Texas House Bill HB2071

Texas 2009 - 81st Regular

• Out of House Committee: 4/17/09
• Voted on by House: 4/24/09
• Out of Senate Committee: 5/8/09
• Voted on by Senate: 5/13/09
• Governor Action: 5/23/09
• Enrolled: 5/15/09
• Passed: 5/23/09

Caption

Relating to the reporting of certain inventories for ad valorem tax purposes; providing penalties.

Impact

The legislation is designed to enhance compliance among dealers by imposing a penalty of $1,000 for each month that inventory declarations are not filed or filed late. An important part of the bill is the establishment of a tax lien that automatically attaches to a dealer's business personal property to secure the payment of these penalties. This provision creates a significant pressure for compliance and could impact small businesses significantly if they struggle to meet the new requirements or face financial hardships due to penalties incurred.

Summary

House Bill 2071 relates to the reporting of certain inventories for ad valorem tax purposes, introducing specific penalties for failure to meet these reporting requirements. The bill amends existing legislation to strengthen the framework for how dealers report their inventory values, particularly for property taxation. This is aimed at ensuring that businesses accurately declare their inventories to the taxing authorities and adhere to the regulatory requirements set out by state tax codes.

Contention

While the intention behind HB 2071 is to promote tax compliance and ensure fair taxation practices, there may be concerns regarding the potential burden it places on small businesses or those with fluctuating inventory levels. Critics might argue that the penalties are excessively harsh, particularly in cases where unforeseen circumstances lead to delayed filings. The automatic lien on business property could also raise issues for some dealers, making them vulnerable to financial hardships they may not be able to predict or manage effectively.