SRC-AXB H.B. 2220 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2220
By: Hilbert (Brown)
Intergovernmental Relations
5/10/1999
Engrossed


DIGEST 

Currently, a tax collector is prohibited from paying a refund of an
erroneous tax payment of more than $500 without governing body approval.
In populous counties, the governing body approval requirement can create an
administrative burden.  H.B. 2220 allows a tax collector to make a maximum
$2,500 refund without the approval of the governing body. 

PURPOSE

As proposed, H.B. 2220 specifies the amount of refund for overpayments or
erroneous payments of ad valorem taxes, and clarifies the entity which is
responsible for determining the refund. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 31.11(a), Tax Code, to prohibit the collector
from making a refund unless the governing body of a taxing unit that
collects another unit's taxes determines that the payment was incorrect and
if the refund amount exceeds certain dollar amounts.  Deletes text
regarding $500. 

SECTION 2.  Amends Section 31.12(b), Tax Code, to provide that liability
for a refund arises when a certain entity determines that the ad valorem
tax payment was incorrect, on the date the governing body of the unit
approves the refund, rather than determines that the payment was erroneous
or excessive.  

SECTION 3.Effective date:  September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.  Emergency clause.