Relating to the calculation of penalties and interest resulting from the final determination of an ad valorem tax appeal that changes a property owner's tax liability.
The enactment of SB1520 will likely streamline the process by which property tax liability changes are communicated to property owners after an appeal. The bill specifies conditions under which supplemental tax bills must be issued, particularly regarding penalties and interest accrued from adjustments made after a tax appeal. This aims to eliminate ambiguity surrounding tax obligations following such appeals, thereby providing greater clarity to both property owners and taxing authorities.
Bill SB1520 pertains to the calculations of penalties and interest stemming from the final determinations of ad valorem tax appeals that adjust a property owner's tax responsibilities. The bill modifies existing provisions of the Texas Tax Code, specifically Sections 42.42(c) and (d), to clarify how taxes are assessed in relation to property tax appeals. These changes are designed to establish clearer guidelines that affect property owners and the way taxing units prepare supplemental tax bills following a determination.
One notable aspect of the bill is the phased applicability of the changes, which only concern appeals that are filed after its effective date of September 1, 2019. This gradual implementation may raise points of contention among various stakeholders in municipal governance and taxation. Taxpayers may benefit from more transparent calculations of penalties and interest, yet concerns could be raised regarding the financial implications for taxing units as they adapt to these revisions.