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.