S.B. No. 798

	AN ACT
	relating to refunds of overpayments or erroneous payments of ad
	valorem taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 31.11, Tax Code, is amended by amending
	Subsections (a) and (c) and adding Subsection (i) to read as
	follows:
	(a)  If a taxpayer applies to the tax collector of a taxing
	unit for a refund of an overpayment or erroneous payment of taxes,
	[and] the collector [auditor] for the unit determines that the
	payment was erroneous or excessive, and the auditor for the unit
	agrees with the collector's determination, the [tax] collector
	shall refund the amount of the excessive or erroneous payment from
	available current tax collections or from funds appropriated by the
	unit for making refunds. However, the collector may not make the
	refund unless:
	(1)  in the case of a collector who collects taxes for
	one taxing unit, the governing body of the taxing unit also
	determines that the payment was erroneous or excessive and approves
	the refund if the amount of the refund exceeds:
	(A)  $2,500 for a refund to be paid by a county
	with a population of 1.5 million or more; or
	(B)  $500 for a refund to be paid by any other
	taxing unit; or
	(2)  in the case of a collector who collects taxes for
	more than one taxing unit, the governing body of the taxing unit
	that employs the collector also determines that the payment was
	erroneous or excessive and approves the refund if the amount of the
	refund exceeds $2,500.
	(c)  Except as provided by Subsection (c-1), an application
	for a refund must be made within three years after the date of the
	payment or the taxpayer waives the right to the refund.  A taxpayer
	may apply for a refund by filing:
	(1)  an application on a form prescribed by the
	comptroller by rule; or
	(2)  a written request that includes information
	sufficient to enable the collector and the auditor for the taxing
	unit and, if applicable, the governing body of the taxing unit to
	determine whether the taxpayer is entitled to the refund.
	(i)  Notwithstanding the other provisions of this section,
	in the case of an overpayment or erroneous payment of taxes
	submitted by a taxpayer to a collector who collects taxes for one or
	more taxing units one of which is a county with a population of two
	million or more:
	(1)  a taxpayer is not required to apply to the
	collector for the refund to be entitled to receive the refund if the
	amount of the refund is at least $5 but does not exceed $5,000; and
	(2)  the collector is not required to comply with
	Subsection (g) unless the amount of the payment exceeds by more than
	$5,000 the amount of taxes owed for a tax year to a taxing unit for
	which the collector collects taxes.
	SECTION 2.  Subsection (c), Section 11.438, Tax Code, is
	amended to read as follows:
	(c)  If a late application is approved after approval of the
	appraisal records for a year for which the exemption is granted, the
	chief appraiser shall notify the collector for each taxing unit in
	which the property was taxable in that year. The collector shall
	deduct from the organization's tax bill the amount of tax imposed on
	the property for that year and any penalties and interest relating
	to that tax if the tax and related penalties and interest have not
	been paid. If the tax and related penalties and interest on the
	property for a tax year for which an exemption is granted under this
	section were paid under protest, the organization is eligible [may
	apply] for a refund of the tax, penalties, and interest paid as
	provided by Section 31.11. The deadline prescribed by Section
	31.11(c) for applying for a refund does not apply to a refund under
	this section.
	SECTION 3.  This Act applies only to ad valorem taxes imposed
	for a tax year that begins on or after the effective date of this
	Act.
	SECTION 4.  This Act takes effect January 1, 2010.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 798 passed the Senate on
	May 12, 2009, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 798 passed the House on
	May 26, 2009, by the following vote:  Yeas 146, Nays 0, one present
	not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor