| |
| |
|
|
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, 2022. |