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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate at which interest accrues in connection with |
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the deferral or abatement of the collection of ad valorem taxes on |
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certain residence homesteads. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) This section takes effect only if the |
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constitutional amendment proposed by H.J.R. 21, 85th Legislature, |
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Regular Session, 2017, is approved by the voters. |
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(b) Section 33.06(d), Tax Code, as amended by H.B. 150, Acts |
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of the 85th Legislature, Regular Session, 2017, effective January |
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1, 2018, is amended to read as follows: |
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(d) A tax lien remains on the property and interest |
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continues to accrue during the period collection of taxes is |
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deferred or abated under this section. The annual interest rate |
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during the deferral or abatement period is the five-year Constant |
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Maturity Treasury Rate reported by the Federal Reserve as of |
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January 1 of the year in which the deferral or abatement was |
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obtained [five percent] instead of the rate provided by Section |
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33.01. Interest and penalties that accrued or that were incurred or |
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imposed under Section 33.01 or 33.07 before the date the individual |
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files the deferral affidavit under Subsection (b) or the date the |
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judgment abating the suit is entered, as applicable, are preserved. |
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A penalty under Section 33.01 is not incurred during a deferral or |
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abatement period. The additional penalty under Section 33.07 may |
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be imposed and collected only if the taxes for which collection is |
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deferred or abated remain delinquent on or after the 181st day after |
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the date the deferral or abatement period expires. A plea of |
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limitation, laches, or want of prosecution does not apply against |
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the taxing unit because of deferral or abatement of collection as |
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provided by this section. |
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SECTION 2. (a) This section takes effect only if the |
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constitutional amendment proposed by H.J.R. 21, 85th Legislature, |
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|
Regular Session, 2017, is not approved by the voters. |
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|
(b) Section 33.06(d), Tax Code, is amended to read as |
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|
follows: |
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(d) A tax lien remains on the property and interest |
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|
continues to accrue during the period collection of taxes is |
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|
deferred or abated under this section. The annual interest rate |
|
|
during the deferral or abatement period is the five-year Constant |
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|
Maturity Treasury Rate reported by the Federal Reserve as of |
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|
January 1 of the year in which the deferral or abatement was |
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|
obtained [eight percent] instead of the rate provided by Section |
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33.01. Interest and penalties that accrued or that were incurred or |
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|
imposed under Section 33.01 or 33.07 before the date the individual |
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|
files the deferral affidavit under Subsection (b) or the date the |
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|
judgment abating the suit is entered, as applicable, are preserved. |
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|
A penalty under Section 33.01 is not incurred during a deferral or |
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|
abatement period. The additional penalty under Section 33.07 may |
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|
be imposed and collected only if the taxes for which collection is |
|
|
deferred or abated remain delinquent on or after the 181st day after |
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|
the date the deferral or abatement period expires. A plea of |
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|
limitation, laches, or want of prosecution does not apply against |
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the taxing unit because of deferral or abatement of collection as |
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provided by this section. |
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SECTION 3. Section 33.065(g), Tax Code, is amended to read |
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as follows: |
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(g) A tax lien remains on the property and interest |
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continues to accrue during the period collection of delinquent |
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taxes is deferred or abated under this section. The annual interest |
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rate during the deferral or abatement period is the five-year |
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Constant Maturity Treasury Rate reported by the Federal Reserve as |
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of January 1 of the year in which the deferral or abatement was |
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obtained [eight percent] instead of the rate provided by Section |
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33.01. Interest and penalties that accrued or that were incurred or |
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|
imposed under Section 33.01 or 33.07 before the date the individual |
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files the deferral affidavit under Subsection (c) or the date the |
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judgment abating the suit is entered, as applicable, are preserved. |
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A penalty is not incurred on the delinquent taxes for which |
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collection is deferred or abated during a deferral or abatement |
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period. The additional penalty under Section 33.07 may be imposed |
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and collected only if the delinquent taxes for which collection is |
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deferred or abated remain delinquent on or after the 91st day after |
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the date the deferral or abatement period expires. A plea of |
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limitation, laches, or want of prosecution does not apply against |
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the taxing unit because of deferral or abatement of collection as |
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provided by this section. |
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SECTION 4. Sections 33.06(d) and 33.065(g), Tax Code, as |
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amended by this Act, apply to interest that accrued during a |
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deferral or abatement period under either of those sections before |
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January 1, 2018, if the tax remains unpaid as of that date, and |
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apply to interest that accrues during a deferral or abatement |
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period under either of those sections on or after that date, |
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regardless of whether the deferral or abatement period began before |
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January 1, 2018, or begins on or after that date. |
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SECTION 5. This Act takes effect January 1, 2018. |