1-1     By:  Brown                                            S.B. No. 1393
 1-2           (In the Senate - Filed March 11, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 8, 1999, reported favorably by the following vote:
 1-5     Yeas 5, Nays 0; April 8, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to refunds of overpayments or erroneous payments of ad
 1-9     valorem taxes.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subsection (a), Section 31.11, Tax Code, is
1-12     amended to read as follows:
1-13           (a)  If a taxpayer applies to the tax collector of a taxing
1-14     unit for a refund of an overpayment or erroneous payment of taxes
1-15     and the auditor for the unit determines that the payment was
1-16     erroneous or excessive, the tax collector shall refund the amount
1-17     of the excessive or erroneous payment from available current tax
1-18     collections or from funds appropriated by the unit for making
1-19     refunds.  However, [if the amount of the refund exceeds $500,] the
1-20     collector may not make the refund unless the governing body of the
1-21     taxing unit also determines that the payment was erroneous or
1-22     excessive and approves the refund if the amount of the refund
1-23     exceeds:
1-24                 (1)  $2,500 for a refund to be paid by a county with a
1-25     population of 2.8 million or more; or
1-26                 (2)  $500 for a refund to be paid by any other taxing
1-27     unit.
1-28           SECTION 2.  Subsection (b), Section 31.12, Tax Code, is
1-29     amended to read as follows:
1-30           (b)  For purposes of this section, liability for a refund
1-31     arises:
1-32                 (1)  if the refund is required by Section 11.431(b), on
1-33     the date the chief appraiser notifies the collector for the unit of
1-34     the approval of the late homestead exemption;
1-35                 (2)  if the refund is required by Section 26.07(g), on
1-36     the date the results of the election to reduce the tax rate are
1-37     certified;
1-38                 (3)  if the refund is required by Section 26.15(f):
1-39                       (A)  for a correction to the tax roll made under
1-40     Section 26.15(b), on the date the change in the tax roll is
1-41     certified to the assessor for the taxing unit under Section 25.25;
1-42     or
1-43                       (B)  for a correction to the tax roll made under
1-44     Section 26.15(c), on the date the change in the tax roll is ordered
1-45     by the governing body of the taxing unit; or
1-46                 (4)  if the refund is required by Section 31.11, on the
1-47     date the auditor for the taxing unit determines that the payment
1-48     was erroneous or excessive or, if the amount of the refund exceeds
1-49     the applicable amount specified by Section 31.11(a) [$500], on the
1-50     date the governing body of the unit approves the refund [determines
1-51     that the payment was erroneous or excessive].
1-52           SECTION 3.  This Act takes effect September 1, 1999, and
1-53     applies only to an application for a refund of an overpayment or
1-54     erroneous payment of ad valorem taxes filed with the tax collector
1-55     of a taxing unit on or after the effective date of this Act.  An
1-56     application for a refund of an overpayment or erroneous payment of
1-57     ad valorem taxes filed with the tax collector of a taxing unit
1-58     before the effective date of this Act is governed by the law as it
1-59     existed on the date the refund application was filed, and that law
1-60     is continued in effect for that purpose.
1-61           SECTION 4.  The importance of this legislation and the
1-62     crowded condition of the calendars in both houses create an
1-63     emergency and an imperative public necessity that the
1-64     constitutional rule requiring bills to be read on three several
 2-1     days in each house be suspended, and this rule is hereby suspended.
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