HBA-AMW S.B. 863 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 863
By: Staples
Ways & Means
4/24/2001
Engrossed



BACKGROUND AND PURPOSE 

Current law provides no deadline by which a taxing unit must pay a property
tax refund to a property owner.  If a refund is occasioned by the appraisal
district's denial of an exemption that is later granted, a taxing unit must
pay the property owner interest on the refunded amount at a floating annual
rate not to exceed 10 percent.  For all other refunds, a taxing unit is
required to include with the refund interest on the refunded amount at an
annual rate of eight percent.  Senate Bill 863 establishes a deadline for a
taxing unit to refund overpayment of taxes to property owners, requires
interest to be included with delinquent refunds, and entitles certain
property owners who prevail in a suit to compel a refund to collect court
costs and reasonable attorney's fees. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 863 amends the Tax Code to require a taxing unit to include
with a refund for the difference between the amount of taxes paid and
amount of taxes for which a property owner is liable interest on the amount
refunded at an annual rate of 12 percent, calculated from the delinquency
date for the taxes until the date the refund is made if the taxing unit
does not make a refund, including interest, before the 60th day after the
date the chief appraiser certifies a correction to the appraisal roll.  The
bill also provides that a property owner who prevails in a suit to compel a
refund, including interest, that is filed on or after the 180th day after
the date the chief appraiser certifies a correction to the appraisal roll
is entitled to court costs and reasonable attorney's fees. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.