Texas § TX.31.11 - REFUNDS OF OVERPAYMENTS OR ERRONEOUS PAYMENTS

§ TX.31.11. REFUNDS OF OVERPAYMENTS OR ERRONEOUS PAYMENTS

REFUNDS OF OVERPAYMENTS OR ERRONEOUS PAYMENTS. (a) If a taxpayer submits a tax payment that exceeds by $20 or more the amount of taxes the taxpayer owes for a tax year to a taxing unit, the collector for the taxing unit shall refund the amount of the erroneous or excessive payment to the taxpayer, or apply the amount of the erroneous or excessive payment to the amount of taxes the taxpayer owes for the following tax year, after the collector determines the payment was erroneous or excessive if the auditor for the taxing unit agrees with the collector's determination. (a-1) If a taxpayer submits a tax payment that exceeds by less than $20 the amount of taxes the taxpayer owes for a tax year to a taxing unit and the taxpayer applies to the collector for the taxing unit for a refund of the erroneous or excessive payment, the collector for the taxing unit shall refund the amount of the erroneous or excessive payment to the taxpayer after the collector determines that the payment was erroneous or excessive if the auditor for the taxing unit agrees with the collector's determination. (a-2) The collector for a taxing unit shall make a refund under Subsection (a) or (a-1) using available current tax collections or money appropriated by the taxing unit for the purpose of making refunds. (b) Notwithstanding Subsections (a) and (a-1), a taxing unit that determines a taxpayer is delinquent in ad valorem tax payments on property other than the property for which liability for a refund arises or for a tax year other than the tax year for which liability for a refund arises may apply the amount of an overpayment or erroneous payment to the payment of the delinquent taxes if the taxpayer was the sole owner of the property: (1) for which the refund is sought on January 1 of the tax year in which the taxes that were overpaid or erroneously paid were assessed; and (2) on which the taxes are delinquent on January 1 of the tax year for which the delinquent taxes were assessed. (c) Except as provided by Subsection (c-1), an application for a refund must be made within three years after the date of the payment or the taxpayer waives the right to the refund. A taxpayer may apply for a refund by filing: (1) an application on a form prescribed by the comptroller by rule; or (2) a written request that includes information sufficient to enable the collector and the auditor for the taxing unit to determine whether the taxpayer is entitled to the refund. (c-1) The governing body of the taxing unit may extend the deadline provided by Subsection (c) for a single period not to exceed two years on a showing of good cause by the taxpayer. (d) Repealed by Acts 2025, 89th Leg., R.S., Ch. 993 (S.B. 850 ), Sec. 14, eff. September 1, 2025. (e) An application for a refund must: (1) include an affirmation by the taxpayer that the information in the application is true and correct; and (2) be signed by the taxpayer. (f) This subsection applies only to an application for a refund that is filed with the collector for a taxing unit after the deadline for filing the application is extended by the governing body of the taxing unit under Subsection (c-1). The presiding officer of the governing body of the taxing unit is not required to sign the application for the refund or any document accompanying the application to indicate the governing body's approval or disapproval of the extension of the deadline prescribed by Subsection (c) as it relates to the application. The collector for the taxing unit shall indicate on the application whether the governing body approved or disapproved the extension of the deadline and the date of the approval or disapproval. (g) If a taxpayer submits a payment of taxes that exceeds the amount of taxes owed for a tax year to a taxing unit, the collector for the taxing unit, without charge, shall mail to the taxpayer or the taxpayer's representative a written notice of the amount of the overpayment. If the amount of the overpayment is at least $20, the notice must state that the taxpayer is not required to apply for the refund. If the amount of the overpayment is less than $20, the notice must state that the taxpayer is required to apply for the refund and the collector shall include with the notice a refund application form. (h) This section does not apply to an overpayment caused by a change of exemption status or correction of a tax roll, including an overpayment received after a correction of a tax roll as a result of an appeal under Chapter 42 . Such an overpayment is covered by Section 26.15 or 42.43 , as applicable. (i) Repealed by Acts 2025, 89th Leg., R.S., Ch. 993 (S.B. 850 ), Sec. 14, eff. September 1, 2025. (j) If the collector for a taxing unit does not respond to an application for a refund on or before the 90th day after the date the application is filed with the collector, the application is presumed to have been denied. (k) A taxpayer may file suit against a taxing unit in district court to compel the payment of a refund. If the collector for the taxing unit collects taxes for more than one taxing unit, the taxpayer shall join in the suit each taxing unit on behalf of which the collector denied the refund. For a refund for which a taxpayer is not required to file an application, the suit must be filed not later than the 60th day after the date the taxpayer receives the notice required by Subsection (g). For a refund for which a taxpayer is required to file an application, the suit must be filed not later than the 60th day after the date the collector for the taxing unit denies the application for the refund. If the taxpayer prevails in the suit, the taxpayer may be awarded: (1) costs of court; and (2) reasonable attorney's fees in an amount not to exceed the greater of: (A) $1,500; or (B) 30 percent of the total amount of the refund determined by the court to be due. Added by Acts 1981, 67th Leg., 1st C.S., p. 167, ch. 13, Sec. 126, eff. Jan. 1, 1982. Amended by Acts 1993, 73rd Leg., ch. 198, Sec. 1, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 565, Sec. 1, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 915, Sec. 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 673, Sec. 1, eff. Jan. 1, 2002; Acts 2001, 77th Leg., ch. 843, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1430, Sec. 8, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 756, Sec. 1, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 464 (H.B. 1210 ), Sec. 1, eff. June 16, 2007. Acts 2009, 81st Leg., R.S., Ch. 69 (H.B. 1205 ), Sec. 1, eff. January 1, 2010. Acts 2009, 81st Leg., R.S., Ch. 494 (S.B. 798 ), Sec. 1, eff. January 1, 2010. Acts 2013, 83rd Leg., R.S., Ch. 643 (H.B. 709 ), Sec. 3, eff. January 1, 2014. Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585 ), Sec. 17, eff. June 14, 2013. Acts 2021, 87th Leg., R.S., Ch. 644 (H.B. 988 ), Sec. 13, eff. January 1, 2022. Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559 ), Sec. 220, eff. September 1, 2023. Acts 2025, 89th Leg., R.S., Ch. 993 (S.B. 850 ), Sec. 8, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 993 (S.B. 850 ), Sec. 14, eff. September 1, 2025.