Bill Text: TX SB2242 | 2017-2018 | 85th Legislature | Enrolled


Bill Title: Relating to the resolution of disputes or errors involving the ad valorem taxation of the same property by multiple taxing units of the same type as a result of disputed, overlapping, or erroneously applied boundaries.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2017-06-12 - Effective immediately [SB2242 Detail]

Download: Texas-2017-SB2242-Enrolled.html
 
 
  S.B. No. 2242
 
 
 
 
AN ACT
  relating to the resolution of disputes or errors involving the ad
  valorem taxation of the same property by multiple taxing units of
  the same type as a result of disputed, overlapping, or erroneously
  applied boundaries.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 72, Local Government Code, is amended by
  adding Section 72.010 to read as follows:
         Sec. 72.010.  SUIT TO ESTABLISH BOUNDARIES OF AND TAXES OWED
  TO CERTAIN COUNTIES OR TAXING UNITS LOCATED IN THOSE COUNTIES.
  (a)  In this section:
               (1)  "Like taxing units" means counties or other taxing
  units that are of the same type as one another and that by law may
  not include the same geographic territory.
               (2)  "Taxing unit" has the meaning assigned by Section
  1.04, Tax Code.
         (b)  This section applies only to:
               (1)  a county that has a population of less than 400,000
  and contains a municipality with a population of at least 300,000;
               (2)  a county that has a population of at least 50,000
  and is adjacent to a county described by Subdivision (1); and
               (3)  a taxing unit other than a county that has
  territory in a county described by Subdivision (1) or (2).
         (c)  If, as a result of disputed, overlapping, or erroneously
  applied geographic boundaries between like taxing units, multiple
  like taxing units have imposed ad valorem taxes on the same
  property, the property owner may file suit in the supreme court to:
               (1)  establish the correct geographic boundary between
  the taxing units; and
               (2)  determine the amount of taxes owed on the property
  and the taxing unit or units to which the taxes are owed.
         (d)  The supreme court has original jurisdiction to hear and
  determine a suit filed under Subsection (c) and may issue
  injunctive or declaratory relief in connection with the suit.
         (e)  The supreme court shall enter a final order determining
  a suit filed under Subsection (c) not later than the 90th day after
  the date the suit is filed.
         SECTION 2.  Section 25.25, Tax Code, is amended by adding
  Subsection (p) to read as follows:
         (p)  Not later than the 45th day after the date a dispute or
  error described by Section 72.010(c), Local Government Code, is
  resolved by an agreement between the taxing units under Section
  31.112(c) of this code or by a final order of the supreme court
  entered under Section 72.010, Local Government Code, the chief
  appraiser of each applicable appraisal district shall correct the
  appraisal roll and other appropriate records as necessary to
  reflect the agreement or order.
         SECTION 3.  Chapter 31, Tax Code, is amended by adding
  Section 31.112 to read as follows:
         Sec. 31.112.  REFUNDS OF PAYMENTS MADE TO MULTIPLE LIKE
  TAXING UNITS. (a)  In this section, "like taxing units" has the
  meaning assigned by Section 72.010(a), Local Government Code.
         (b)  This section applies only to taxing units described by
  Section 72.010(b), Local Government Code.
         (c)  Like taxing units to which a property owner has made tax
  payments under protest as a result of a dispute or error described
  by Section 72.010(c), Local Government Code, may enter into an
  agreement to resolve the dispute or error. An agreement under this
  subsection:
               (1)  must establish the correct geographic boundary
  between the taxing units;
               (2)  may include an allocation between the taxing units
  of all or part of the taxes that were paid under protest before the
  dispute or error was resolved, less any amount that is required to
  be refunded to the property owner;
               (3)  must require the taxing units to refund to the
  property owner any amount by which the amount paid by the owner to
  the taxing units exceeds the amount due; and
               (4)  must be in writing.
         (d)  If a dispute or error described by Section 72.010(c),
  Local Government Code, is resolved by the agreement of the taxing
  units, a refund required by Subsection (c)(3) of this section must
  be made not later than the 90th day after the date on which the
  agreement is made.
         (e)  If a dispute or error described by Section 72.010(c),
  Local Government Code, is not resolved by the agreement of the
  taxing units and the supreme court enters a final order in a suit
  under Section 72.010, Local Government Code, determining the amount
  of taxes owed on the property and the taxing unit or units to which
  the taxes are owed, a refund required as a result of the order must
  be made not later than the 180th day after the date the order is
  entered.
         (f)  A refund under this section shall be accompanied by:
               (1)  a description sufficient to identify the property
  on which the taxes were imposed; and
               (2)  the tax account number, if applicable.
         (g)  A collector making a refund under this section shall
  notify the auditor of each appropriate taxing unit not later than
  the 30th day after the date the refund is made.
         SECTION 4.  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, [or] 31.111, or 31.112 is paid on or
  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; [or]
               (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 required by Section 31.112(d) or (e), as applicable.
         SECTION 5.  Subchapter E, Chapter 42, Education Code, is
  amended by adding Section 42.2532 to read as follows:
         Sec. 42.2532.  ADJUSTMENT FOR RESOLUTION OF DISPUTE OR ERROR
  RESULTING IN TAXATION OF SAME PROPERTY BY MULTIPLE SCHOOL
  DISTRICTS. The commissioner shall adjust the amounts due to a
  school district under this chapter and Chapter 46 as necessary to
  account for the resolution of a dispute or error involving the
  district and another district by an agreement between the districts
  entered into under Section 31.112(c), Tax Code, or by a final order
  of the supreme court entered under Section 72.010, Local Government
  Code.
         SECTION 6.  The changes in law made by this Act apply to ad
  valorem taxes imposed for a tax year beginning before, on, or after
  the effective date of this Act.
         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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2242 passed the Senate on
  April 20, 2017, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 26, 2017, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2242 passed the House, with
  amendment, on May 19, 2017, by the following vote: Yeas 143,
  Nays 1, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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