Texas Senate Bill SB931

Texas 2017 - 85th Regular

Caption

Relating to the authority to waive certain penalties and interest in order to facilitate the settlement of an ad valorem tax appeal.

Impact

The implementation of SB931 could have significant implications for property owners involved in tax appeals. It may provide flexibility in financial obligations during the settlement process, thereby reducing the stress and potential losses incurred while waiting for final determinations. This change is particularly relevant for property owners who may be disputing valuations or seeking reductions in taxes owed. By allowing for the waiver of penalties and interest, the bill could ultimately lead to a more amicable resolution of disputes between taxpayers and tax authorities.

Summary

SB931 aims to amend sections of the Texas Tax Code, specifically regarding the penalties and interest applicable to ad valorem tax appeals. The bill provides for the possibility of waiving penalties and interest if a settlement agreement is reached between the property owner and the chief appraiser during an appeal. This amendment seeks to facilitate negotiations and encourage property owners to settle disputes without incurring the additional financial burdens often associated with tax appeals.

Contention

While the bill has intentions of improving the efficiency and fairness of the ad valorem tax appeal process, it may face opposition from those who argue that waiving penalties and interest may set a precedent that could undermine the financial interests of taxing units. Critics might express concerns that such provisions could tempt property owners to delay settlements or engage in strategic appeals, knowing that penalties and interest can be waived. This concern could lead to debates about the long-term fiscal impacts on local governments and their ability to collect owed taxes in a timely manner.