AN ACT

 1-1     relating to a late application by a veteran's organization for an

 1-2     exemption from ad valorem taxation.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter C, Chapter 11, Tax Code, is amended by

 1-5     adding Section 11.438 to read as follows:

 1-6           Sec. 11.438.  LATE APPLICATION FOR VETERAN'S ORGANIZATION

 1-7     EXEMPTION.  (a)  The chief appraiser shall accept and approve or

 1-8     deny an application for an exemption under Section 11.23(a) after

 1-9     the filing deadline provided by Section 11.43 if the application is

1-10     filed not later than December 31 of the third year after the year

1-11     in which the taxes for which the exemption is claimed were imposed.

1-12           (b)  If the taxes and related penalties and interest imposed

1-13     on the property for the year for which the exemption is claimed are

1-14     paid before an application is filed under this section, the chief

1-15     appraiser may approve the late application for an exemption only on

1-16     a showing that the taxes, penalties, and interest were paid under

1-17     protest.

1-18           (c)  If a late application is approved after approval of the

1-19     appraisal records for a year for which the exemption is granted,

1-20     the chief appraiser shall notify the collector for each taxing unit

1-21     in which the property was taxable in that year.  The collector

1-22     shall deduct from the organization's tax bill the amount of tax

1-23     imposed on the property for that year and any penalties and

 2-1     interest relating to that tax if the tax and related penalties and

 2-2     interest have not been paid.  If the tax and related penalties and

 2-3     interest on the property for a tax year for which an exemption is

 2-4     granted under this section were paid under protest, the

 2-5     organization may apply for a refund of the tax, penalties, and

 2-6     interest paid as provided by Section 31.11.  Section 31.11(c) does

 2-7     not apply to a refund under this section.

 2-8           (d)  An application may not be filed under this section after

 2-9     December 31, 1998.

2-10           SECTION 2.  This Act takes effect September 1, 1997.

2-11           SECTION 3.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1438 passed the Senate on

         April 24, 1997, by the following vote:  Yeas 29, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1438 passed the House on

         May 28, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor