| 1 | 1 | | 85R3689 SMT-F |
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| 2 | 2 | | By: Hinojosa S.B. No. 1749 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the calculation of interest on an ad valorem tax refund |
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| 8 | 8 | | resulting from the final determination of an appeal that decreases |
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| 9 | 9 | | a property owner's liability. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Sections 42.43(b) and (c), Tax Code, are amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | (b) For a refund made under this section, the taxing unit |
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| 14 | 14 | | shall include with the refund interest on all or a portion of the |
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| 15 | 15 | | amount refunded, calculated at an annual rate of 9.5 percent, |
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| 16 | 16 | | calculated from the delinquency date for the taxes until the date |
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| 17 | 17 | | the refund is made. The court that makes the final determination of |
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| 18 | 18 | | the appeal shall, in its discretion, determine the amount on which |
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| 19 | 19 | | interest is to be calculated, provided that the amount is: |
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| 20 | 20 | | (1) not greater than the amount refunded under |
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| 21 | 21 | | Subsection (a); and |
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| 22 | 22 | | (2) not less than the difference between the minimum |
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| 23 | 23 | | amount the taxpayer was required to pay to preserve the right to |
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| 24 | 24 | | appeal under Section 42.08(b) and the amount of taxes for which the |
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| 25 | 25 | | property owner is liable. |
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| 26 | 26 | | (c) Notwithstanding Subsection (b), if a taxing unit does |
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| 27 | 27 | | not make a refund, including interest, required by this section |
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| 28 | 28 | | before the 60th day after the date the chief appraiser certifies a |
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| 29 | 29 | | correction to the appraisal roll under Section 42.41, the taxing |
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| 30 | 30 | | unit shall include with the refund interest on the amount |
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| 31 | 31 | | determined by the court under Subsection (b) [refunded] at an |
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| 32 | 32 | | annual rate of 12 percent, calculated from the delinquency date for |
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| 33 | 33 | | the taxes until the date the refund is made. A refund is not |
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| 34 | 34 | | considered made under this section until sent to the proper person |
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| 35 | 35 | | as provided by this section. |
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| 36 | 36 | | SECTION 2. The change in law made by this Act applies only |
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| 37 | 37 | | to a tax refund that is made following an appeal that is filed on or |
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| 38 | 38 | | after the effective date of this Act. A tax refund that is made |
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| 39 | 39 | | following an appeal that is filed before the effective date of this |
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| 40 | 40 | | Act is determined by the law in effect when the appeal is filed, and |
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| 41 | 41 | | that law is continued in effect for that purpose. |
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| 42 | 42 | | SECTION 3. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2017. |
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