SRC-SEW S.B. 863 77(R)BILL ANALYSIS


Senate Research CenterS.B. 863
By: Staples
Intergovernmental Relations
5/25/2001
Enrolled


DIGEST AND PURPOSE 

Currently, a taxing unit has no financial incentives to pay refunds
promptly since it is able to earn more than eight percent in the
marketplace on refunds that it holds.  In addition, a taxing unit earns 12
percent on delinquent taxes.  Taxing units have been known to hold back
refunds for long periods of time, even an entire year, after the refund
becomes due.  S.B. 863 requires a taxing unit to pay taxpayers the same
annual rate of interest that it charges a delinquent taxpayer--12
percent--if the taxing unit fails to pay a refund within 60 days after the
chief appraiser corrects the appraisal roll.  This bill also entitles a
property owner to recover court costs and reasonable attorney fees if a
taxing unit is delinquent in paying a refund that is due. 

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 42.43, Tax Code, by adding Subsections (c) and
(d), as follows: 

(c) Requires, notwithstanding Subsection (b), that if a taxing unit does
not make a refund, including interest, required by this section before the
60th day after the date the chief appraiser corrects the appraisal roll
under Section 42.41, the taxing unit must include with the refund interest
on the amount refunded at an annual rate of 12 percent, calculated from the
delinquency date for the taxes until the date the refund is made. 

(d) Provides that a property owner who prevails in a suit to compel a
refund, including interest, required by this section that is filed on or
after the 180th day after the date the appraisal roll is corrected is
entitled to court costs and reasonable attorney's fees. 

SECTION 2. Makes application of this Act prospective.

SECTION 3.  Effective date:  upon passage or September 1, 2001.