BILL ANALYSIS

H.B. 3629

By: Bonnen

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Should an individual who is elderly, disabled, or a disabled veteran defer or abate payment of the property taxes on their residence homestead, the unpaid taxes accrue interest for each year the taxes remain unpaid and penalties otherwise due are not imposed. A taxing unit may not file suit to collect the taxes and the property may not be sold at a foreclosure sale until the 181st day after the date the individual no longer owns and occupies the property as their homestead, which is often following death. Families are often unaware that their elderly or disabled family members have opted to defer or abate payment of taxes. Many even do not discover the tax delinquency until a suit has already been filed to collect the taxes. H.B. 3629 seeks to provide additional time for family members to either pay off the tax balance or sell the property before a taxing unit may take action by postponing the deadline for deferral or abatement.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3629 amends the Tax Code to change the date a deferral or abatement of the collection of property taxes on the residence homestead of an elderly or disabled person or disabled veteran expires after the date the individual or the surviving spouse of the individual, as applicable, no longer owns and occupies the property as their residence homestead from the 181st day after that date to the 181st day after the date the collector for the applicable taxing unit delivers a notice of delinquency of the taxes following the date the individual or their spouse no longer owns and occupies the property as their residence homestead.

EFFECTIVE DATE

September 1, 2021.