BILL ANALYSIS


                                                     C.S.S.B. 101
                                                       By: Bivins
                                                          Finance
                                                          5-10-95
                                   Committee Report (Substituted)

BACKGROUND

The doctrine of voluntary payment may be used under current Texas
law to prevent an individual from filing a lawsuit with regard to
the payment of ad valorem taxes.  As a result of this doctrine,
individuals who pay their taxes have no remedy, nor can they
benefit from other successful lawsuits, if a tax is later held to
be unconstitutional.  

PURPOSE

As proposed, C.S.S.B. 101 provides that a 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.115,
as follows:

     Sec. 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.
           Effective date: upon passage.