TX SB850

Requires tax collectors to automatically refund overpayments of $20 or more without requiring taxpayers to file an application; overpayments under $20 still require a taxpayer application

Mandates all tax refunds covered by the bill be paid within 60 days after liability for the refund arises, reducing previous deadlines that ranged up to 180 days

Imposes 12% annual interest on late refunds if taxing units fail to make payments within the required 60-day period, calculated from the delinquency date until the refund is made

Removes requirements for governing body approval of refunds, streamlining the process to require only agreement between the tax collector and auditor

Applies to ad valorem tax refunds arising on or after September 1, 2025, covering refunds from various situations including exemption approvals, tax roll corrections, and appeal determinations