LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 4, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB863  by Staples (Relating to tax refunds to property
               owners following ad valorem tax appeals.), Committee
               Report 1st House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would amend Section 42.43 of the Tax Code to require a taxing
unit to pay interest at an annual rate of 12 percent on refunds that had
not been paid before the 60th day after the chief appraiser certified the
appraisal roll to reflect a final determination by the district court.

A property owner who prevailed in a suit to compel a refund, filed on or
after the 180th day after the date the appraisal roll was certified,
would be entitled to court costs and reasonable attorney's fees.

The bill would have no impact on the school district taxable values
reported to the Commissioner of Education by the Comptroller.
  
Local Government Impact
  
Some taxing units would pay more interest (and in some cases more
attorney's fees and court costs) on late property tax refunds.  The
amount of costs to local governments would depend on the incidents of
late refunds, the length of time before payment, and the refund amount.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, SD, BR