By: Seliger  S.B. No. 641
         (In the Senate - Filed February 14, 2011; February 23, 2011,
  read first time and referred to Committee on Intergovernmental
  Relations; April 18, 2011, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 5, Nays 0;
  April 18, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 641 By:  Nichols
 
 
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.  Subsection (b), Section 42.43, 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[, 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.
 
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