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A BILL TO BE ENTITLED
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AN ACT
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relating to the interest rate on a refund of ad valorem taxes made |
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following the final determination of an appeal that decreases a |
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property owner's tax liability. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.43, Tax Code, is amended by amending |
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Subsections (b), (b-1), and (c) and adding Subsection (b-2) to read |
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as follows: |
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(b) Except as provided by Subsection (b-1), for [For] a |
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refund made under this section, the taxing unit shall include with |
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the refund interest on the amount refunded calculated at an annual |
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rate of 9.5 percent, calculated from the delinquency date for the |
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taxes until the date the refund is made. |
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(b-1) For a refund made under this section resulting from |
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the final determination of an appeal that decreases a property |
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owner's liability for taxes imposed on a refinery, the taxing unit |
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shall include with the refund interest on the amount refunded |
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calculated at an annual rate that is equal to the auction average |
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rate quoted on a bank discount basis for one-month treasury bills |
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issued by the United States government, as published by the Federal |
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Reserve Board, for the week in which the taxes became delinquent, |
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but not more than 4 percent, calculated from the delinquency date |
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for the taxes until the date the refund is made. In this |
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subsection, "refinery" means an installation that refines, treats, |
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prepares, or processes raw or unrefined petroleum. |
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(b-2) A taxing unit may not send a refund made under this |
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section before the earlier of: |
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(1) the 21st day after the final determination of the |
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appeal; or |
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(2) the date the property owner files the form |
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prescribed by Subsection (i) with the taxing unit. |
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(c) Notwithstanding Subsections [Subsection] (b) and (b-1) |
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, |
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if a taxing unit does not make a refund, including interest, |
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required by this section before the 60th day after the date the |
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chief appraiser certifies a correction to the appraisal roll under |
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Section 42.41, the taxing unit shall include with the refund |
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interest on the amount refunded at an annual rate of 12 percent, |
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calculated from the delinquency date for the taxes until the date |
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the refund is made. A refund is not considered made under this |
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section until sent to the proper person 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 interest that accrues on or after the effective date of this Act. |
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Interest that accrued before the effective date of this Act is |
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governed by the law in effect when the interest accrued, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |