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Senate Bill 551 |
Senate Author: Williams et al. |
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Effective: 9-1-11 |
House Sponsor: Otto |
Senate Bill 551 amends the Tax Code to establish that back taxes assessed on an improvement to real property do not incur interest if the land on which the improvement is located did not escape taxation in the year in which the improvement escaped taxation, the appraisal district had actual or constructive notice of the presence of the improvement in the year in which the improvement escaped taxation, and the property owner pays all back taxes due on the improvement not later than the 120th day after the date the tax bill for the back taxes on the improvement is sent. If an appeal through binding arbitration or judicial review relating to the taxes imposed on the omitted improvement is pending on the 120th day after the date the tax bill is sent, the property owner is considered to have paid the back taxes due by that date if the property owner pays taxes on the property subject to the appeal in an amount equal to the amount of taxes due on the portion of the taxable value of the property that is not in dispute or the amount of taxes due on the property under the order from which the appeal is taken, as applicable.
The bill requires a tax bill that includes back taxes on an improvement that escaped taxation in a prior year to state that no interest is due on the back taxes if those back taxes are paid not later than the 120th day after the date the tax bill is sent.