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


Senate Research CenterC.S.S.B. 863
77R11548 GJH-FBy: Staples
Intergovernmental Relations
4/4/2001
Committee Report (Substituted)


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.  C.S.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 certifies a correction to 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 that, notwithstanding Subsection (b), 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 certifies a correction to 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 chief appraiser certifies a
correction to the appraisal roll 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.

SUMMARY OF COMMITTEE CHANGES

Amends As Filed S.B. 863, Section 42.43, Tax Code, as follows:

SECTION 1.  In Section 42.43, Tax Code, replaces "corrects the appraisal
roll" with "certifies a correction to the appraisal roll."  Replaces "the
appraisal roll is corrected" with "chief appraiser certifies a correction
to the appraisal roll." 

SECTION 2.  Makes conforming changes.  
 
SECTION 3.  No changes in text.