S.B. No. 850 amends the Texas Tax Code to streamline the ad valorem tax refund process. A significant change is the introduction of a minimum refund threshold of $20, making smaller refunds optional. The bill also eliminates the requirement for interest payments on refunds under certain conditions and establishes a clear timeline for refund issuance, mandating that refunds be processed within 60 days following the chief appraiser's final determination on appeals. Additionally, it clarifies procedures for tax collectors regarding late exemption applications and overpayment handling, requiring them to inform taxpayers about overpayments and their refund eligibility.

The bill further specifies that refunds related to certain sections of the Tax Code must be paid within 60 days of the liability arising, with a 12 percent annual interest accruing if the refund is delayed. It also addresses property tax appeals, requiring taxing units to issue refunds within 60 days if a property owner's tax liability is reduced, including interest if the refund is late. Certain existing provisions are repealed, and the new requirements will apply only to ad valorem tax refunds for liabilities arising on or after the effective date of September 1, 2025.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 31, Tax Code 42, 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 31, Tax Code 42, 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 31, Tax Code 42, 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 31, Tax Code 42, 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 31, Tax Code 42, Tax Code 11)