BILL ANALYSIS

Senate Research Center	H.B. 2989
85R4880 SMT-F	By: Bonnen, Dennis (Taylor, Larry)
	Finance
	5/9/2017
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Interested parties contend that in cases where a correction in a tax roll results in a property tax refund, the law is not clear on who should receive the refund after property ownership has transferred.

H.B. 2989 provides the needed clarity by specifying that the person to whom the refund in such a situation must be provided is the person who paid the tax.

H.B. 2989 amends current law relating to payment of an ad valorem tax refund in the event of a tax roll correction that decreases a property owner's tax liability.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 26.15(f), Tax Code, to require the taxing unit, if a correction that decreases the tax liability of a property owner is made after the owner has paid the tax, to refund to the property owner who paid the tax the difference between the tax paid and the tax legally due, except as provided by Section 25.25(n) (relating to a certain limitation on the liability of a taxing unit for a refund of certain taxes, and any penalty or interest on those taxes, after a chief appraiser certifies a certain change).

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: upon passage or September 1, 2017.