By: Hinojosa, Zaffirini S.B. No. 2242     A BILL TO BE ENTITLED   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)  Nueces and San Patricio Counties; and                (2)  other taxing units with territory in one or more of   those counties.          (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.