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Title 1. Property Tax Code
Subtitle F. Remedies

Chapter 42. Judicial Review

Subchapter C. Postappeal Administrative Procedures

Sec. 42.41. Correction of Rolls.
Sec. 42.42. Corrected and Supplemental Tax Bills.
Sec. 42.43. Refund.

Sec. 42.41. Correction of Rolls.

(a) Not later than the 45th day after the date an appeal is finally determined, the chief appraiser shall:

(1) correct the appraisal roll and other appropriate records as necessary to reflect the final determination of the appeal; and

(2) certify the change to the assessor for each affected taxing unit.

(b) The assessor for each affected taxing unit shall correct the tax roll and other appropriate records for which the assessor is responsible.

(c) A chief appraiser is irrebutably presumed to have complied with Subsection (a)(2).

Amended by 1981 Tex. Laws (1st C.S.), p. 175, ch. 13, Sec. 155; amended by HB 893, 78th Tex. Leg., 2003, effective September 1, 2003.

Cross References:

Correcting appraisal roll, see Sec. 25.25(a).
Correcting tax roll, see Sec. 26.15(a).

Sec. 42.42. Corrected and Supplemental Tax Bills.

(a) Except as provided by Subsection (b) of this section, if the final determination of an appeal that changes a property owner's tax liability occurs after the tax bill is mailed, the assessor for each affected taxing unit shall prepare and mail a corrected tax bill in the manner provided by Chapter 31 of this code for tax bills generally. The assessor shall include with the bill a brief explanation of the reason for and effect of the corrected bill.

(b) If the final determination of an appeal that increases a property owner's tax liability occurs after the property owner has paid his taxes, the assessor for each affected taxing unit shall prepare and mail a supplemental tax bill in the manner provided by Chapter 31 for tax bills generally. The assessor shall include with the bill a brief explanation of the reason for and effect of the supplemental bill. The additional tax is due on receipt of the supplemental bill and becomes delinquent if not paid before the delinquency date prescribed by Chapter 31 or before the first day of the next month after the date of mailing that will provide at least 21 days for payment of the tax, whichever is later.

(c) If the final determination of an appeal occurs after the property owner has paid a portion of the tax finally determined to be due as required by Section 42.08, the assessor for each affected taxing unit shall prepare and mail a supplemental tax bill in the form and manner prescribed by Subsection (b). The additional tax is due and becomes delinquent as provided by Subsection (b), but the property owner is liable for penalties and interest on the tax included in the supplemental bill calculated as provided by Section 33.01 as if the tax included in the supplemental bill became delinquent on the original delinquency date prescribed by Chapter 31.

(d) If the property owner did not pay any portion of the taxes imposed on the property because the court found that payment would constitute an unreasonable restraint on the owner's right of access to the courts as provided by Section 42.08(d), after the final determination of the appeal the assessor for each affected taxing unit shall prepare and mail a supplemental tax bill in the form and manner prescribed by Subsection (b). The additional tax is due and becomes delinquent as provided by Subsection (b), but the property owner is liable for interest on the tax included in the supplemental bill calculated as provided by Section 33.01 as if the tax included in the supplemental bill became delinquent on the delinquency date prescribed by Chapter 31.

Amended by 1997 Tex. Laws, p. 1071, ch. 203, Sec. 3.

Cross References:

Preparation and mailing of tax bill, see Sec. 31.01.
Delinquency date, see Secs. 31.02 & 31.04.
Partial payment pending final determination, see Sec. 42.08.
Delinquency penalties and interest, see Sec. 33.01.

Note:

Partial tender of assessed taxes prior to the delinquency date was sufficient to preclude imposing penalty and interest on the unpaid balance and to avoid any effort to collect the balance due pending the resolution of the property valuation suit. House Bill 2201 (1997) deleted the unconstitutional portion of Section 42.08(b) and amended Section 42.42 for the due date of a post-appeal supplemental tax bill and the penalty and interest on such bill. By changing the delinquency date for pending valuation cases not yet reduced to judgment, the Legislature did no more than remit a penalty, not release an indebtedness or liability owed to a political subdivision of the State. HB 2201 is not an unconstitutional release of an indebtedness under Article III, Section 55, Texas Constitution. Jefferson County, et. al v. Clark Refining & Marketing, Inc., 7 S.W.3d 324 (Tex. App. - Beaumont 1999).

Sec. 42.43. Refund.

(a) If the final determination of an appeal that decreases a property owner's tax liability occurs after the property owner has paid his taxes, the taxing unit shall refund to the property owner the difference between the amount of taxes paid and amount of taxes for which the property owner is liable.

(b) For a refund made under this section because an exemption under Section 11.20 that was denied by the chief appraiser or appraisal review board is granted, the taxing unit shall include with the refund interest on the amount refunded calculated at an annual rate that is equal to the auction average rate quoted on a bank discount basis for three-month treasury bills issued by the United States government, as published by the Federal Reserve Board, for the week in which the taxes became delinquent, but not more than 10 percent, calculated from the delinquency date for the taxes until the date the refund is made. For any other refund made under this section, the taxing unit shall include with the refund, interest on the amount refunded at an annual rate of eight percent, calculated from the delinquency date for the taxes until the date the refund is made.

(c) Notwithstanding Subsection (b), if a taxing unit does not make a refund, including interest, required by this section before the 60th day after the date the chief appraiser certifies a correction to the appraisal roll under Section 42.41, the taxing unit shall include with the refund interest on the amount refunded at an annual rate of 12 percent, calculated from the delinquency date for the taxes until the date the refund is made.

(d) A property owner who prevails in a suit to compel a refund, including interest, required by this section that is filed on or after the 180th day after the date the chief appraiser certifies a correction to the appraisal roll is entitled to court costs and reasonable attorney's fees.

Amended by 1987 Tex. Laws, ch. 640, Sec. 4; amended by 1989 Tex. Laws, p. 3605, ch. 796, Sec. 46; amended by 1993 Tex. Laws, p. 2251, ch. 592, Sec. 1; amended by 1997 Tex. Laws, p. 3917, ch. 1039, Sec. 43; amended by 2001 Tex. Laws, p. 463, ch. 253, Sec. 1.

Cross References:

Correction of tax roll, see Sec. 26.14.
Interest on refunds generally, see Sec. 31.12.

Notes:

Interest on tax refunds is recoverable on all chapter 42 judgments paid after June 15, 1989, regardless of when the lawsuit was filed. Each year's interest is calculated separately. Op. Tex. Att'y Gen. No. JM-1205 (1990).