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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 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. Sections 33.065(a), (f), and (g), Tax Code, are |
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amended to read as follows: |
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(a) An individual is entitled to defer collection of a tax |
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or abate a suit to collect a delinquent tax imposed on the portion |
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of the appraised value of property the individual owns and occupies |
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as the individual's residence homestead that exceeds the sum of: |
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(1) 105 percent of the appraised value of the property |
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for the preceding year; and |
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(2) the market value of all new improvements to the |
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property. |
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(f) If the collection of [delinquent] taxes on the property |
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was deferred in a prior tax year and the sum of the amounts |
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described by Subsections (a)(1) and (2) exceeds the appraised value |
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of the property for the current tax year, the amount of taxes the |
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collection of which may be deferred is reduced by the amount |
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calculated by multiplying the taxing unit's tax rate for the |
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current year by the amount by which that sum exceeds the appraised |
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value of the property. |
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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 |
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is deferred or abated remain delinquent on or after the 91st day |
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after 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. Section 33.065(g), Tax Code, as amended by this |
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Act, applies only to interest that accrues during a deferral or |
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abatement period on or after the effective date of this Act, |
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regardless of whether the deferral or abatement period began before |
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that date or begins on or after that date. Interest that accrued |
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during a deferral or abatement period before the effective date of |
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this Act is governed by the law in effect when the interest accrued, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect January 1, 2020. |