Bill > SB850

This bill modifies various provisions of the Texas Tax Code related to tax refunds, with several key changes. It establishes that taxpayers are not required to apply for refunds of $20 or more, but must apply for refunds under $20. The bill standardizes and shortens refund timelines, requiring most tax refunds to be processed within 60 days of the liability arising, and imposes a 12% annual interest rate on late refunds. The legislation covers multiple scenarios for tax refunds, including situations involving property tax exemptions, property value disputes, and overpayments. For instance, if a property owner successfully challenges a tax assessment or qualifies for a previously unclaimed exemption, the taxing unit must now refund the excess taxes more quickly and potentially pay interest if the refund is delayed. The bill also simplifies the refund application process, removes some previous approval requirements for smaller refunds, and ensures more consistent treatment of tax refund procedures across different types of tax disputes. These changes aim to make the tax refund process more streamlined, transparent, and taxpayer-friendly. The bill will take effect on September 1, 2025, and will apply to tax refunds arising on or after that date.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB850