Regular Session
Government Affairs & Regulatory Compliance Analysis
SB850 fundamentally shifts the property tax refund burden from the taxpayer to the government, mandating automatic refunds for overpayments exceeding $20 effective September 1, 2025. While the law benefits businesses by imposing a 12% interest penalty on Taxing Units that fail to pay within 60 days, it simultaneously creates a strict, shortened 60-day statute of limitations for filing lawsuits regarding denied refunds.
Sen. Mayes Middleton·Senate Bill·Regular Session
County Tax Assessor-Collectors • Municipal Tax Collectors • Texas Comptroller of Public Accounts
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB850
SB850 fundamentally shifts the property tax refund burden from the taxpayer to the government, mandating automatic refunds for overpayments exceeding $20 effective September 1, 2025. While the law benefits businesses by imposing a 12% interest penalty on Taxing Units that fail to pay within 60 days, it simultaneously creates a strict, shortened 60-day statute of limitations for filing lawsuits regarding denied refunds.
SB850 was authored by Texas Senator Mayes Middleton during the Regular Session.
SB850 was signed into law by Governor Greg Abbott on June 20, 2025.
SB850 is enforced by County Tax Assessor-Collectors, Municipal Tax Collectors and Texas Comptroller of Public Accounts.
The regulatory priority for SB850 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB850 is estimated as "low". This may vary based on industry and implementation requirements.
SB850 addresses topics including taxation, taxation--property-appeal of tax decisions, taxation--property-appraisals & appraisal districts, taxation--property-assessment & collection and taxation--property-exemptions.
Key dates for SB850: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB850 establishes the following penalties: administrative penalty of 12% annual interest for Penalty imposed on Taxing Units (paid to the taxpayer) if the collector fails to issue a refund within 60 days of the liability arising or appeal determination.. Consult with legal counsel for specific applicability to your situation.
SB850 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
