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A BILL TO BE ENTITLED
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AN ACT
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relating to the elimination of double taxation of property due to |
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jurisdictional disputes of like taxing units. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 21, Tax Code, is amended by adding |
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Section 21.056 to read as follows: |
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Sec. 21.056. DOUBLE TAXATION PROHIBITED. (a) This section |
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applies only to Nueces and San Patricio Counties. |
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(b) In this section, "like taxing units" means taxing units |
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of the same type, including counties, that by law may not include |
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the same geographic territory. |
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(c) If as a result of disputed, overlapping, or erroneously |
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applied geographic boundaries of like taxing units taxes are |
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imposed on a property by multiple like taxing units, the amount of |
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tax due on the property for the tax year is equal to the average of |
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the amounts of tax imposed on the property by each of the like |
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taxing units. Taxes due under this subsection shall be paid to and |
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deposited in an escrow account in the registry of the district court |
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of Refugio County. |
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(d) On resolution of a dispute or error described by |
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Subsection (c), as evidenced by a written agreement between the |
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like taxing units or by final adjudication, the district court of |
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Refugio County shall apply the amount in the escrow account to the |
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taxes due to each like taxing unit in accordance with the agreement |
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or adjudication, as applicable. The court shall remit to the |
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taxpayer any amount in the escrow account that exceeds the amount of |
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taxes due to the like taxing units. |
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(e) If the amount in the escrow account is not sufficient to |
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pay the taxes in full under Subsection (d), the assessor for a like |
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taxing unit to which taxes are due shall prepare and mail a |
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supplemental tax bill in the manner provided by Chapter 31 for tax |
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bills generally. |
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(f) If an escrow account under this section applies to more |
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than one item of property or if taxes are due to more than one like |
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taxing unit, the court shall apply the amount to each item of |
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property or like taxing unit in proportion to the amount of taxes |
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due on the item or to the like taxing unit. |
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SECTION 2. 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 OF DOUBLE TAXATION. (a) In this |
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section, "like taxing units" has the meaning assigned by Section |
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21.056. |
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(b) If as a result of a dispute or error described by Section |
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21.056(c) a property owner has made a tax payment under protest to |
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multiple like taxing units and the dispute or error is subsequently |
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resolved by written agreement between the like taxing units or by |
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final adjudication, the like taxing units: |
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(1) may agree on an allocation of all or a portion of |
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the taxes that were paid under protest during the pendency of the |
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dispute or error, less any amount refundable to the property owner |
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under Subdivision (2); and |
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(2) shall refund to the property owner the amount by |
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which the sum paid to the like taxing units exceeds the amount due, |
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if any. |
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(c) A refund under this section shall be made as soon as |
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practicable after the resolution of the dispute or error described |
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by Subsection (b). The refund shall be accompanied by a description |
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of the property subject to the taxes sufficient to identify the |
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property. If the property is assigned an account number, the |
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collector shall include that number. |
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(d) A collector shall notify the auditor of each appropriate |
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like taxing unit not later than 30 days after a refund is made under |
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this section. |
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SECTION 3. 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 dispute or error described by Section 21.056(c) is |
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resolved by written agreement or final adjudication. |
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SECTION 4. Section 42.41(a), Tax Code, is amended to read as |
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follows: |
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(a) Not later than the 45th day after the date an appeal is |
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finally determined or a dispute or error under Section 21.056 is |
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resolved, the chief appraiser shall: |
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(1) correct the appraisal roll and other appropriate |
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records as necessary to reflect the final determination of the |
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appeal; and |
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(2) certify the change to the assessor for each |
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affected taxing unit. |
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SECTION 5. Subchapter E, Chapter 42, Education Code, is |
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amended by adding Section 42.2532 to read as follows: |
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Sec. 42.2532. ADJUSTMENT FOR CORRECTION OF DOUBLE TAXATION. |
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The commissioner shall adjust the amounts due to a school district |
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under this chapter and Chapter 46 as necessary to account for a |
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resolution under Section 21.056, Tax Code. |
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SECTION 6. Section 21.056, Tax Code, as added by this Act, |
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applies only to ad valorem taxes imposed for a tax year beginning on |
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or after January 1, 2018. |
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SECTION 7. 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. |