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A BILL TO BE ENTITLED
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AN ACT
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relating to the resolution of disputes or errors involving the ad |
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valorem taxation of the same property by multiple taxing units of |
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the same type as a result of disputed, overlapping, or erroneously |
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applied boundaries. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 72, Local Government Code, is amended by |
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adding Section 72.010 to read as follows: |
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Sec. 72.010. SUIT TO ESTABLISH BOUNDARIES OF AND TAXES OWED |
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TO CERTAIN COUNTIES OR TAXING UNITS LOCATED IN THOSE COUNTIES. |
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(a) In this section: |
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(1) "Like taxing units" means counties or other taxing |
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units that are of the same type as one another and that by law may |
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not include the same geographic territory. |
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(2) "Taxing unit" has the meaning assigned by Section |
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1.04, Tax Code. |
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(b) This section applies only to: |
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(1) a county that has a population of less than 400,000 |
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and contains a municipality with a population of at least 300,000; |
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(2) a county that has a population of at least 50,000 |
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and is adjacent to a county described by Subdivision (1); and |
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(3) a taxing unit other than a county that has |
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territory in a county described by Subdivision (1) or (2). |
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(c) If, as a result of disputed, overlapping, or erroneously |
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applied geographic boundaries between like taxing units, multiple |
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like taxing units have imposed ad valorem taxes on the same |
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property, the property owner may file suit in the supreme court to: |
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(1) establish the correct geographic boundary between |
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the taxing units; and |
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(2) determine the amount of taxes owed on the property |
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and the taxing unit or units to which the taxes are owed. |
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(d) The supreme court has original jurisdiction to hear and |
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determine a suit filed under Subsection (c) and may issue |
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injunctive or declaratory relief in connection with the suit. |
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(e) The supreme court shall enter a final order determining |
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a suit filed under Subsection (c) not later than the 90th day after |
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the date the suit is filed. |
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SECTION 2. Section 25.25, Tax Code, is amended by adding |
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Subsection (p) to read as follows: |
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(p) Not later than the 45th day after the date a dispute or |
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error described by Section 72.010(c), Local Government Code, is |
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resolved by an agreement between the taxing units under Section |
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31.112(c) of this code or by a final order of the supreme court |
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entered under Section 72.010, Local Government Code, the chief |
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appraiser of each applicable appraisal district shall correct the |
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appraisal roll and other appropriate records as necessary to |
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reflect the agreement or order. |
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SECTION 3. 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 PAYMENTS MADE TO MULTIPLE LIKE |
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TAXING UNITS. (a) In this section, "like taxing units" has the |
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meaning assigned by Section 72.010(a), Local Government Code. |
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(b) This section applies only to taxing units described by |
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Section 72.010(b), Local Government Code. |
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(c) Like taxing units to which a property owner has made tax |
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payments under protest as a result of a dispute or error described |
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by Section 72.010(c), Local Government Code, may enter into an |
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agreement to resolve the dispute or error. An agreement under this |
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subsection: |
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(1) must establish the correct geographic boundary |
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between the taxing units; |
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(2) may include an allocation between the taxing units |
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of all or part of the taxes that were paid under protest before the |
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dispute or error was resolved, less any amount that is required to |
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be refunded to the property owner; |
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(3) must require the taxing units to refund to the |
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property owner any amount by which the amount paid by the owner to |
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the taxing units exceeds the amount due; and |
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(4) must be in writing. |
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(d) If a dispute or error described by Section 72.010(c), |
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Local Government Code, is resolved by the agreement of the taxing |
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units, a refund required by Subsection (c)(3) of this section must |
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be made not later than the 90th day after the date on which the |
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agreement is made. |
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(e) If a dispute or error described by Section 72.010(c), |
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Local Government Code, is not resolved by the agreement of the |
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taxing units and the supreme court enters a final order in a suit |
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under Section 72.010, Local Government Code, determining the amount |
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of taxes owed on the property and the taxing unit or units to which |
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the taxes are owed, a refund required as a result of the order must |
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be made not later than the 180th day after the date the order is |
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entered. |
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(f) A refund under this section shall be accompanied by: |
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(1) a description sufficient to identify the property |
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on which the taxes were imposed; and |
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(2) the tax account number, if applicable. |
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(g) A collector making a refund under this section shall |
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notify the auditor of each appropriate taxing unit not later than |
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the 30th day after the date the refund is made. |
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SECTION 4. 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 required by Section 31.112(d) or (e), as applicable. |
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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 RESOLUTION OF DISPUTE OR ERROR |
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RESULTING IN TAXATION OF SAME PROPERTY BY MULTIPLE SCHOOL |
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DISTRICTS. The commissioner shall adjust the amounts due to a |
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school district under this chapter and Chapter 46 as necessary to |
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account for the resolution of a dispute or error involving the |
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district and another district by an agreement between the districts |
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entered into under Section 31.112(c), Tax Code, or by a final order |
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of the supreme court entered under Section 72.010, Local Government |
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Code. |
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SECTION 6. The changes in law made by this Act apply to ad |
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valorem taxes imposed for a tax year beginning before, on, or after |
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the effective date of this Act. |
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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. |