HBA-CBW C.S.H.B. 2832 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2832
By: Smithee
Ways & Means
4/20/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, tax collecting authorities are not required to notify a
taxpayer of an overpayment. If a taxpayer makes an overpayment on his or
her taxes, he or she may submit a written request or submit a form provided
by the comptroller of public accounts within three years of making the
payment or the taxpayer waives the right to a refund. Many taxpayers in
Texas are unaware that an overpayment has occurred and thus have no reason
to request a refund.  Currently,  most jurisdictions in Texas have a
mechanism in place to notify taxpayers of overpayment, but some do not.
C.S.H.B. 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

C.S.H.B. 2832 amends the Tax Code to require the collector for a taxing
unit (collector), 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2832 differs from the original bill by requiring the collector of
a taxing unit to refund a payment of  taxes to a person who erred in making
a payment because the identical taxes were paid by another person.  The
substitute sets forth provisions regarding the refund of duplicate
payments.