All Roll Calls
Yes: 453 • No: 1
TexasSB 85089th Legislature Regular SessionSenateWALLET
Relating to the payment of certain ad valorem tax refunds.
Sponsored By: Greg Bonnen, Mayes Middleton (Republican)
Signed by Governor
Taxation--Property-Appeal of Tax DecisionsTaxation--Property-Appraisals & Appraisal DistrictsTaxation--Property-Assessment & CollectionTaxation--Property-ExemptionsTaxation--Property-Tax RateCOUNTY TAX ASSESSOR-COLLECTORS
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
7 provisions identified: 6 benefits, 0 costs, 1 mixed.
Automatic refunds for late homestead exemptions
A late homestead exemption approved after appraisal records are approved triggers a refund of taxes already paid on the exempt amount. The collector must send the refund without requiring an application. The money goes to whoever owned the home when the tax was paid. These rules cover refunds arising on or after September 1, 2025.
Automatic refunds for property tax overpayments
For refunds arising on or after September 1, 2025, confirmed property tax overpayments of $20 or more need no application. The collector must refund the money or apply it to next year’s taxes. The collector must find an error or overpayment, and the taxing unit’s auditor must agree. For amounts under $20, taxpayers must apply for a refund. Refunds under $5 are now included in these rules.
Faster property tax refunds with interest
For covered refunds arising on or after September 1, 2025, the law replaces older 90-day deadlines with a 60-day framework. Covered cases include exemptions, tax corrections, overpayments, and escrow returns. The clock starts when refund liability arises, using the applicable certification, order, decision, or agreement date. Late refunds earn 12% yearly interest from that starting date until payment; timely refunds owe no interest under this framework. For boundary-dispute refunds under Section 72.010, the deadline runs from the final Texas Supreme Court order.
Refund deadlines after property tax appeals
For refunds arising on or after September 1, 2025, successful Chapter 41A and Texas Comptroller appeals trigger 60-day refund deadlines. Taxing units must return the difference when the final decision lowers taxes below the amount paid. For appeals pending just before delinquency, or earlier at the owner’s request, collectors apply payments as required and refund any remainder. That refund is due within 60 days after the chief appraiser’s notice of the final decision. Late refunds earn 12% yearly interest from the tax delinquency date until paid. The appraisal district reimburses the collector’s interest cost only when the chief appraiser caused the pending-appeal refund delay.
Stronger protections for court appeal refunds
For refunds arising on or after September 1, 2025, Section 42.43 appeal refunds earn 9.5% yearly interest from tax delinquency until payment, unless waived. If the refund and interest remain unpaid before day 60 after the final decision, the 12% yearly interest rule applies. Owners who win suits compelling these refunds get court costs and reasonable attorney’s fees when filing on or after day 60. That filing threshold replaces day 180. Taxpayers can also sue in district court for unpaid refunds, joining each taxing unit denying payment and meeting existing filing deadlines. For general refund suits, attorney’s fees are capped at the greater of $1,500 or 30% of the court-determined refund. Appeal judgments cannot require IRS forms before payment unless federal law requires them.
Organizations receive late exemption tax refunds
Organizations receive refunds when their late exemption applications are approved after the year’s appraisal records are approved. Collectors must return covered taxes, penalties, and interest that the organization paid under protest. The refund covers a year included in the exemption and goes to the organization, not directly to households. These rules cover refunds arising on or after September 1, 2025.
Tax refunds can pay overdue taxes
A taxing unit may use a property tax overpayment to pay overdue property taxes owed to that same unit. This can cover another property or another tax year. The taxpayer must have solely owned each property on January 1 of the year its taxes were assessed. The offset lowers tax debt but reduces the cash refund. These rules cover refunds arising on or after September 1, 2025.
Sponsors & Cosponsors
Sponsors
Greg Bonnen
House
Mayes Middleton
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/30/2025
Record vote
Yes: 31 • No: 0
House vote • 5/28/2025
Record vote
Yes: 140 • No: 1
House vote • 5/27/2025
Record vote
Yes: 132 • No: 0
House vote • 5/27/2025
Record vote
Yes: 133 • No: 0
Senate vote • 4/10/2025
Record vote
Yes: 0 • No: 0
Senate vote • 4/10/2025
Record vote
Yes: 0 • No: 0
House vote • Unknown
Committee vote: Ways & Means
Yes: 11 • No: 0
Senate vote • Unknown
Committee vote: Local Government
Yes: 6 • No: 0
Actions Timeline
Effective on 9/1/25
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
6/1/2025HouseSigned in the House
6/1/2025HouseSigned in the Senate
5/31/2025SenateSenate concurs in House amendment(s)-reported
5/31/2025HouseReported enrolled
5/30/2025SenateRecord vote
5/30/2025SenateSenate concurs in House amendment(s)
5/30/2025SenateRead
5/30/2025SenateHouse amendment(s) laid before the Senate
5/30/2025SenateHouse passage as amended reported
5/28/2025SenateStatement(s) of vote recorded in Journal
5/28/2025HouseRecord vote (RV#3861)
5/28/2025HousePassed
5/28/2025HouseRead 3rd time
5/28/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3733)
5/27/2025HousePassed to 3rd reading as amended
5/27/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3732)
5/27/2025HouseAmended (1-Bonnen)
5/27/2025HouseRead 2nd time
5/27/2025HousePlaced on General State Calendar
5/24/2025HouseConsidered in Calendars
5/22/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
Related Bills
SB 785, Relating to the regulation of new HUD-code manufactured housing.
SB 650, Relating to requiring the use of electronically readable information to verify a purchaser's age in the retail sale of alcoholic beverages.
SB 646, Relating to repayment of certain mental health professional education loans.
SB 25, Relating to health and nutrition standards to promote healthy living, including requirements for food labeling, primary and secondary education, higher education, and continuing education for certain health care professionals; authorizing a civil penalty.
HB 4325, Relating to civil liability for prohibited barratry.
HB 4042, Relating to the applicability of certain safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution pipelines.