HB739 - 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.

  89R1124 RDS-D     By: Schofield H.B. No. 739       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, 2025, 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, 2025, or begins on or after that   date.          SECTION 3.  This Act takes effect September 1, 2025.