2017S0293-1 02/22/17     By: Hinojosa S.B. No. 2242     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 taxes imposed by 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 property   owner may file suit with the supreme court challenging the   imposition.          (d)  The supreme court has original jurisdiction to hear and   decide a suit filed under Subsection (c) and may issue injunctive or   declaratory relief in connection with the suit.          (e)  The supreme court shall rule on a suit filed under   Subsection (c) not later than the 90th day after the date the suit   is filed.          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, 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 any amount by   which the sum paid to the like taxing units exceeds the amount due.          (c)  A refund under this section shall be made as soon as   practicable after the resolution of the dispute or error under   Subsection (b). The refund shall be accompanied by a description   sufficient to identify the property subject to the taxes. 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.          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 described by Section   21.056(c) 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.  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.