| 1 | 1 | | 85R6698 CJC-F |
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| 2 | 2 | | By: Seliger S.B. No. 931 |
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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 authority to waive certain penalties and interest |
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| 8 | 8 | | in order to facilitate the settlement of an ad valorem tax appeal. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 42.42(c), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (c) If the final determination of an appeal occurs after the |
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| 13 | 13 | | property owner has paid a portion of the tax finally determined to |
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| 14 | 14 | | be due as required by Section 42.08, the assessor for each affected |
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| 15 | 15 | | taxing unit shall prepare and mail a supplemental tax bill in the |
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| 16 | 16 | | form and manner prescribed by Subsection (b). The additional tax is |
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| 17 | 17 | | due and becomes delinquent as provided by Subsection (b), but the |
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| 18 | 18 | | property owner is liable for penalties and interest on the tax |
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| 19 | 19 | | included in the supplemental bill calculated as provided by Section |
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| 20 | 20 | | 33.01 as if the tax included in the supplemental bill became |
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| 21 | 21 | | delinquent on the original delinquency date prescribed by Chapter |
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| 22 | 22 | | 31. If the final determination of the appeal occurs pursuant to a |
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| 23 | 23 | | settlement agreement filed with the court, the property owner and |
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| 24 | 24 | | the chief appraiser may agree to waive the penalties and interest |
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| 25 | 25 | | otherwise required by this subsection on the additional tax due |
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| 26 | 26 | | each affected taxing unit as a term of the settlement agreement. |
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| 27 | 27 | | SECTION 2. Section 42.43(b), Tax Code, is amended to read as |
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| 28 | 28 | | follows: |
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| 29 | 29 | | (b) For a refund made under this section, the taxing unit |
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| 30 | 30 | | shall include with the refund interest on the amount refunded |
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| 31 | 31 | | calculated at an annual rate of 9.5 percent, calculated from the |
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| 32 | 32 | | delinquency date for the taxes until the date the refund is made. |
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| 33 | 33 | | If the final determination of the appeal occurs pursuant to a |
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| 34 | 34 | | settlement agreement filed with the court, the property owner and |
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| 35 | 35 | | the chief appraiser may agree to waive the interest otherwise |
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| 36 | 36 | | required by this subsection on the amount refunded to the property |
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| 37 | 37 | | owner as a term of the settlement agreement. |
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| 38 | 38 | | SECTION 3. The change in law made by this Act applies to an |
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| 39 | 39 | | appeal under Chapter 42, Tax Code, that is pending on the effective |
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| 40 | 40 | | date of this Act or that is filed on or after that date. |
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| 41 | 41 | | SECTION 4. This Act takes effect immediately if it receives |
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| 42 | 42 | | a vote of two-thirds of all the members elected to each house, as |
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| 43 | 43 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 44 | 44 | | Act does not receive the vote necessary for immediate effect, this |
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| 45 | 45 | | Act takes effect September 1, 2017. |
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