Relating to the payment of certain ad valorem tax refunds.
Summary
SB 402 amends Section 1.071 of the Texas Tax Code to change how certain ad valorem tax refunds are delivered. Under current law, a collector or taxing unit generally sends a refund to the mailing address listed on the appraisal roll. The bill keeps that default rule, but adds a formal process allowing a person owed a refund to request, in writing on a comptroller-prescribed form, that the refund be sent to a different address before the refund is issued.
The bill also directs the comptroller to create the request form and include a warning about criminal penalties for false statements, and it allows a person to revoke a prior request by filing a written revocation. The change applies only to requests filed on or after the bill’s effective date, September 1, 2025; earlier requests remain governed by prior law.
Impact
SB 402 affects local tax collectors and taxing units that issue property tax refunds, as well as taxpayers entitled to ad valorem tax refunds. It creates a new statutory mechanism for redirecting refund payments to an address chosen by the recipient, rather than relying solely on the appraisal roll mailing address, and it standardizes the process through a comptroller form. The bill does not change who is entitled to a refund or how refund amounts are calculated; it changes only the delivery method and related administrative procedures under the Tax Code.
Sentiment
The bill appears to have been broadly noncontroversial and received strong support in both chambers. It passed the Senate unanimously and the House by a wide margin, with only one dissenting vote and two members present not voting. The voting pattern suggests general agreement that the measure is a practical administrative fix for refund delivery.
Contention
There is little evidence of substantive opposition in the available record, and no committee transcript excerpts are provided. Any potential concern would likely center on administrative safeguards, since the bill allows taxpayers to redirect refunds and requires a form carrying a Penal Code false-statement warning. The main policy issue is balancing convenience for taxpayers against the need for accurate, secure refund delivery by tax offices.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.