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.