HBA-AMW, CBW H.B. 2832 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2832
By: Smithee
Ways & Means
7/27/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, tax collecting authorities were not required
to notify a taxpayer of an overpayment. If a taxpayer made an overpayment
on his or her taxes, he or she had to submit a written request or a form
provided by the comptroller of public accounts within three years of making
the payment or the taxpayer waived the right to a refund. Many taxpayers in
Texas were unaware that an overpayment had occurred and thus had no reason
to request a refund.  Some jurisdictions in Texas did not have a mechanism
in place to notify taxpayers of overpayment. House Bill 2832 requires the
collector for a taxing unit to notify a taxpayer of an overpayment of more
than $5 and sets forth provisions regarding the refund of duplicate
payments. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2832 amends the Tax Code to require the collector for a taxing
unit, without charge, to mail to a taxpayer or a taxpayer's representative
a written notice of the amount of an overpayment accompanied by a refund
application form if the taxpayer submits a payment of taxes that exceeds by
$5 or more the amount of taxes owed for a tax year to the taxing unit.   

The bill requires the collector who determines that a person erred in
making a payment of taxes because the identical taxes were paid by another
person to refund the amount of the taxes to the person who erred in making
the payment.  The bill requires the refund to be made as soon as
practicable after the collector discovers the erroneous payment and
requires the refund to be accompanied by a description of the property
subject to the taxes sufficient to identify the property.  The bill
requires the collector to include the account number if the property is
assigned an account number.  Each month, the bill requires the collector to
inform the auditor of each appropriate taxing unit of refunds of taxes made
during the preceding month. The bill modifies provisions regarding
liability for a refund to include refunds of duplicate payments. 

EFFECTIVE DATE

January 1, 2002.