86R4285 LHC-D
 
  By: Hughes S.B. No. 738
 
 
 
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
  certain residence homesteads.
         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 five-year Constant Maturity
  Treasury Rate reported by the Federal Reserve Board as of January 1
  of that year [five 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 (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 33.065(g), Tax Code, is amended to read
  as follows:
         (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 in effect for each calendar year or portion of a calendar year
  during the deferral or abatement period is the five-year Constant
  Maturity Treasury Rate reported by the Federal Reserve Board as of
  January 1 of that year [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 3.  Sections 33.06(d) and 33.065(g), Tax Code, as
  amended by this Act, apply to interest that accrued during a
  deferral or abatement period under either of those sections before
  September 1, 2019, if the tax remains unpaid as of that date, and
  apply to interest that accrues during a deferral or abatement
  period under either of those sections on or after that date,
  regardless of whether the deferral or abatement period began before
  September 1, 2019, or begins on or after that date.
         SECTION 4.  This Act takes effect September 1, 2019.