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A BILL TO BE ENTITLED
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AN ACT
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relating to the deferral or abatement of the collection of ad |
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valorem taxes on certain real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 6.035(a), Tax Code, is amended to read as |
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follows: |
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(a) An individual is ineligible to serve on an appraisal |
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district board of directors and is disqualified from employment as |
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chief appraiser if the individual: |
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(1) is related within the second degree by |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code, to an individual who is engaged in the business of |
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appraising property for compensation for use in proceedings under |
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this title or of representing property owners for compensation in |
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proceedings under this title in the appraisal district; or |
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(2) owns property on which delinquent taxes have been |
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owed to a taxing unit for more than 60 days after the date the |
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individual knew or should have known of the delinquency unless: |
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(A) the delinquent taxes and any penalties and |
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interest are being paid under an installment payment agreement |
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under Section 33.02; or |
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(B) a suit to collect the delinquent taxes is |
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deferred or abated under Section 33.06, [or] 33.065, or 33.066. |
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SECTION 2. Section 6.412(a), Tax Code, is amended to read as |
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follows: |
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(a) An individual is ineligible to serve on an appraisal |
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review board if the individual: |
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(1) is related within the second degree by |
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consanguinity or affinity, as determined under Chapter 573, |
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|
Government Code, to an individual who is engaged in the business of |
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appraising property for compensation for use in proceedings under |
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this title or of representing property owners for compensation in |
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proceedings under this title in the appraisal district for which |
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the appraisal review board is established; |
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(2) owns property on which delinquent taxes have been |
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owed to a taxing unit for more than 60 days after the date the |
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individual knew or should have known of the delinquency unless: |
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(A) the delinquent taxes and any penalties and |
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interest are being paid under an installment payment agreement |
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under Section 33.02; or |
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(B) a suit to collect the delinquent taxes is |
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deferred or abated under Section 33.06, [or] 33.065, or 33.066; or |
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(3) is related within the third degree by |
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consanguinity or within the second degree by affinity, as |
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determined under Chapter 573, Government Code, to a member of the |
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appraisal district's board of directors. |
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SECTION 3. 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 |
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during the deferral or abatement period is two [eight] percent |
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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 (b) or the date the judgment |
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abating the suit is entered, as applicable, are preserved. A |
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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 4. Section 33.065, Tax Code, is amended to read as |
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follows: |
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Sec. 33.065. DEFERRED COLLECTION OF TAXES ON [APPRECIATING] |
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RESIDENCE HOMESTEAD BASED ON APPRECIATING VALUE OR OWNER EQUITY. |
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(a) An individual is entitled to defer collection of a tax or abate |
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a suit to collect a delinquent tax imposed on: |
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(1) the portion of the appraised value of property the |
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individual owns and occupies as the individual's residence |
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homestead that exceeds the sum of: |
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(A) [(1)] 105 percent of the appraised value of |
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the property for the preceding year; and |
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(B) [(2)] the market value of all new |
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improvements to the property; or |
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(2) property the individual owns and occupies as the |
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individual's residence homestead if the individual has an ownership |
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interest in the property on January 1 of the tax year for which the |
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tax is imposed equal to or greater than 10 percent of the market |
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value of the property for that tax year. |
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(b) An individual may not obtain a deferral or abatement |
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authorized by Subsection (a)(1) [under this section], and any |
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deferral or abatement previously received expires, if the taxes on |
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the portion of the appraised value of the property that does not |
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exceed the amount provided by Subsection (a)(1) [(a)] are |
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delinquent. |
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(c) To obtain a deferral, an individual must file with the |
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chief appraiser for the appraisal district in which the property is |
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located a valid [an] affidavit stating the facts required to be |
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established by Subsection (a)(1) or (2), as applicable [(a)]. If |
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the chief appraiser determines that the affidavit is valid, the |
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[The] chief appraiser shall notify each taxing unit participating |
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in the district of the filing. After receiving the notice that a |
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valid [an] affidavit has been [is] filed under this subsection, a |
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taxing unit may not file suit to collect delinquent taxes on the |
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property for which collection is deferred until the earlier of the |
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date the deferral expires as provided by Subsection (g), if |
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applicable, or the date the individual no longer owns and occupies |
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the property as a residence homestead. |
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(d) To obtain an abatement, the individual must file in the |
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court in which the delinquent tax suit is pending an affidavit |
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stating the facts required to be established by Subsection (a)(1) |
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or (2), as applicable [(a)]. If the taxing unit that filed the suit |
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does not file a controverting affidavit or if, after a hearing, the |
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court finds the individual is entitled to the deferral, the court |
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shall abate the suit until the earlier of the date the abatement |
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expires as provided by Subsection (g), if applicable, or the date |
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the individual no longer owns and occupies the property as the |
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individual's residence homestead. The clerk of the court shall |
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deliver a copy of the judgment abating the suit to the chief |
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appraiser of each appraisal district that appraises the property. |
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(e) A deferral or abatement authorized by Subsection (a)(1) |
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[under this section] applies only to ad valorem taxes imposed |
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beginning with the tax year following the first tax year the |
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individual entitled to the deferral or abatement qualifies the |
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property for an exemption under Section 11.13. For purposes of this |
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subsection, the owner of a residence homestead that is qualified |
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for an exemption under Section 11.13 on January 1, 1998, is |
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considered to have qualified the property for the first time in the |
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1997 tax year. |
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(f) If the collection of delinquent taxes on [the] property |
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was deferred under Subsection (a)(1) in a prior tax year and the sum |
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of the amounts described by Subsections (a)(1)(A) and (B) [(a)(1)
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and (2)] exceeds the appraised value of the property for the current |
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tax year, the amount of taxes the collection of which may be |
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deferred is reduced by the amount calculated by multiplying the |
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taxing unit's tax rate for the current year by the amount by which |
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that sum exceeds the appraised value of the property. |
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(g) A deferral or abatement authorized by Subsection (a)(2) |
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and obtained by an individual expires on the first January 1 on |
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which the individual no longer has the ownership interest in the |
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property prescribed by that subdivision. An individual who obtains |
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a deferral or abatement authorized by Subsection (a)(2) must file |
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annually with the chief appraiser that received the affidavit for |
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the deferral or the court that received the affidavit for the |
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abatement, as applicable, a valid affidavit demonstrating that the |
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individual has the ownership interest in the property prescribed by |
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that subdivision on January 1 of the current tax year or stating |
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that the individual does not meet that requirement on that date. |
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(h) 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. Except as provided |
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by Subsection (i), the [The] annual interest rate during the |
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deferral or abatement period is eight percent instead of the rate |
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provided by Section 33.01. Interest and penalties that accrued or |
|
|
that were incurred or imposed under Section 33.01 or 33.07 before |
|
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the date the individual files the deferral affidavit under |
|
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Subsection (c) or the date the judgment abating the suit is entered, |
|
|
as applicable, are preserved. A penalty is not incurred on the |
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delinquent taxes for which collection is deferred or abated during |
|
|
a deferral or abatement period. The additional penalty under |
|
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Section 33.07 may be imposed and collected only if the delinquent |
|
|
taxes for which collection is deferred or abated remain delinquent |
|
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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. |
|
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(i) The annual interest rate during the deferral or |
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|
abatement period is two percent instead of the rate provided by |
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Subsection (h) for each tax year for which the individual has an |
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ownership interest in the property on January 1 of the tax year that |
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is equal to or greater than 50 percent of the market value of the |
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property for that tax year. To receive the interest rate prescribed |
|
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by this subsection for a tax year, an individual must file with the |
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chief appraiser that received the affidavit for the deferral or the |
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court that received the affidavit for the abatement, as applicable, |
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a valid affidavit stating the facts required to demonstrate that |
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the individual is entitled to the interest rate provided by this |
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subsection for that tax year. |
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(j) A chief appraiser or court may prescribe the contents |
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of, and the manner and time for filing, an affidavit required by |
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Subsection (g) or (i). If the chief appraiser or court, as |
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applicable, determines that the affidavit is valid, the chief |
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appraiser or court shall notify each taxing unit participating in |
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the district of the filing of an affidavit under those subsections. |
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(k) [(h)] Each year the chief appraiser for each appraisal |
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district shall publicize in a manner reasonably designed to notify |
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all residents of the county for which the appraisal district is |
|
|
established of the provisions of this section and, specifically, |
|
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the method by which an eligible person may obtain a deferral. |
|
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(l) [(i)] In this section: |
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(1) "New improvement" means an improvement to a |
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residence homestead that is made after the appraisal of the |
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property for the preceding year and that increases the market value |
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of the property. The term does not include ordinary maintenance of |
|
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an existing structure or the grounds or another feature of the |
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property. |
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(2) "Residence homestead" has the meaning assigned |
|
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that term by Section 11.13. |
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(m) For the purposes of this section, an individual's |
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ownership interest in property for a tax year is equal to the |
|
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difference between the market value of the property for that tax |
|
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year and the total outstanding debt secured by liens attached to the |
|
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property on January 1 of that tax year. |
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SECTION 5. Subchapter A, Chapter 33, Tax Code, is amended by |
|
|
adding Section 33.066 to read as follows: |
|
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Sec. 33.066. DEFERRED COLLECTION OF TAXES ON HISTORIC |
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FAMILY PROPERTY. (a) In this section, "historic family property" |
|
|
means real property owned continuously for at least the preceding |
|
|
100 years by one or more individuals who are members of the same |
|
|
family. For purposes of this subsection, individuals are considered |
|
|
to be members of the same family if they are related within the |
|
|
third degree by consanguinity or affinity, as determined under |
|
|
Chapter 573, Government Code, at the time the property is |
|
|
transferred from one to the other. |
|
|
(b) An individual is entitled to defer collection of a tax |
|
|
or abate a suit to collect a delinquent tax imposed on a historic |
|
|
family property if the individual: |
|
|
(1) owns the property; and |
|
|
(2) has an ownership interest in the property on |
|
|
January 1 of the tax year for which the tax is imposed equal to or |
|
|
greater than 50 percent of the market value of the property for that |
|
|
tax year. |
|
|
(c) To obtain a deferral, an individual must file with the |
|
|
chief appraiser for the appraisal district in which the property is |
|
|
located a valid affidavit stating the facts required to be |
|
|
established by Subsection (b). If the chief appraiser determines |
|
|
that the affidavit is valid, the chief appraiser shall notify each |
|
|
taxing unit participating in the district of the filing. After |
|
|
receiving the notice that a valid affidavit has been filed under |
|
|
this subsection, a taxing unit may not file suit to collect |
|
|
delinquent taxes on the property for which collection is deferred |
|
|
until the date the individual no longer owns the property. |
|
|
(d) To obtain an abatement, the individual must file in the |
|
|
court in which the delinquent tax suit is pending an affidavit |
|
|
stating the facts required to be established by Subsection (b). If |
|
|
the taxing unit that filed the suit does not file a controverting |
|
|
affidavit or if, after a hearing, the court finds the individual is |
|
|
entitled to the deferral, the court shall abate the suit until the |
|
|
date the individual no longer owns the property. The clerk of the |
|
|
court shall deliver a copy of the judgment abating the suit to the |
|
|
chief appraiser of each appraisal district that appraises the |
|
|
property. |
|
|
(e) A deferral or abatement authorized by Subsection (b) and |
|
|
obtained by an individual expires on the first January 1 on which |
|
|
the individual no longer meets the ownership requirements |
|
|
prescribed by that subsection. An individual who obtains a deferral |
|
|
or abatement authorized by Subsection (b) must file annually with |
|
|
the chief appraiser that received the affidavit for the deferral or |
|
|
the court that received the affidavit for the abatement, as |
|
|
applicable, a valid affidavit demonstrating that the individual |
|
|
meets the ownership requirements prescribed by that subsection on |
|
|
January 1 of the current tax year or stating that the individual |
|
|
does not meet those requirements on that date. |
|
|
(f) 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 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. |
|
|
(g) Each year the chief appraiser for each appraisal |
|
|
district shall publicize in a manner reasonably designed to notify |
|
|
all residents of the county for which the appraisal district is |
|
|
established of the provisions of this section and, specifically, |
|
|
the method by which an eligible person may obtain a deferral. |
|
|
(h) For the purposes of this section, an individual's |
|
|
ownership interest in property for a tax year is equal to the |
|
|
difference between the market value of the property for that tax |
|
|
year and the total outstanding debt secured by liens attached to the |
|
|
property on January 1 of that tax year. |
|
|
SECTION 6. Section 403.302(d), Government Code, is amended |
|
|
to read as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of: |
|
|
(A) action required by statute or the |
|
|
constitution of this state, other than Section 11.311, Tax Code, |
|
|
that, if the tax rate adopted by the district is applied to it, |
|
|
produces an amount equal to the difference between the tax that the |
|
|
district would have imposed on the property if the property were |
|
|
fully taxable at market value and the tax that the district is |
|
|
actually authorized to impose on the property, if this subsection |
|
|
does not otherwise require that portion to be deducted; or |
|
|
(B) action taken by the district under Subchapter |
|
|
B or C, Chapter 313, Tax Code, before the expiration of the |
|
|
subchapter; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, |
|
|
33.065(a)(2), or 33.066, Tax Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065(a)(1) [33.065], Tax Code; and |
|
|
(13) the amount by which the market value of a |
|
|
residence homestead to which Section 23.23, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
|
|
that section. |
|
|
SECTION 7. Section 33.06(d), Tax Code, as amended by this |
|
|
Act, and Section 33.065(i), Tax Code, as added by this Act, apply |
|
|
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 8. This Act takes effect January 1, 2018. |