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