82R8097 ALL-D
By: Lucio S.B. No. 1384
A BILL TO BE ENTITLED
AN ACT
relating to the interest rate on a refund of ad valorem taxes made
following the final determination of an appeal that decreases a
property owner's tax liability.
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 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, for the week in which the taxes became delinquent,
but not more than 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 that is
equal to the annual rate of interest paid by the bank on funds
deposited in the account maintained by the tax collector for the
taxing unit from which refunds are disbursed as of the date on which
the final determination of the appeal is made, but not more than
[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 a refund made under Section 42.43, Tax Code, on or after the
effective date of this Act. A refund made under that section before
the effective date of this Act is governed by the law in effect on
the date the refund was made, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.