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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 an ad valorem tax refund |
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resulting from the final determination of an appeal that decreases |
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a property owner's liability. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 42.43(b) and (c), Tax Code, are amended |
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to read as follows: |
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(b) For a refund made under this section, the taxing unit |
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shall include with the refund interest on all or a portion of the |
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amount refunded, calculated at an annual rate of 9.5 percent, |
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calculated from the delinquency date for the taxes until the date |
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the refund is made. The court that makes the final determination of |
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the appeal shall, in its discretion, determine the amount on which |
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interest is to be calculated, provided that the amount is: |
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(1) not greater than the amount refunded under |
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Subsection (a); and |
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(2) not less than the difference between the minimum |
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amount the taxpayer was required to pay to preserve the right to |
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appeal under Section 42.08(b) and the amount of taxes for which the |
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property owner is liable. |
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(c) Notwithstanding Subsection (b), if a taxing unit does |
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not make a refund, including interest, required by this section |
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before the 60th day after the date the chief appraiser certifies a |
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correction to the appraisal roll under Section 42.41, the taxing |
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unit shall include with the refund interest on the amount |
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determined by the court under Subsection (b) [refunded] at an |
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annual rate of 12 percent, calculated from the delinquency date for |
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the taxes until the date the refund is made. A refund is not |
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considered made under this section until sent to the proper person |
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as provided by this section. |
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SECTION 2. The change in law made by this Act applies only |
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to a tax refund that is made following an appeal that is filed on or |
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after the effective date of this Act. A tax refund that is made |
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following an appeal that is filed before the effective date of this |
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Act is determined by the law in effect when the appeal is filed, and |
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that law is continued in 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, 2017. |