81R6546 SMH-D
 
  By: Carona S.B. No. 798
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to refunds of overpayments or erroneous payments of ad
  valorem taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 31.11, Tax Code, is amended by amending
  Subsections (a) and (c) and adding Subsection (i) to read as
  follows:
         (a)  If a taxpayer applies to the tax collector of a taxing
  unit for a refund of an overpayment or erroneous payment of taxes,
  [and] the collector [auditor] for the unit determines that the
  payment was erroneous or excessive, and the auditor for the unit
  agrees with the collector's determination, the [tax] collector
  shall refund the amount of the excessive or erroneous payment from
  available current tax collections or from funds appropriated by the
  unit for making refunds. However, the collector may not make the
  refund unless:
               (1)  in the case of a collector who collects taxes for
  one taxing unit, the governing body of the taxing unit also
  determines that the payment was erroneous or excessive and approves
  the refund if the amount of the refund exceeds:
                     (A)  $2,500 for a refund to be paid by a county
  with a population of 1.5 million or more; or
                     (B)  $500 for a refund to be paid by any other
  taxing unit; or
               (2)  in the case of a collector who collects taxes for
  more than one taxing unit, the governing body of the taxing unit
  that employs the collector also determines that the payment was
  erroneous or excessive and approves the refund if the amount of the
  refund exceeds $2,500.
         (c)  Except as provided by Subsection (c-1), an application
  for a refund must be made within three years after the date of the
  payment or the taxpayer waives the right to the refund.  A taxpayer
  may apply for a refund by filing:
               (1)  an application on a form prescribed by the
  comptroller by rule; or
               (2)  a written request that includes information
  sufficient to enable the collector and the auditor for the taxing
  unit and, if applicable, the governing body of the taxing unit to
  determine whether the taxpayer is entitled to the refund.
         (i)  Notwithstanding the other provisions of this section,
  in the case of an overpayment or erroneous payment of taxes
  submitted by a taxpayer to a collector who collects taxes for one or
  more taxing units one of which is a county with a population of two
  million or more:
               (1)  a taxpayer is not required to apply to the
  collector for the refund to be entitled to receive the refund if the
  amount of the refund is at least $5 but does not exceed $5,000; and
               (2)  the collector is not required to comply with
  Subsection (g) unless the amount of the payment exceeds by more than
  $5,000 the amount of taxes owed for a tax year to a taxing unit for
  which the collector collects taxes.
         SECTION 2.  Section 11.438(c), Tax Code, is amended to read
  as follows:
         (c)  If a late application is approved after approval of the
  appraisal records for a year for which the exemption is granted, the
  chief appraiser shall notify the collector for each taxing unit in
  which the property was taxable in that year. The collector shall
  deduct from the organization's tax bill the amount of tax imposed on
  the property for that year and any penalties and interest relating
  to that tax if the tax and related penalties and interest have not
  been paid. If the tax and related penalties and interest on the
  property for a tax year for which an exemption is granted under this
  section were paid under protest, the organization is eligible [may
  apply] for a refund of the tax, penalties, and interest paid as
  provided by Section 31.11. The deadline prescribed by Section
  31.11(c) for applying for a refund does not apply to a refund under
  this section.
         SECTION 3.  This Act applies only to ad valorem taxes imposed
  for a tax year that begins on or after the effective date of this
  Act.
         SECTION 4.  This Act takes effect January 1, 2010.