H.B. No. 150

AN ACT
relating to the exemption from ad valorem taxation of, and the
deferral or abatement of ad valorem taxes on, certain residence
homesteads.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.132(b), Tax Code, is amended to read
as follows:
(b) A disabled veteran who has a disability rating of less
than 100 percent is entitled to an exemption from taxation of a
percentage of the appraised value of the disabled veteran’s
residence homestead equal to the disabled veteran’s disability
rating if the residence homestead was donated to the disabled
veteran by a charitable organization:
(1) at no cost to the disabled veteran; or
(2) at some cost to the disabled veteran in the form of
a cash payment, a mortgage, or both in an aggregate amount that is
not more than 50 percent of the good faith estimate of the market
value of the residence homestead made by the charitable
organization as of the date the donation is made.
SECTION 2. 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 five [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 11.132(b), Tax Code, as amended by this
Act, applies only to ad valorem taxes imposed for an ad valorem tax
year that begins on or after the effective date of this Act.
SECTION 4. Section 33.06(d), Tax Code, as amended by this
Act, applies only to interest that accrues during a deferral or
abatement period on or after the effective date of this Act,
regardless of whether the deferral or abatement period began before
that date or begins on or after that date. Interest that accrued
during a deferral or abatement period before the effective date of
this Act is governed by the law in effect when the interest accrued,
and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, authorizing the legislature to provide for
an exemption from ad valorem taxation of part of the market value of
the residence homestead of a partially disabled veteran or the
surviving spouse of a partially disabled veteran if the residence
homestead was donated to the disabled veteran by a charitable
organization for less than the market value of the residence
homestead and harmonizing certain related provisions of the Texas
Constitution is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.

______________________________ ______________________________
President of the Senate             Speaker of the House

I certify that H.B. No. 150 was passed by the House on May 8,
2017, by the following vote: Yeas 141, Nays 4, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 150 on May 25, 2017, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 150 on May 28, 2017, by the following vote: Yeas 147,
Nays 0, 2 present, not voting.

______________________________
Chief Clerk of the House

I certify that H.B. No. 150 was passed by the Senate, with
amendments, on May 23, 2017, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
150 on May 28, 2017, by the following vote: Yeas 31, Nays 0.

______________________________
Secretary of the Senate
APPROVED: __________________
Date

__________________
Governor