BILL ANALYSIS



S.B. 101
By: Bivins (Craddick)
May 16, 1995
Committee Report (Unamended)


BACKGROUND

Currently, the Tax Code provides methods for property owners to
protest appraised property values, and to appeal a determination of
an appraisal review board.  Section 42.08, Tax Code, provides that
property owners must pay the uncontested portion of their taxes by
the delinquency date, or forfeit the right to proceed to a final
determination.  Similarly, if the taxes are paid, but no protest
has been filed, the taxpayer may not then sue the taxing entity. 
Therefore, there is no remedy for taxpayers to recoup taxes paid,
if the tax is later determined to be illegal.

PURPOSE

S.B. 101 provides that payment of an ad valorem tax is involuntary
if the taxpayer indicates that the tax is paid under protest on the
instrument by which the tax is paid or in a document accompanying
the payment.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.115
           PAYMENT OF TAX UNDER PROTEST.  

           Provides that payment of an ad valorem tax is
           involuntary if the taxpayer indicates the tax is paid
           under protest on the instrument by which the tax is paid
           or in a document accompanying the payment.

SECTION 2. Emergency Clause.

SUMMARY OF COMMITTEE ACTION

Pursuant to an announcement on the House floor, the committee met
in a formal meeting on May 15, 1995.  The chair laid out S.B. 101. 
By a record vote of 7 ayes, 0 nays, 0 present not voting, and 4
absent, the committee voted to report S.B. 101 to the House without
amendment with the recommendation that it do pass.