79R315 JD-D

By:  Wong                                                         H.B. No. 114



A BILL TO BE ENTITLED

AN ACT

relating to the rate at which interest accrues in connection with 
the deferral or abatement of the collection of ad valorem taxes on 
the residence homestead of an elderly or disabled person.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 33.06(d), Tax Code, is amended to read as 
follows:       
	(d)  A tax lien remains on the property and interest 
continues to accrue during the period collection of taxes is 
deferred or abated under this section.  The annual interest rate in 
effect for each calendar year or portion of a calendar year during 
the deferral or abatement period is the lower of eight percent or 
the national average contract mortgage rate for the purchase of 
previously occupied homes by combined lenders as of December 31 of 
the preceding year as determined by the Federal Housing Finance 
Board or its successor 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 (b) or the date the 
judgment abating the suit is entered, as applicable, are preserved.  
A penalty under Section 33.01 is not incurred during a deferral or 
abatement period.  The additional penalty under Section 33.07 may 
be imposed and collected only if the taxes for which collection is 
deferred or abated remain delinquent on or after the 181st 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 33.06(d), Tax Code, as amended by this 
Act, applies to interest that accrued during a deferral or 
abatement period under that section before September 1, 2005, if 
the tax remains unpaid as of that date, and applies to interest that 
accrues during a deferral or abatement period under that section on 
or after that date, regardless of whether the deferral or abatement 
period began before September 1, 2005, or begins on or after that 
date.
	SECTION 3.  This Act takes effect September 1, 2005.