S.B. No. 798
AN ACT
relating to refunds of overpayments or erroneous payments of ad
valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.11, Tax Code, is amended by amending
Subsections (a) and (c) and adding Subsection (i) to read as
follows:
(a) If a taxpayer applies to the tax collector of a taxing
unit for a refund of an overpayment or erroneous payment of taxes,
[and] the collector [auditor] for the unit determines that the
payment was erroneous or excessive, and the auditor for the unit
agrees with the collector's determination, the [tax] collector
shall refund the amount of the excessive or erroneous payment from
available current tax collections or from funds appropriated by the
unit for making refunds. However, the collector may not make the
refund unless:
(1) in the case of a collector who collects taxes for
one taxing unit, the governing body of the taxing unit also
determines that the payment was erroneous or excessive and approves
the refund if the amount of the refund exceeds:
(A) $2,500 for a refund to be paid by a county
with a population of 1.5 million or more; or
(B) $500 for a refund to be paid by any other
taxing unit; or
(2) in the case of a collector who collects taxes for
more than one taxing unit, the governing body of the taxing unit
that employs the collector also determines that the payment was
erroneous or excessive and approves the refund if the amount of the
refund exceeds $2,500.
(c) Except as provided by Subsection (c-1), an application
for a refund must be made within three years after the date of the
payment or the taxpayer waives the right to the refund. A taxpayer
may apply for a refund by filing:
(1) an application on a form prescribed by the
comptroller by rule; or
(2) a written request that includes information
sufficient to enable the collector and the auditor for the taxing
unit and, if applicable, the governing body of the taxing unit to
determine whether the taxpayer is entitled to the refund.
(i) Notwithstanding the other provisions of this section,
in the case of an overpayment or erroneous payment of taxes
submitted by a taxpayer to a collector who collects taxes for one or
more taxing units one of which is a county with a population of two
million or more:
(1) a taxpayer is not required to apply to the
collector for the refund to be entitled to receive the refund if the
amount of the refund is at least $5 but does not exceed $5,000; and
(2) the collector is not required to comply with
Subsection (g) unless the amount of the payment exceeds by more than
$5,000 the amount of taxes owed for a tax year to a taxing unit for
which the collector collects taxes.
SECTION 2. Subsection (c), Section 11.438, Tax Code, is
amended to read as follows:
(c) If a late application is approved after approval of the
appraisal records for a year for which the exemption is granted, the
chief appraiser shall notify the collector for each taxing unit in
which the property was taxable in that year. The collector shall
deduct from the organization's tax bill the amount of tax imposed on
the property for that year and any penalties and interest relating
to that tax if the tax and related penalties and interest have not
been paid. If the tax and related penalties and interest on the
property for a tax year for which an exemption is granted under this
section were paid under protest, the organization is eligible [may
apply] for a refund of the tax, penalties, and interest paid as
provided by Section 31.11. The deadline prescribed by Section
31.11(c) for applying for a refund does not apply to a refund under
this section.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 4. This Act takes effect January 1, 2010.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 798 passed the Senate on
May 12, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 798 passed the House on
May 26, 2009, by the following vote: Yeas 146, Nays 0, one present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor