Texas HB53 modifies the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods.

Texas HB53 amends the Tax Code to change the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods. The annual interest rate is set as 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. This change applies to interest accrued during deferral or abatement periods before December 1, 2025, if the tax remains unpaid as of that date, and to interest accruing during such periods on or after that date.

Texas HB53 modifies the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods.

Texas HB53 amends the Tax Code to change the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods. The annual interest rate is set as 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. This change applies to interest accrued during deferral or abatement periods before December 1, 2025, if the tax remains unpaid as of that date, and to interest accruing during such periods on or after that date.