SRC-VRA H.B. 3540 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3540
78R8575 RCJ-DBy: Chavez (Shapleigh)
Intergovernmental Relations
5/19/2003
Engrossed


DIGEST AND PURPOSE 

Under current law, any refund of an erroneous payment or an overpayment of
$500 or more must be approved by the municipal legislative body.  The $500
threshold is currently at a level that many of these type of refunds have
to be placed on the city council agenda for approval.  This can create
administrative burdens  and  delay in the process of refunding taxpayers. 

H.B. 3540 increases the tax overpayment threshold to $2,500 for
jurisdictions that participate in a consolidated tax collection effort.  

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(a), Tax Code, to prohibit a tax collector
from making a refund of an overpayment or erroneous payment of ad valorem
taxes by a tax collector who performs consolidated tax collection
functions unless the governing body of a taxing unit, in the case of a
collector who collects taxes for one taxing unit, also determines that the
payment was erroneous or excessive and approves the refund if the amount
of the refund exceeds $2,500. Deletes language relating to a governing
body of a taxing unit that collects another unit's taxes. 

SECTION 2.Effective date:  September 1, 2003.
  Makes application of this Act prospective.