Texas Senate Bill SB1749

Texas 2017 - 85th Regular

Caption

Relating to the calculation of interest on an ad valorem tax refund resulting from the final determination of an appeal that decreases a property owner's liability.

Impact

One significant impact of SB1749 is the stipulation that if a taxing unit fails to issue a tax refund, alongside interest, within 60 days of the certification of a correction to the appraisal roll, the interest rate jumps to 12%. This change aims to incentivize prompt action by taxing units to avoid financial penalties, thereby benefiting tax-payers who might otherwise face delays. The bill seeks to balance the interests of both taxpayers and local taxing authorities by making the refund process more consistent and predictable.

Summary

SB1749 addresses the calculation of interest on ad valorem tax refunds that arise from appeals which result in a decreased liability for property owners. The bill proposes amendments to the Tax Code that would establish specific interest rates applied to refunds at 9.5% or 12%, depending on the circumstances of the refund. This change aims to provide clarity and fairness regarding the financial implications of tax appeals for property owners. SB1749 highlights the need for more structured parameters around how refunds should be handled, particularly emphasizing timely reimbursements from taxing units.

Contention

Although the bill appears primarily technical, it may face scrutiny regarding the potential financial repercussions for local governments, especially smaller taxing units that may struggle with the requirement to expedite refunds. The adjustments in interest calculation could be debated as well, particularly around how they might affect local budget planning. Detractors of the bill might argue it imposes additional burdens on local entities while supporters would counter that it protects taxpayers from unnecessary delays and financial risks associated with the appeal process.