The bill amends the Texas Tax Code to enhance the process for taxpayers seeking refunds for overpaid ad valorem taxes. It introduces a new section, 1.072, which allows individuals to apply for a tax refund if the overpayment is at least $1, although applying is not mandatory. The bill removes the requirement for interest on certain refunds and establishes a clear timeline for tax collectors to issue refunds, mandating that they must be processed within 60 days after an appeal is resolved. If a refund is delayed, interest will accrue at a rate of 12 percent.

Additionally, the bill sets forth new guidelines for refund processing, specifying that refunds must be paid no later than the 45th day after the liability arises, with the same interest rate applicable for delays. It clarifies the conditions under which refunds are required and introduces a provision allowing property owners to waive interest on specific refunds. The bill also modifies the timeline for refunds following property tax assessment appeals, ensuring that refunds are issued within 60 days of a final determination, with interest accruing if this deadline is not met. Certain outdated sections of the Tax Code will be repealed, and these changes will take effect on September 1, 2025, applying only to refunds for which liability arises after this date.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 (Government Code 2003, Tax Code 42, Tax Code 31, Tax Code 11)