Texas HB739 modifies the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods.

Texas HB739 amends the Tax Code to change the interest rate during deferral or abatement periods for ad valorem taxes on certain residence homesteads. The annual interest rate during these periods will be 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 accruing during deferral or abatement periods on or after September 1, 2025. The bill also specifies that a tax lien remains on the property and interest continues to accrue during the deferral or abatement period.

Texas HB739 modifies the interest rate for ad valorem taxes on certain residence homesteads during deferral or abatement periods.

Texas HB739 amends the Tax Code to change the interest rate during deferral or abatement periods for ad valorem taxes on certain residence homesteads. The annual interest rate during these periods will be 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 accruing during deferral or abatement periods on or after September 1, 2025. The bill also specifies that a tax lien remains on the property and interest continues to accrue during the deferral or abatement period.