| 1 | 1 | | 81R6546 SMH-D |
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| 2 | 2 | | By: Jackson H.B. No. 1247 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to refunds of overpayments or erroneous payments of ad |
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| 8 | 8 | | valorem taxes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 31.11, Tax Code, is amended by amending |
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| 11 | 11 | | Subsections (a) and (c) and adding Subsection (i) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (a) If a taxpayer applies to the tax collector of a taxing |
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| 14 | 14 | | unit for a refund of an overpayment or erroneous payment of taxes, |
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| 15 | 15 | | [and] the collector [auditor] for the unit determines that the |
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| 16 | 16 | | payment was erroneous or excessive, and the auditor for the unit |
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| 17 | 17 | | agrees with the collector's determination, the [tax] collector |
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| 18 | 18 | | shall refund the amount of the excessive or erroneous payment from |
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| 19 | 19 | | available current tax collections or from funds appropriated by the |
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| 20 | 20 | | unit for making refunds. However, the collector may not make the |
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| 21 | 21 | | refund unless: |
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| 22 | 22 | | (1) in the case of a collector who collects taxes for |
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| 23 | 23 | | one taxing unit, the governing body of the taxing unit also |
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| 24 | 24 | | determines that the payment was erroneous or excessive and approves |
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| 25 | 25 | | the refund if the amount of the refund exceeds: |
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| 26 | 26 | | (A) $2,500 for a refund to be paid by a county |
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| 27 | 27 | | with a population of 1.5 million or more; or |
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| 28 | 28 | | (B) $500 for a refund to be paid by any other |
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| 29 | 29 | | taxing unit; or |
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| 30 | 30 | | (2) in the case of a collector who collects taxes for |
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| 31 | 31 | | more than one taxing unit, the governing body of the taxing unit |
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| 32 | 32 | | that employs the collector also determines that the payment was |
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| 33 | 33 | | erroneous or excessive and approves the refund if the amount of the |
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| 34 | 34 | | refund exceeds $2,500. |
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| 35 | 35 | | (c) Except as provided by Subsection (c-1), an application |
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| 36 | 36 | | for a refund must be made within three years after the date of the |
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| 37 | 37 | | payment or the taxpayer waives the right to the refund. A taxpayer |
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| 38 | 38 | | may apply for a refund by filing: |
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| 39 | 39 | | (1) an application on a form prescribed by the |
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| 40 | 40 | | comptroller by rule; or |
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| 41 | 41 | | (2) a written request that includes information |
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| 42 | 42 | | sufficient to enable the collector and the auditor for the taxing |
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| 43 | 43 | | unit and, if applicable, the governing body of the taxing unit to |
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| 44 | 44 | | determine whether the taxpayer is entitled to the refund. |
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| 45 | 45 | | (i) Notwithstanding the other provisions of this section, |
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| 46 | 46 | | in the case of an overpayment or erroneous payment of taxes |
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| 47 | 47 | | submitted by a taxpayer to a collector who collects taxes for one or |
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| 48 | 48 | | more taxing units one of which is a county with a population of two |
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| 49 | 49 | | million or more: |
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| 50 | 50 | | (1) a taxpayer is not required to apply to the |
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| 51 | 51 | | collector for the refund to be entitled to receive the refund if the |
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| 52 | 52 | | amount of the refund is at least $5 but does not exceed $5,000; and |
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| 53 | 53 | | (2) the collector is not required to comply with |
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| 54 | 54 | | Subsection (g) unless the amount of the payment exceeds by more than |
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| 55 | 55 | | $5,000 the amount of taxes owed for a tax year to a taxing unit for |
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| 56 | 56 | | which the collector collects taxes. |
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| 57 | 57 | | SECTION 2. Section 11.438(c), Tax Code, is amended to read |
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| 58 | 58 | | as follows: |
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| 59 | 59 | | (c) If a late application is approved after approval of the |
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| 60 | 60 | | appraisal records for a year for which the exemption is granted, the |
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| 61 | 61 | | chief appraiser shall notify the collector for each taxing unit in |
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| 62 | 62 | | which the property was taxable in that year. The collector shall |
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| 63 | 63 | | deduct from the organization's tax bill the amount of tax imposed on |
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| 64 | 64 | | the property for that year and any penalties and interest relating |
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| 65 | 65 | | to that tax if the tax and related penalties and interest have not |
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| 66 | 66 | | been paid. If the tax and related penalties and interest on the |
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| 67 | 67 | | property for a tax year for which an exemption is granted under this |
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| 68 | 68 | | section were paid under protest, the organization is eligible [may |
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| 69 | 69 | | apply] for a refund of the tax, penalties, and interest paid as |
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| 70 | 70 | | provided by Section 31.11. The deadline prescribed by Section |
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| 71 | 71 | | 31.11(c) for applying for a refund does not apply to a refund under |
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| 72 | 72 | | this section. |
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| 73 | 73 | | SECTION 3. This Act applies only to ad valorem taxes imposed |
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| 74 | 74 | | for a tax year that begins on or after the effective date of this |
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| 75 | 75 | | Act. |
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| 76 | 76 | | SECTION 4. This Act takes effect January 1, 2010. |
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