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.

HB 739 changes the interest rate applied to property taxes deferred or abated for certain primary residences (homesteads) in Texas. It sets the annual interest rate during deferral at the lower of the 5-year Treasury rate or 5%, replacing the previous rate. The bill preserves interest accrued before deferral but waives penalties during the deferral period, with penalties only applying if taxes remain unpaid more than 181 days after the deferral ends. It affects homeowners who qualify for tax deferral under existing law, reducing their interest costs during the deferral period. The bill takes effect September 1, 2025.