S.B. No. 850 proposes significant amendments to the Texas Tax Code concerning the payment of ad valorem tax refunds. A new section, 1.072, is introduced, allowing individuals to apply for tax refunds of at least $1, although they are not mandated to do so. The bill removes the requirement for interest on refunds under certain subsections and establishes a timeline for refund payments, ensuring they are issued within 60 days of specific notifications. It also clarifies that taxpayers are not obligated to apply for refunds in various situations, thereby streamlining the refund process.

Furthermore, the bill outlines procedures for handling overpayments, stating that taxpayers who submit excessive payments of $1 or more will receive refunds after verification by the collector and auditor. It allows taxing units to apply overpayments to delinquent taxes if the taxpayer has outstanding liabilities on other properties. The bill emphasizes timely refunds, including interest on late payments, and details the process for taxpayers to file suit if their refund applications are denied. These changes will take effect on September 1, 2025, and will only apply to tax refund liabilities arising after that date.

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 11, Tax Code 31, 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 11, Tax Code 31, 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 11, Tax Code 31, Tax Code 42, Government Code 2003)