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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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an appreciating residence homestead. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 five [eight] |
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percent instead of the rate provided by Section 33.01. Interest and |
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penalties that accrued or that were incurred or imposed under |
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Section 33.01 or 33.07 before the date the individual files the |
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deferral affidavit under Subsection (c) or the date the judgment |
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abating the suit is entered, as applicable, are preserved. A |
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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 2. This Act applies only to interest that accrues |
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during a deferral or abatement period on or after the effective date |
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of this Act, regardless of whether the deferral or abatement period |
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began before that date or begins on or after that date. Interest |
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that accrued during a deferral or abatement period before the |
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effective date of this Act is governed by the law in effect when the |
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interest accrued, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect January 1, 2018. |