By: Howard of Fort Bend H.B. No. 4078
A BILL TO BE ENTITLED
AN ACT
relating to the administration of the municipal sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 321, Tax Code, is amended
by adding Section 321.3075 to read as follows:
Sec. 321.3075. REFUNDS: LIMITATIONS. (a) Notwithstanding
Section 111.104(c) or any other law, the comptroller may not grant a
refund claim in relation to tax revenue previously allocated to a
municipality unless the refund claim is filed with the comptroller
not later than the first anniversary of the date the municipality
originally received that revenue from the comptroller.
(b) Section 111.203 does not apply to the filing of a refund
claim described by Subsection (a) and the comptroller may not
extend the limitation period provided by Subsection (a).
(c) This section does not affect the limitation period for
the filing of a refund claim relating to tax revenue allocated to a
political subdivision, other than a municipality, whose imposition
of the sales and use tax is governed by this chapter.
SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended
by adding Section 321.5026 to read as follows:
Sec. 321.5026. REFUND OR REALLOCATION OF MUNICIPAL TAX
REVENUE. (a) If the comptroller determines that a tax refund claim
should be granted that would result in the claimant receiving at
least $100,000 in tax revenue collected by the comptroller that has
been previously allocated to a municipality, the comptroller may
grant the refund claim in relation to that revenue only if:
(1) the refund claim was filed before the expiration
of the limitation period prescribed by Section 321.3075(a); and
(2) the refund of that revenue is made in accordance
with this section.
(b) If the comptroller determines that tax revenue
collected by the comptroller has been sent incorrectly to a
municipality under Section 321.502, the comptroller may reallocate
the tax revenue to the appropriate municipality only if the
reallocation is made in accordance with this section not later than
the first anniversary of the date the municipality originally
received that revenue from the comptroller.
(c) If the comptroller determines that a tax refund claim
described by Subsection (a) should be granted or that a
reallocation described by Subsection (b) should be made, the
comptroller shall send to that municipality written notice that the
comptroller intends to grant the tax refund claim or reallocate the
revenue. A municipality that receives a notice under this
subsection may protest the comptroller's determination by
submitting to the comptroller a written request for a hearing on the
issue of whether the person who filed the tax refund claim is
entitled to the refund or whether the original allocation of the
revenue was incorrect. The municipality must submit the request not
later than the 30th day after the date the municipality receives the
notice under this subsection.
(d) Not later than the 15th day after the date the
comptroller receives a request for a hearing under Subsection (c),
the comptroller shall send to the requesting municipality a copy of
all records, documents, and other information on which the
comptroller relied in making its determination, regardless of
whether the information is confidential under state law, including
Sections 111.006 and 151.027. The provision of confidential
information to a municipality under this subsection does not affect
the confidential nature of the information. A municipality shall
use the information only in a manner that maintains the
confidential nature of the information and may not disclose or
release the information to the public.
(e) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request for a hearing
under Subsection (c), the comptroller shall hold a hearing on
whether the person who filed the tax refund claim is entitled to the
refund or whether the original allocation of the revenue was
incorrect. After the conclusion of the hearing, the comptroller
shall issue to the municipality a written final decision regarding
the protest. For purposes of Section 2001.171, Government Code,
the comptroller's decision is final and appealable on the date the
decision is issued under this subsection.
(f) If the municipality is not satisfied with the
comptroller's written final decision, the municipality may appeal
the decision by filing a petition in a Travis County district court
not later than the 30th day after the date the municipality receives
the decision. Judicial review of the decision is under the
substantial evidence rule. The court shall hear the appeal without
a jury.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.