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