85S10059 LHC-D
 
  By: Murphy H.B. No. 108
 
 
 
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.  (a)  This section takes effect only if the
  constitutional amendment proposed by H.J.R. 21, 85th Legislature,
  Regular Session, 2017, is approved by the voters.
         (b)  Section 33.06(d), Tax Code, as amended by H.B. 150, Acts
  of the 85th Legislature, Regular Session, 2017, effective January
  1, 2018, 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
  during the deferral or abatement period is the five-year Constant
  Maturity Treasury Rate reported by the Federal Reserve as of
  January 1 of the year in which the deferral or abatement was
  obtained [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.  (a)  This section takes effect only if the
  constitutional amendment proposed by H.J.R. 21, 85th Legislature,
  Regular Session, 2017, is not approved by the voters.
         (b)  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
  during the deferral or abatement period is the five-year Constant
  Maturity Treasury Rate reported by the Federal Reserve as of
  January 1 of the year in which the deferral or abatement was
  obtained [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 (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 3.  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 during the deferral or abatement period is the five-year
  Constant Maturity Treasury Rate reported by the Federal Reserve as
  of January 1 of the year in which the deferral or abatement was
  obtained [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 4.  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
  January 1, 2018, 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
  January 1, 2018, or begins on or after that date.
         SECTION 5.  This Act takes effect January 1, 2018.