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Budget Rider on Tax Refunds
House Bill 1, 78th Regular Session
Fiscal Programs - Comptroller of Public Accounts
Page I-37


  11. Appropriation of Tax Refunds. As much of the respective taxes, fees, and charges, including penalties or other financial transactions administered or collected by the Comptroller as may be necessary is hereby appropriated and set aside to pay refunds, interest, and any costs and attorney fees awarded in court cases, as provided by law, subject to the following limitations and conditions:
 
    a. Unless another law, or section of this Act, provides a period within which a particular refund claim must be made, funds appropriated herein may not be used to pay a refund claim made under this section after four years from the latest date on which the amount collected or received by the State was due, if the amount was required to be paid on or before a particular date. If the amount was not required to be paid on or before a particular date, a refund claim may not be made after four years from the date the amount was collected or received. A person who fails to make a refund claim within the period provided by law, or this provision, shall not be eligible to receive payment of a refund under this provision.
 
    b. As a specific limitation to the amount of refunds paid from funds appropriated in this Act during the 2004-05 biennium, the Comptroller shall not approve claims or issue warrants for refunds in excess of the amount of revenue estimated to be available from the tax, fee, or other revenue source during the biennium according to the Biennial Revenue Estimate of the Comptroller of Public Accounts used for certification of this Act. Any claim or portion of a claim which is in excess of the limitation established by this subsection "b" shall be presented to the next legislature for a specific appropriation in order for payment to be made. The limitation established by this subsection "b" shall not apply to any taxes or fees paid under protest.
 
    c. None of the funds appropriated by this provision may be expended to pay a refund claim, a final judgment (sic), or a settlement, including any statutory interest thereon or any costs and attorney fees awarded by court order, that is in excess of $250,000. Any claim that is in excess of the limitation established by this subsection "c" shall be presented to the legislature for a specific appropriation in order for payment to be made.
 
    d. None of the funds appropriated by this provision may be expended to pay a refund claim, a final judgment, or a settlement, including any statutory interest thereon or any costs and attorney fees awarded by court order, that would cause the aggregate amount paid to, or on behalf of, an individual or entity pursuant to this provision during the biennium beginning September 1, 2003, to exceed $250,000. Any claim that is in excess of the limitation established by this subsection "d" shall be presented to the legislature for a specific appropriation in order for payment to be made.
 
    e. The limitations established by subsection "c" and subsection "d" do not apply to a payment made:
(1) on a final judgment in those cases where the judgment order of the trial court was entered prior to the effective date of this Act,
(2) on a settlement agreement executed prior to the effective date of this Act, or
(3) on a Comptroller's final decision issued prior to the effective date of this Act.
 
    f. For purposes of this provision, "final judgment" means a judgment rendered in a federal court or a court in this state for which an appeal or rehearing, or application therefore (sic), is not pending and for which the time limitations for appeal or rehearing have expired. For the purposes of this provision, a Comptroller's final decision means a decision of the Comptroller which is administratively final and for which limitations has expired for seeking rehearing or filing a lawsuit in court. For the purposes of this provision, a "settlement agreement" must be in writing and signed by the necessary parties. A settlement agreement shall be deemed to be "executed" on the date upon which the last signature of a necessary party is affixed thereon.
 
    g. The payment of a settlement or final judgment may be made only with a complete release from any and all related claims and causes against the State, and in the case of a judgment, the payment may be made only in full satisfaction of that judgment.
 
    h. Subsection "c" and subsection "d" shall not apply to a refund granted pursuant to an informal review under Section 111.1042 of the Tax Code, if that refund claim is filed with the Comptroller no later than 120 days after the original due date of the report for the period for which the refund is claimed.
 
    i. This provision shall not apply to refunds of unclaimed property made pursuant to Title 6 of the Property Code.
 
    j. Except pursuant to this provision, none of the funds appropriated by this Act may be expended to pay a refund of any tax, fee, penalty, charge, or other assessment collected or administered by the Comptroller or to pay a judgment, settlement, or administrative hearing decision, including any statutory interest thereon or any costs and attorney fees awarded by court order, relating to a refund of any tax, fee, penalty, charge or other assessment collected or administered by the Comptroller.


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