By: Darby (Senate Sponsor - Hinojosa) H.B. No. 2253

(In the Senate - Received from the House April 19, 2017; April 26, 2017, read first time and referred to Committee on Finance; May 12, 2017, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 1; May 12, 2017, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 2253 By: Hinojosa

A BILL TO BE ENTITLED

AN ACT

relating to the interest rate on a refund of ad valorem taxes made following the final determination of an appeal that decreases a property owner's tax liability.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 42.43(b), Tax Code, is amended to read as follows:

(b) For a refund made under this section, 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 published by the Federal Reserve Board as of the first day of the month in which the refund is made, but not more than a total of eight [of 9.5] 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 a tax refund that is made following an appeal that is filed on or after the effective date of this Act. A tax refund that is made following an appeal that is filed before the effective date of this Act is determined by the law in effect when the appeal is filed, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.

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