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.