S.B. No. 850 amends the Texas Tax Code to streamline the ad valorem tax refund process by introducing several key changes. One significant provision allows individuals to apply for a tax refund only if the amount is at least $20, making smaller refunds optional. The bill also removes the requirement for interest to be paid on refunds under certain circumstances and mandates that refunds be issued within 60 days of a determination. Additionally, it clarifies that taxpayers are not required to apply for refunds exceeding $20 and introduces provisions for interest on refunds if they are not processed in a timely manner.

The bill further modifies existing sections to ensure tax collectors notify taxpayers of overpayments and outlines the process for refunds. It allows refunds to be applied to delinquent taxes under specific conditions and sets guidelines for handling refunds related to late applications for tax exemptions. Notably, the bill amends Section 31.12 of the Tax Code to establish a 60-day timeline for refund payments and specifies that refunds not paid within this timeframe will accrue interest at an annual rate of 12 percent. The changes will only apply to ad valorem tax refunds for which the liability arises on or after the effective date of the Act, set for September 1, 2025.

Statutes affected:
Introduced: Tax Code 11.35, Tax Code 11.431, Tax Code 11.438, Tax Code 11.439, Tax Code 31.071, Tax Code 31.072, Tax Code 31.11, Tax Code 31.112, Tax Code 31.12, Tax Code 42.43, Government Code 2003.913 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)
Senate Committee Report: Tax Code 11.35, Tax Code 11.431, Tax Code 11.438, Tax Code 11.439, Tax Code 31.071, Tax Code 31.072, Tax Code 31.11, Tax Code 31.112, Tax Code 31.12, Tax Code 42.43, Government Code 2003.913 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)
Engrossed: Tax Code 11.35, Tax Code 11.431, Tax Code 11.438, Tax Code 11.439, Tax Code 31.071, Tax Code 31.072, Tax Code 31.11, Tax Code 31.112, Tax Code 31.12, Tax Code 42.43, Government Code 2003.913 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)
House Committee Report: Tax Code 11.35, Tax Code 11.431, Tax Code 11.438, Tax Code 11.439, Tax Code 31.071, Tax Code 31.072, Tax Code 31.11, Tax Code 31.112, Tax Code 31.12, Tax Code 42.43, Government Code 2003.913 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)
Enrolled: Tax Code 11.35, Tax Code 11.431, Tax Code 11.438, Tax Code 11.439, Tax Code 31.071, Tax Code 31.072, Tax Code 31.11, Tax Code 31.112, Tax Code 31.12, Tax Code 42.43, Government Code 2003.913 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)