SRC-SEW H.B. 2832 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2832
By: Smithee (Bivins)
Intergovernmental Relations
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, tax collecting authorities are not required to notify a
taxpayer of an overpayment.  A taxpayer who makes an overpayment of taxes
may submit a written request or submit a form provided by the comptroller
of public accounts within three years of making the payment; failure to do
so constitutes a waiver of the right to a refund. Many taxpayers in Texas
are unaware that an overpayment has occurred and thus have no reason to
request a refund. Currently, most jurisdictions in Texas have a mechanism
in place to notify taxpayers of overpayment, but some do not. H.B. 2832
requires the collector for a taxing unit to notify a taxpayer of an
overpayment of more than $5 and sets forth provisions regarding the refund
of duplicate payments.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 31.11, Tax Code, by adding Subsection (g), to
require the collector for the taxing unit, without charge, if a taxpayer
submits a payment of taxes that exceeds by $5 or more the amount of taxes
owed for a tax year to a taxing unit, to mail to the taxpayer or the
taxpayer's representative a written notice of the amount of the overpayment
accompanied by a refund application form. 
 
SECTION 2. Amends Chapter 31, Tax Code, by adding Section 31.111, as
follows: 
 
Sec. 31.111.  REFUNDS OF DUPLICATE PAYMENTS. Requires the collector for a
taxing unit who determines that a person erred in making a payment of taxes
because the identical taxes were paid by another person to refund the
amount of the taxes to the person who erred in making the payment.
Requires a refund under this section to be made as soon as practicable
after the collector discovers the erroneous payment.  Requires the refund
to be accompanied by a description of the property subject to the taxes
sufficient to identify the property.  Requires the collector, if the
property is assigned an account number, to include that number.  Requires
the collector, each month, to inform the auditor of each appropriate taxing
unit of refunds of taxes made under this section during the preceding
month. 
 
SECTION 3.  Amends Sections 31.12(a) and (b), Tax Code, to add a reference
to Section 31.111 and to provide that, for purposes of this section,
liability for a refund arises if the refund is required by Section 31.111,
on the date the collector for the taxing unit determines that the payment
was erroneous. 
 
SECTION 4. Effective date:  January 1, 2002.  Makes application of this Act
prospective.