S.B. No. 850 amends the Texas Tax Code to streamline the ad valorem tax refund process by allowing individuals to apply for refunds only if the amount is at least $20, thus making it optional for smaller amounts. The bill 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. It also clarifies procedures for tax collectors regarding late applications for exemptions and overpayments, ensuring taxpayers are notified of overpayments and outlining conditions for applying refunds to delinquent taxes.

Additionally, the bill introduces new requirements for the payment of tax refunds, mandating that refunds related to specific sections of the Tax Code must be paid within 60 days after the liability arises, with interest accruing at an annual rate of 12 percent if not processed within this timeframe. It specifies that if a property owner's tax liability is reduced following an appeal, the taxing unit must issue a refund within 60 days, including interest if delayed. The bill repeals certain existing provisions and clarifies that the changes will apply only to ad valorem tax refunds for liabilities arising on or after the effective date of the Act, 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 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)
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 11, Tax Code 31, 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 11, Tax Code 31, Tax Code 42, Government Code 2003)