Texas Senate Bill SB69

Texas 2013 - 83rd Regular

• Filed: 11/12/12

Caption

Relating to certain reimbursements provided for the collection of sales and use taxes.

Impact

The introduction of SB69 will have a notable impact on state tax laws by revising the calculations related to tax reimbursements. Additionally, it introduces a ceiling on the amount that can be reimbursed monthly, quarterly, and annually, creating a structured limit that taxpayers must adhere to. This change is expected to streamline the reimbursement process while also ensuring that taxpayers do not excessively benefit from their tax collection efforts. Furthermore, the bill ensures that collected taxes continue to contribute to the general revenue fund, with amendments aimed at how surplus reimbursement funds will be allocated.

Summary

Senate Bill 69 (SB69) focuses on the provisions related to reimbursements provided for the collection of sales and use taxes in Texas. The bill amends Section 151.423 of the Tax Code, allowing taxpayers to deduct and withhold a revised percentage of taxes due as a reimbursement for tax collection costs. This amendment changes the percentage from one-half to three-fourths of one percent, potentially easing the financial burden on taxpayers engaged in tax collection and reporting, thus incentivizing compliance with tax laws.

Sentiment

The sentiment surrounding SB69 appears to be cautiously optimistic among taxpayers and those managing tax collection processes. Supporters of the bill argue that it provides necessary relief and a more equitable framework for rebates on tax collection efforts, promoting fairer treatment of taxpayers. However, there may be concerns among some lawmakers about the long-term implications of reducing tax revenues obtainable by the state, which could impact funding for various programs dependent on these revenues.

Contention

Discussion around SB69 may highlight contention regarding the limitations placed on reimbursements. The established caps on refunds could be seen as a compromise that ensures taxpayers receive some level of assistance without an overwhelming drain on the state’s financial resources. Nonetheless, the restrictions could also lead to debates on whether such limitations disproportionately affect smaller businesses that already operate on thin margins. The balancing act between taxpayer relief and the state's budgetary needs is likely to be at the forefront of discussions as SB69 is debated and voted upon.