| 1 | 1 | | By: Seliger S.B. No. 641 |
|---|
| 2 | 2 | | (In the Senate - Filed February 14, 2011; February 23, 2011, |
|---|
| 3 | 3 | | read first time and referred to Committee on Intergovernmental |
|---|
| 4 | 4 | | Relations; April 18, 2011, reported adversely, with favorable |
|---|
| 5 | 5 | | Committee Substitute by the following vote: Yeas 5, Nays 0; |
|---|
| 6 | 6 | | April 18, 2011, sent to printer.) |
|---|
| 7 | 7 | | COMMITTEE SUBSTITUTE FOR S.B. No. 641 By: Nichols |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | |
|---|
| 10 | 10 | | A BILL TO BE ENTITLED |
|---|
| 11 | 11 | | AN ACT |
|---|
| 12 | 12 | | relating to the calculation of interest on certain ad valorem tax |
|---|
| 13 | 13 | | refunds. |
|---|
| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 15 | 15 | | SECTION 1. Subsection (b), Section 42.43, Tax Code, is |
|---|
| 16 | 16 | | amended to read as follows: |
|---|
| 17 | 17 | | (b) For a refund made under this section [because an |
|---|
| 18 | 18 | | exemption under Section 11.20 that was denied by the chief |
|---|
| 19 | 19 | | appraiser or appraisal review board is granted], the taxing unit |
|---|
| 20 | 20 | | shall include with the refund interest on the amount refunded |
|---|
| 21 | 21 | | calculated at an annual rate that is equal to the sum of two percent |
|---|
| 22 | 22 | | and the most recent prime rate quoted and [auction average rate |
|---|
| 23 | 23 | | quoted on a bank discount basis for three-month treasury bills |
|---|
| 24 | 24 | | issued by the United States government, as] published by the |
|---|
| 25 | 25 | | Federal Reserve Board[, for the week in which the taxes became |
|---|
| 26 | 26 | | delinquent], but not more than a total of eight [10] percent, |
|---|
| 27 | 27 | | calculated from the delinquency date for the taxes until the date |
|---|
| 28 | 28 | | the refund is made. [For any other refund made under this section, |
|---|
| 29 | 29 | | the taxing unit shall include with the refund interest on the amount |
|---|
| 30 | 30 | | refunded at an annual rate of eight percent, calculated from the |
|---|
| 31 | 31 | | delinquency date for the taxes until the date the refund is made.] |
|---|
| 32 | 32 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 33 | 33 | | to the rate of interest on a tax refund that is made following an |
|---|
| 34 | 34 | | appeal that is finally determined on or after the effective date of |
|---|
| 35 | 35 | | this Act. The rate of interest on a tax refund that is made |
|---|
| 36 | 36 | | following an appeal that is finally determined before the effective |
|---|
| 37 | 37 | | date of this Act is determined by the law in effect when the appeal |
|---|
| 38 | 38 | | is finally determined, and that law is continued in effect for that |
|---|
| 39 | 39 | | purpose. |
|---|
| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2011. |
|---|
| 41 | 41 | | * * * * * |
|---|