S.B. No. 850 amends the Texas Tax Code to simplify the process for obtaining ad valorem tax refunds. The bill allows individuals to apply for a tax refund only if the amount is at least $20, making smaller refunds optional. It also removes the requirement for interest to be paid on refunds under certain circumstances and establishes a timeline mandating that refunds be issued within 60 days of the chief appraiser's notification of a final determination on appeals. Additionally, the bill clarifies procedures for tax collectors regarding late applications for exemptions and the handling of overpayments, specifying that erroneous payments exceeding $20 must be refunded or applied to future taxes, contingent upon the auditor's agreement.

Moreover, the bill introduces new requirements for the payment of tax refunds and associated interest, mandating that refunds must be paid within 60 days after the liability arises, with interest accruing at an annual rate of 12 percent if not processed in time. It also addresses refunds in the context of property tax appeals, requiring that refunds be issued within 60 days if a property owner's tax liability is reduced, including interest for delays. The bill repeals certain existing provisions and specifies that the changes will apply only to ad valorem tax refunds arising 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 (Tax Code 31, Tax Code 11, Tax Code 42, Government Code 2003)
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 (Tax Code 31, Tax Code 11, Tax Code 42, Government Code 2003)
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 (Tax Code 31, Tax Code 11, Tax Code 42, Government Code 2003)
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 (Tax Code 31, Tax Code 11, Tax Code 42, Government Code 2003)
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 (Tax Code 31, Tax Code 11, Tax Code 42, Government Code 2003)