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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a religious organization to obtain a |
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refund of ad valorem taxes imposed on property leased to the |
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organization for use as an actual place of religious worship. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 31, Tax Code, is amended by adding |
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Section 31.112 to read as follows: |
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Sec. 31.112. REFUNDS TO RELIGIOUS ORGANIZATIONS OF TAXES ON |
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CERTAIN LEASED PROPERTY. (a) In this section: |
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(1) "Religious organization" means an organization |
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that qualifies as a religious organization under Section 11.20. |
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(2) "Religious worship" has the meaning assigned by |
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Section 11.20. |
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(b) A religious organization is entitled to receive from the |
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collector for a taxing unit a refund of the taxes paid by the owner |
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of the property on property that is leased to the organization and |
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used primarily as a place of regular religious worship. The |
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collector shall pay the refund from available current tax |
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collections or from funds appropriated by the taxing unit for |
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making refunds. |
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(c) To receive a refund under this section, a religious |
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organization claiming the refund must apply for the refund. The |
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organization must apply for the refund not later than the third |
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anniversary of the date the taxes on the property were paid or the |
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organization waives the right to the refund. |
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(d) An application for a refund under this section must be |
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made using a form prescribed by the comptroller by rule. The |
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application form must include information sufficient to enable the |
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collector for the taxing unit to determine: |
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(1) whether the religious organization is entitled to |
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the refund; and |
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(2) the amount of the refund to which the organization |
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is entitled, if any. |
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(e) If the collector for a taxing unit does not respond to an |
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application for a refund under this section on or before the 90th |
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day after the date the application is filed with the collector, the |
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application is presumed to have been denied. |
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(f) Not later than the 60th day after the date the collector |
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for a taxing unit denies an application for a refund under this |
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section, the religious organization may file suit against the |
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taxing unit in district court to compel the payment of the |
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refund. If the collector collects taxes for more than one taxing |
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unit, the organization shall join in the suit each taxing unit on |
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behalf of which the collector denied the refund. If the |
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organization prevails in the suit, the organization may be awarded: |
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(1) costs of court; and |
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(2) reasonable attorney's fees in an amount not to |
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exceed the greater of: |
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(A) $1,500; or |
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(B) 30 percent of the total amount of the refund |
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determined by the court to be due. |
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SECTION 2. Sections 31.12(a) and (b), Tax Code, are amended |
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to read as follows: |
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(a) If a refund of a tax provided by Section 11.431(b), |
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26.07(g), 26.15(f), 31.11, [or] 31.111, or 31.112 is paid on or |
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before the 60th day after the date the liability for the refund |
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arises, no interest is due on the amount refunded. If not paid on or |
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before that 60th day, the amount of the tax to be refunded accrues |
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interest at a rate of one percent for each month or part of a month |
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that the refund is unpaid, beginning with the date on which the |
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liability for the refund arises. |
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(b) For purposes of this section, liability for a refund |
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arises: |
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(1) if the refund is required by Section 11.431(b), on |
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the date the chief appraiser notifies the collector for the unit of |
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the approval of the late homestead exemption; |
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(2) if the refund is required by Section 26.07(g), on |
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the date the results of the election to reduce the tax rate are |
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certified; |
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(3) if the refund is required by Section 26.15(f): |
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(A) for a correction to the tax roll made under |
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Section 26.15(b), on the date the change in the tax roll is |
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certified to the assessor for the taxing unit under Section 25.25; |
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or |
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(B) for a correction to the tax roll made under |
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Section 26.15(c), on the date the change in the tax roll is ordered |
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by the governing body of the taxing unit; |
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(4) if the refund is required by Section 31.11, on the |
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date the auditor for the taxing unit determines that the payment was |
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erroneous or excessive or, if the amount of the refund exceeds the |
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applicable amount specified by Section 31.11(a), on the date the |
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governing body of the unit approves the refund; [or] |
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(5) if the refund is required by Section 31.111, on the |
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date the collector for the taxing unit determines that the payment |
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was erroneous; or |
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(6) if the refund is required by Section 31.112, on the |
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date the collector for the taxing unit determines the religious |
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organization is entitled to the refund. |
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SECTION 3. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, authorizing the legislature to provide for |
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the refund of ad valorem taxes imposed on property leased to a |
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religious organization for use as an actual place of religious |
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worship is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |