Texas Senate Bill SB1199

Texas 2009 - 81st Regular

• Out of Senate Committee: 3/31/09
• Voted on by Senate: 4/9/09
• Out of House Committee: 5/20/09
• Voted on by House: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 5/30/09
• Passed: 6/19/09

Caption

Relating to refunds of and credits for certain sales and use taxes.

Impact

The potential impact of SB1199 on state laws is notable, as it sets clearer guidelines for exempt organizations regarding their sales and use tax liabilities. Organizations can better understand their tax obligations and the points at which they may become eligible for refunds or credits. The bill also emphasizes the importance of timely applications for tax exemptions, which could encourage more organizations to formally apply for these exemptions, potentially altering the state's tax revenue dynamics.

Summary

SB1199 is an act focused on the administration of sales and use taxes paid by specific exempt organizations in Texas. The bill amends Section 151.310 of the Tax Code, introducing a new provision that clarifies the conditions under which these organizations can claim refunds or credits for taxes they have paid. Essentially, it specifies that an organization is not considered exempt from taxation until they either apply for the exemption or have their tax liability assessed by the comptroller during an audit. This aims to establish a more definitive date for tax exemption claims, thus providing clarity for both the organizations and the state revenue department.

Contention

While the bill primarily aims to streamline processes and ensure compliance with tax regulations, there may be points of contention regarding the practical implications for exempt organizations. Critics may argue that requiring organizations to wait for either an application or an assessment before being recognized as exempt could complicate their financial planning. Additionally, some organizations may feel disadvantaged if they are unaware of these stipulations, potentially leading to disputes over tax refunds and credits owing to misinterpretations of their status under the law.