H.B. No. 1090
AN ACT
relating to the calculation of interest on certain ad valorem tax
refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.43(b), Tax Code, is amended to read as
follows:
(b) For a refund made under this section [because an
exemption under Section 11.20 that was denied by the chief
appraiser or appraisal review board is granted], the taxing unit
shall include with the refund interest on the amount refunded
calculated at an annual rate that is equal to the sum of two percent
and the most recent prime rate quoted and [auction average rate
quoted on a bank discount basis for three-month treasury bills
issued by the United States government, as] published by the
Federal Reserve Board as of the first day of the month in which the
refund is made [, for the week in which the taxes became
delinquent], but not more than a total of eight [10] percent,
calculated from the delinquency date for the taxes until the date
the refund is made. [For any other refund made under this section,
the taxing unit shall include with the refund interest on the amount
refunded at an annual rate of eight percent, calculated from the
delinquency date for the taxes until the date the refund is made.]
SECTION 2. The change in law made by this Act applies only
to the rate of interest on a tax refund that is made following an
appeal that is filed on or after the effective date of this Act. The
rate of interest on a tax refund that is made following an appeal
that is filed before the effective date of this Act is determined by
the law in effect when the appeal is filed, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1090 was passed by the House on May 5,
2011, by the following vote: Yeas 146, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1090 on May 25, 2011, by the following vote: Yeas 143, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1090 was passed by the Senate, with
amendments, on May 23, 2011, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor