82R7533 TJB-D
 
  By: Gonzalez H.B. No. 1090
 
 
 
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 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, for the week in which the taxes became delinquent,
  but not more than 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 accrues on or after the
  effective date of this Act. The rate of interest on a tax refund
  that accrued before the effective date of this Act is determined by
  the law in effect when the interest accrued, and that law is
  continued in effect for that purpose.
         SECTION 3.   This Act takes effect September 1, 2011.