| 1 | 1 | | 88R1011 RDS-D |
|---|
| 2 | 2 | | By: González of Dallas H.B. No. 740 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the deferral or abatement of the collection of ad |
|---|
| 8 | 8 | | valorem taxes on an appreciating residence homestead. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Sections 33.065(a), (f), and (g), Tax Code, are |
|---|
| 11 | 11 | | amended to read as follows: |
|---|
| 12 | 12 | | (a) An individual is entitled to defer collection of a tax |
|---|
| 13 | 13 | | or abate a suit to collect a delinquent tax imposed on the portion |
|---|
| 14 | 14 | | of the appraised value of property the individual owns and occupies |
|---|
| 15 | 15 | | as the individual's residence homestead that exceeds the sum of: |
|---|
| 16 | 16 | | (1) 105 percent of the appraised value of the property |
|---|
| 17 | 17 | | for the preceding year; and |
|---|
| 18 | 18 | | (2) the market value of all new improvements to the |
|---|
| 19 | 19 | | property. |
|---|
| 20 | 20 | | (f) If the collection of [delinquent] taxes on the property |
|---|
| 21 | 21 | | was deferred in a prior tax year and the sum of the amounts |
|---|
| 22 | 22 | | described by Subsections (a)(1) and (2) exceeds the appraised value |
|---|
| 23 | 23 | | of the property for the current tax year, the amount of taxes the |
|---|
| 24 | 24 | | collection of which may be deferred is reduced by the amount |
|---|
| 25 | 25 | | calculated by multiplying the taxing unit's tax rate for the |
|---|
| 26 | 26 | | current year by the amount by which that sum exceeds the appraised |
|---|
| 27 | 27 | | value of the property. |
|---|
| 28 | 28 | | (g) A tax lien remains on the property and interest |
|---|
| 29 | 29 | | continues to accrue during the period collection of [delinquent] |
|---|
| 30 | 30 | | taxes is deferred or abated under this section. The annual interest |
|---|
| 31 | 31 | | rate during the deferral or abatement period is five [eight] |
|---|
| 32 | 32 | | percent instead of the rate provided by Section 33.01. Interest and |
|---|
| 33 | 33 | | penalties that accrued or that were incurred or imposed under |
|---|
| 34 | 34 | | Section 33.01 or 33.07 before the date the individual files the |
|---|
| 35 | 35 | | deferral affidavit under Subsection (c) or the date the judgment |
|---|
| 36 | 36 | | abating the suit is entered, as applicable, are preserved. A |
|---|
| 37 | 37 | | penalty is not incurred [on the delinquent taxes for which |
|---|
| 38 | 38 | | collection is deferred or abated] during a deferral or abatement |
|---|
| 39 | 39 | | period. The additional penalty under Section 33.07 may be imposed |
|---|
| 40 | 40 | | and collected only if the [delinquent] taxes for which collection |
|---|
| 41 | 41 | | is deferred or abated remain delinquent on or after the 91st day |
|---|
| 42 | 42 | | after the date the deferral or abatement period expires. A plea of |
|---|
| 43 | 43 | | limitation, laches, or want of prosecution does not apply against |
|---|
| 44 | 44 | | the taxing unit because of deferral or abatement of collection as |
|---|
| 45 | 45 | | provided by this section. |
|---|
| 46 | 46 | | SECTION 2. Section 33.065(g), Tax Code, as amended by this |
|---|
| 47 | 47 | | Act, applies only to interest that accrues during a deferral or |
|---|
| 48 | 48 | | abatement period on or after the effective date of this Act, |
|---|
| 49 | 49 | | regardless of whether the deferral or abatement period began before |
|---|
| 50 | 50 | | that date or begins on or after that date. Interest that accrued |
|---|
| 51 | 51 | | during a deferral or abatement period before the effective date of |
|---|
| 52 | 52 | | this Act is governed by the law in effect when the interest accrued, |
|---|
| 53 | 53 | | and that law is continued in effect for that purpose. |
|---|
| 54 | 54 | | SECTION 3. This Act takes effect January 1, 2024. |
|---|