| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the calculation of interest on certain ad valorem tax |
|
|
refunds. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 42.43(b), Tax Code, is amended to read as |
|
|
follows: |
|
|
(b) For a refund made under this section [because an
|
|
|
exemption under Section 11.20 that was denied by the chief
|
|
|
appraiser or appraisal review board is granted], the taxing unit |
|
|
shall include with the refund interest on the amount refunded |
|
|
calculated at an annual rate that is equal to the sum of two percent |
|
|
and the most recent prime rate quoted and [auction average rate
|
|
|
quoted on a bank discount basis for three-month treasury bills
|
|
|
issued by the United States government, as] published by the |
|
|
Federal Reserve Board as of the first day of the month in which the |
|
|
refund is made [, for the week in which the taxes became
|
|
|
delinquent], but not more than a total of eight [10] percent, |
|
|
calculated from the delinquency date for the taxes until the date |
|
|
the refund is made. [For any other refund made under this section,
|
|
|
the taxing unit shall include with the refund interest on the amount
|
|
|
refunded at an annual rate of eight percent, calculated from the
|
|
|
delinquency date for the taxes until the date the refund is made.] |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to the rate of interest on a tax refund that is made following an |
|
|
appeal that is finally determined on or after the effective date of |
|
|
this Act. The rate of interest on a tax refund that is made |
|
|
following an appeal that is finally determined before the effective |
|
|
date of this Act is determined by the law in effect when the appeal |
|
|
is finally determined, and that law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2011. |