Bill Text: TX SB2241 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the elimination of double taxation of property due to jurisdictional disputes of like taxing units.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (N/A - Dead) 2017-04-04 - Referred to Finance [SB2241 Detail]
Download: Texas-2017-SB2241-Introduced.html
2017S0079-2 01/31/17 | ||
By: Hinojosa | S.B. No. 2241 |
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relating to the elimination of double taxation of property due to | ||
jurisdictional disputes of like taxing units. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 21, Tax Code, is amended by adding | ||
Section 21.056 to read as follows: | ||
Sec. 21.056. DOUBLE TAXATION PROHIBITED. (a) This section | ||
applies only to Nueces and San Patricio Counties. | ||
(b) In this section, "like taxing units" means taxing units | ||
of the same type, including counties, that by law may not include | ||
the same geographic territory. | ||
(c) If as a result of disputed, overlapping, or erroneously | ||
applied geographic boundaries of like taxing units taxes are | ||
imposed on a property by multiple like taxing units, the amount of | ||
tax due on the property for the tax year is equal to the average of | ||
the amounts of tax imposed on the property by each of the like | ||
taxing units. Taxes due under this subsection shall be paid to and | ||
deposited in an escrow account in the registry of the district court | ||
of Refugio County. | ||
(d) On resolution of a dispute or error described by | ||
Subsection (c), as evidenced by a written agreement between the | ||
like taxing units or by final adjudication, the district court of | ||
Refugio County shall apply the amount in the escrow account to the | ||
taxes due to each like taxing unit in accordance with the agreement | ||
or adjudication, as applicable. The court shall remit to the | ||
taxpayer any amount in the escrow account that exceeds the amount of | ||
taxes due to the like taxing units. | ||
(e) If the amount in the escrow account is not sufficient to | ||
pay the taxes in full under Subsection (d), the assessor for a like | ||
taxing unit to which taxes are due shall prepare and mail a | ||
supplemental tax bill in the manner provided by Chapter 31 for tax | ||
bills generally. | ||
(f) If an escrow account under this section applies to more | ||
than one item of property or if taxes are due to more than one like | ||
taxing unit, the court shall apply the amount to each item of | ||
property or like taxing unit in proportion to the amount of taxes | ||
due on the item or to the like taxing unit. | ||
SECTION 2. Chapter 31, Tax Code, is amended by adding | ||
Section 31.112 to read as follows: | ||
Sec. 31.112. REFUNDS OF DOUBLE TAXATION. (a) In this | ||
section, "like taxing units" has the meaning assigned by Section | ||
21.056. | ||
(b) If as a result of a dispute or error described by Section | ||
21.056(c) a property owner has made a tax payment under protest to | ||
multiple like taxing units and the dispute or error is subsequently | ||
resolved by written agreement between the like taxing units or by | ||
final adjudication, the like taxing units: | ||
(1) may agree on an allocation of all or a portion of | ||
the taxes that were paid under protest during the pendency of the | ||
dispute or error, less any amount refundable to the property owner | ||
under Subdivision (2); and | ||
(2) shall refund to the property owner the amount by | ||
which the sum paid to the like taxing units exceeds the amount due, | ||
if any. | ||
(c) A refund under this section shall be made as soon as | ||
practicable after the resolution of the dispute or error described | ||
by Subsection (b). The refund shall be accompanied by a description | ||
of the property subject to the taxes sufficient to identify the | ||
property. If the property is assigned an account number, the | ||
collector shall include that number. | ||
(d) A collector shall notify the auditor of each appropriate | ||
like taxing unit not later than 30 days after a refund is made under | ||
this section. | ||
SECTION 3. Sections 31.12(a) and (b), Tax Code, are amended | ||
to read as follows: | ||
(a) If a refund of a tax provided by Section 11.431(b), | ||
26.07(g), 26.15(f), 31.11, [ |
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before the 60th day after the date the liability for the refund | ||
arises, no interest is due on the amount refunded. If not paid on or | ||
before that 60th day, the amount of the tax to be refunded accrues | ||
interest at a rate of one percent for each month or part of a month | ||
that the refund is unpaid, beginning with the date on which the | ||
liability for the refund arises. | ||
(b) For purposes of this section, liability for a refund | ||
arises: | ||
(1) if the refund is required by Section 11.431(b), on | ||
the date the chief appraiser notifies the collector for the unit of | ||
the approval of the late homestead exemption; | ||
(2) if the refund is required by Section 26.07(g), on | ||
the date the results of the election to reduce the tax rate are | ||
certified; | ||
(3) if the refund is required by Section 26.15(f): | ||
(A) for a correction to the tax roll made under | ||
Section 26.15(b), on the date the change in the tax roll is | ||
certified to the assessor for the taxing unit under Section 25.25; | ||
or | ||
(B) for a correction to the tax roll made under | ||
Section 26.15(c), on the date the change in the tax roll is ordered | ||
by the governing body of the taxing unit; | ||
(4) if the refund is required by Section 31.11, on the | ||
date the auditor for the taxing unit determines that the payment was | ||
erroneous or excessive or, if the amount of the refund exceeds the | ||
applicable amount specified by Section 31.11(a), on the date the | ||
governing body of the unit approves the refund; [ |
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(5) if the refund is required by Section 31.111, on the | ||
date the collector for the taxing unit determines that the payment | ||
was erroneous; or | ||
(6) if the refund is required by Section 31.112, on the | ||
date the dispute or error described by Section 21.056(c) is | ||
resolved by written agreement or final adjudication. | ||
SECTION 4. Section 42.41(a), Tax Code, is amended to read as | ||
follows: | ||
(a) Not later than the 45th day after the date an appeal is | ||
finally determined or a dispute or error under Section 21.056 is | ||
resolved, the chief appraiser shall: | ||
(1) correct the appraisal roll and other appropriate | ||
records as necessary to reflect the final determination of the | ||
appeal; and | ||
(2) certify the change to the assessor for each | ||
affected taxing unit. | ||
SECTION 5. Subchapter E, Chapter 42, Education Code, is | ||
amended by adding Section 42.2532 to read as follows: | ||
Sec. 42.2532. ADJUSTMENT FOR CORRECTION OF DOUBLE TAXATION. | ||
The commissioner shall adjust the amounts due to a school district | ||
under this chapter and Chapter 46 as necessary to account for a | ||
resolution under Section 21.056, Tax Code. | ||
SECTION 6. Section 21.056, Tax Code, as added by this Act, | ||
applies only to ad valorem taxes imposed for a tax year beginning on | ||
or after January 1, 2018. | ||
SECTION 7. 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. |