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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. 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 in |
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effect for each calendar year or portion of a calendar year during |
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the deferral or abatement period is the lower of the five-year |
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Constant Maturity Treasury Rate reported by the Federal Reserve |
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Board as of January 1 of that year or five percent instead of the |
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rate provided by Section 33.01. Interest and penalties that |
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accrued or that were incurred or imposed under Section 33.01 or |
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33.07 before the date the individual files the deferral affidavit |
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under Subsection (b) or the date the judgment abating the suit is |
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entered, as applicable, are preserved. A penalty under Section |
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33.01 is not incurred during a deferral or abatement period. The |
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additional penalty under Section 33.07 may be imposed and collected |
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only if the taxes for which collection is deferred or abated remain |
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delinquent on or after the 181st day after the date the deferral or |
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abatement period expires. A plea of limitation, laches, or want of |
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prosecution does not apply against the taxing unit because of |
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deferral or abatement of collection as provided by this section. |
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SECTION 2. Section 33.06(d), Tax Code, as amended by this |
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Act, applies to interest that accrued during a deferral or |
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abatement period under that section before September 1, 2023, if |
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the tax remains unpaid as of that date, and applies to interest that |
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accrues during a deferral or abatement period under that section on |
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or after that date, regardless of whether the deferral or abatement |
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period began before September 1, 2023, or begins on or after that |
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date. |
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SECTION 3. This Act takes effect September 1, 2023. |