H.B. 3540 78(R) BILL ANALYSIS H.B. 3540 By: Chavez Local Government Ways and Means Committee Report (Unamended) BACKGROUND AND PURPOSE Under current law, any refund of an erroneous payments or an overpayments of $500 or more must be approved by the municipal legislative body. The $500 threshold is currently so low 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 would increase the tax overpayment threshold to $2,500 for jurisdictions that participate in a consolidated tax collection effort. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3540 amends the Property Tax Code in order to increase the threshold amount for refunding tax overpayments without approval from the municipal legislative body. EFFECTIVE DATE September 1, 2003