By Talton H.B. No. 3325
75R5012 SMH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the rate of interest on a refund of ad valorem taxes
1-3 made by a taxing unit.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 42.43(b), Tax Code, is amended to read as
1-6 follows:
1-7 (b) For a refund made under this section because an
1-8 exemption under Section 11.20 that was denied by the chief
1-9 appraiser or appraisal review board is granted, the taxing unit
1-10 shall include with the refund interest on the amount refunded
1-11 calculated at an annual rate that is equal to the auction average
1-12 rate quoted on a bank discount basis for three-month treasury bills
1-13 issued by the United States government, as published by the Federal
1-14 Reserve Board, for the week in which the taxes became delinquent,
1-15 but not more than 10 percent, calculated from the delinquency date
1-16 for the taxes until the date the refund is made. For any other
1-17 refund made under this section, the taxing unit shall include with
1-18 the refund interest on the amount refunded at an annual rate of
1-19 [that is equal to the auction average rate quoted on a bank
1-20 discount basis for three-month treasury bills issued by the United
1-21 States government, as published by the Federal Reserve Board, for
1-22 the week in which the taxes became delinquent, but not more than]
1-23 eight percent, calculated from the delinquency date for the taxes
1-24 until the date the refund is made.
2-1 SECTION 2. The change in law made by this Act applies only
2-2 to the rate of interest on a tax refund that accrues on or after
2-3 the effective date of this Act. The rate of interest on a tax
2-4 refund that accrued before the effective date of this Act is
2-5 determined by the law in effect when the interest accrued, and that
2-6 law is continued in effect for that purpose.
2-7 SECTION 3. This Act takes effect September 1, 1997.
2-8 SECTION 4. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended.