in connection with |
|---|
| 8 | 8 | | the deferral or abatement of the collection of ad valorem taxes on |
|---|
| 9 | 9 | | certain residence homesteads. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 33.06(d), Tax Code, is amended to read as |
|---|
| 12 | 12 | | follows: |
|---|
| 13 | 13 | | (d) A tax lien remains on the property and interest |
|---|
| 14 | 14 | | continues to accrue during the period collection of taxes is |
|---|
| 15 | 15 | | deferred or abated under this section. The annual interest rate in |
|---|
| 16 | 16 | | effect for each calendar year or portion of a calendar year during |
|---|
| 17 | 17 | | the deferral or abatement period is the lower of the five-year |
|---|
| 18 | 18 | | Constant Maturity Treasury Rate reported by the Federal Reserve |
|---|
| 19 | 19 | | Board as of January 1 of that year or five percent instead of the |
|---|
| 20 | 20 | | rate provided by Section 33.01. Interest and penalties that |
|---|
| 21 | 21 | | accrued or that were incurred or imposed under Section 33.01 or |
|---|
| 22 | 22 | | 33.07 before the date the individual files the deferral affidavit |
|---|
| 23 | 23 | | under Subsection (b) or the date the judgment abating the suit is |
|---|
| 24 | 24 | | entered, as applicable, are preserved. A penalty under Section |
|---|
| 25 | 25 | | 33.01 is not incurred during a deferral or abatement period. The |
|---|
| 26 | 26 | | additional penalty under Section 33.07 may be imposed and collected |
|---|
| 27 | 27 | | only if the taxes for which collection is deferred or abated remain |
|---|
| 28 | 28 | | delinquent on or after the 181st day after the date the deferral or |
|---|
| 29 | 29 | | abatement period expires. A plea of limitation, laches, or want of |
|---|
| 30 | 30 | | prosecution does not apply against the taxing unit because of |
|---|
| 31 | 31 | | deferral or abatement of collection as provided by this section. |
|---|
| 32 | 32 | | SECTION 2. Section 33.06(d), Tax Code, as amended by this |
|---|
| 33 | 33 | | Act, applies to interest that accrued during a deferral or |
|---|
| 34 | 34 | | abatement period under that section before September 1, 2023, if |
|---|
| 35 | 35 | | the tax remains unpaid as of that date, and applies to interest that |
|---|
| 36 | 36 | | accrues during a deferral or abatement period under that section on |
|---|
| 37 | 37 | | or after that date, regardless of whether the deferral or abatement |
|---|
| 38 | 38 | | period began before September 1, 2023, or begins on or after that |
|---|
| 39 | 39 | | date. |
|---|
| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|