88R1011 RDS-D
By: González of Dallas H.B. No. 740
A BILL TO BE ENTITLED
AN ACT
relating to the deferral or abatement of the collection of ad
valorem taxes on an appreciating residence homestead.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 33.065(a), (f), and (g), Tax Code, are
amended to read as follows:
(a) An individual is entitled to defer collection of a tax
or abate a suit to collect a delinquent tax imposed on the portion
of the appraised value of property the individual owns and occupies
as the individual's residence homestead that exceeds the sum of:
(1) 105 percent of the appraised value of the property
for the preceding year; and
(2) the market value of all new improvements to the
property.
(f) If the collection of [delinquent] taxes on the property
was deferred in a prior tax year and the sum of the amounts
described by Subsections (a)(1) and (2) exceeds the appraised value
of the property for the current tax year, the amount of taxes the
collection of which may be deferred is reduced by the amount
calculated by multiplying the taxing unit's tax rate for the
current year by the amount by which that sum exceeds the appraised
value of the property.
(g) A tax lien remains on the property and interest
continues to accrue during the period collection of [delinquent]
taxes is deferred or abated under this section. The annual interest
rate during the deferral or abatement period is five [eight]
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 (c) or the date the judgment
abating the suit is entered, as applicable, are preserved. A
penalty is not incurred [on the delinquent taxes for which
collection is deferred or abated] during a deferral or abatement
period. The additional penalty under Section 33.07 may be imposed
and collected only if the [delinquent] taxes for which collection
is deferred or abated remain delinquent on or after the 91st 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 33.065(g), Tax Code, as amended by this
Act, applies only to interest that accrues during a deferral or
abatement period on or after the effective date of this Act,
regardless of whether the deferral or abatement period began before
that date or begins on or after that date. Interest that accrued
during a deferral or abatement period before the effective date of
this Act is governed by the law in effect when the interest accrued,
and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect January 1, 2024.