2017S0079-2 01/31/17
 
  By: Hinojosa S.B. No. 2241
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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, [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 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.