By Hilbert                                            H.B. No. 2220
         76R6300 GJH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to refunds of overpayments or erroneous payments of ad
 1-3     valorem taxes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 31.11(a), Tax Code, is amended to read as
 1-6     follows:
 1-7           (a)  If a taxpayer applies to the tax collector of a taxing
 1-8     unit for a refund of an overpayment or erroneous payment of taxes
 1-9     and the auditor for the unit determines that the payment was
1-10     erroneous or excessive, the tax collector shall refund the amount
1-11     of the excessive or erroneous payment from available current tax
1-12     collections or from funds appropriated by the unit for making
1-13     refunds.  However, [if the amount of the refund exceeds $500,] the
1-14     collector may not make the refund unless the governing body of the
1-15     taxing unit also determines that the payment was erroneous or
1-16     excessive and approves the refund if the amount of the refund
1-17     exceeds:
1-18                 (1)  $2,500 for a refund to be paid by a county with a
1-19     population of 2.8 million or more; or
1-20                 (2)  $500 for a refund to be paid by any other taxing
1-21     unit.
1-22           SECTION 2.  Section 31.12(b), Tax Code, is amended to read as
1-23     follows:
1-24           (b)  For purposes of this section, liability for a refund
 2-1     arises:
 2-2                 (1)  if the refund is required by Section 11.431(b), on
 2-3     the date the chief appraiser notifies the collector for the unit of
 2-4     the approval of the late homestead exemption;
 2-5                 (2)  if the refund is required by Section 26.07(g), on
 2-6     the date the results of the election to reduce the tax rate are
 2-7     certified;
 2-8                 (3)  if the refund is required by Section 26.15(f):
 2-9                       (A)  for a correction to the tax roll made under
2-10     Section 26.15(b), on the date the change in the tax roll is
2-11     certified to the assessor for the taxing unit under Section 25.25;
2-12     or
2-13                       (B)  for a correction to the tax roll made under
2-14     Section 26.15(c), on the date the change in the tax roll is ordered
2-15     by the governing body of the taxing unit; or
2-16                 (4)  if the refund is required by Section 31.11, on the
2-17     date the auditor for the taxing unit determines that the payment
2-18     was erroneous or excessive or, if the amount of the refund exceeds
2-19     the applicable amount specified by Section 31.11(a) [$500], on the
2-20     date the governing body of the unit approves the refund [determines
2-21     that the payment was erroneous or excessive].
2-22           SECTION 3.  This Act takes effect September 1, 1999, and
2-23     applies only to an application for a refund of an overpayment or
2-24     erroneous payment of ad valorem taxes filed with the tax collector
2-25     of a taxing unit on or after the effective date of this Act.  An
2-26     application for a refund of an overpayment or erroneous payment of
2-27     ad valorem taxes filed with the tax collector of a taxing unit
 3-1     before the effective date of this Act is governed by the law as it
 3-2     existed on the date the refund application was filed, and that law
 3-3     is continued in effect for that purpose.
 3-4           SECTION 4.  The importance of this legislation and the
 3-5     crowded condition of the calendars in both houses create an
 3-6     emergency and an imperative public necessity that the
 3-7     constitutional rule requiring bills to be read on three several
 3-8     days in each house be suspended, and this rule is hereby suspended.
 3-9                          COMMITTEE AMENDMENT NO. 1
3-10           Amend HB 2220 in SECTION 1, page 1, line 15 by amending
3-11     Section 31.11(a), Tax Code, after the word "unit" and before the
3-12     word "also" by adding the following:  "or the governing body of a
3-13     taxing unit that collects another unit's taxes".
3-14                                                                 Hilbert