88R2200 RDS-D
 
  By: Schofield H.B. No. 721
 
 
 
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 lower of the five-year
  Constant Maturity Treasury Rate reported by the Federal Reserve
  Board as of January 1 of that year or 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 33.06(d), Tax Code, as amended by this
  Act, applies to interest that accrued during a deferral or
  abatement period under that section before September 1, 2023, if
  the tax remains unpaid as of that date, and applies to interest that
  accrues during a deferral or abatement period under that section on
  or after that date, regardless of whether the deferral or abatement
  period began before September 1, 2023, or begins on or after that
  date.
         SECTION 3.  This Act takes effect September 1, 2023.