85R3689 SMT-F
By: Hinojosa S.B. No. 1749
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 42.43(b) and (c), Tax Code, are amended
to read as follows:
(b) For a refund made under this section, the taxing unit
shall include with the refund interest on all or a portion of the
amount refunded, calculated at an annual rate of 9.5 percent,
calculated from the delinquency date for the taxes until the date
the refund is made. The court that makes the final determination of
the appeal shall, in its discretion, determine the amount on which
interest is to be calculated, provided that the amount is:
(1) not greater than the amount refunded under
Subsection (a); and
(2) not less than the difference between the minimum
amount the taxpayer was required to pay to preserve the right to
appeal under Section 42.08(b) and the amount of taxes for which the
property owner is liable.
(c) Notwithstanding Subsection (b), if a taxing unit does
not make a refund, including interest, required by this section
before the 60th day after the date the chief appraiser certifies a
correction to the appraisal roll under Section 42.41, the taxing
unit shall include with the refund interest on the amount
determined by the court under Subsection (b) [refunded] at an
annual rate of 12 percent, calculated from the delinquency date for
the taxes until the date the refund is made. A refund is not
considered made under this section until sent to the proper person
as provided by this section.
SECTION 2. The change in law made by this Act applies only
to a tax refund that is made following an appeal that is filed on or
after the effective date of this Act. 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 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, 2017.