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A BILL TO BE ENTITLED
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AN ACT
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relating to the interest rate on a refund of ad valorem taxes made |
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following the final determination of an appeal that decreases a |
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property owner's tax liability. |
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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 that is |
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equal to the auction average rate quoted on a bank discount basis |
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for three-month treasury bills issued by the United States |
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government, as published by the Federal Reserve Board, for the week |
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in which the taxes became delinquent, but not more than [of] eight |
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percent, calculated from the delinquency date for the taxes until |
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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 a refund made under Section 42.43, Tax Code, on or after the |
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effective date of this Act. A refund made under that section before |
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the effective date of this Act is governed by the law in effect on |
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the date the refund was made, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |