Relating to the authority of an ad valorem tax collector to waive penalties for failing to file certain statements.
Impact
If enacted, HB 2655 would amend Chapter 23 of the Texas Tax Code by adding a new provision that allows for the penalty waiver in specific cases. The law would effectively enable tax collectors to grant more leniency to businesses that show substantial compliance with tax filing requirements. This change could significantly impact the relationship between tax authorities and businesses, potentially reducing the financial burden on retailers and dealers during tax season.
Summary
House Bill 2655 addresses the authority of ad valorem tax collectors in Texas to waive penalties for retail and dealer businesses that fail to file certain required statements. The bill proposes that if a tax collector determines that a business has exercised reasonable diligence in attempting to comply with filing requirements, the penalties can be waived. This is seen as a way to provide relief to businesses that may inadvertently fail to comply due to circumstances beyond their control, such as changes in tax policies or reliance on incorrect guidance from tax authorities.
Contention
While proponents of the bill argue that it provides necessary flexibility and support to businesses, there may be concerns regarding the implementation of the waiver authority. Specifying the conditions under which penalties can be waived requires careful consideration to ensure that it does not lead to inconsistencies or abuse of discretion by collectors. Additionally, opposition may arise from those who believe that waiving penalties could compromise tax compliance and revenue collection for the state.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
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.