Texas Senate Bill SB1753

Texas 2009 - 81st Regular

Caption

Relating to the procedure for reallocating local sales and use taxes.

Impact

The new procedure outlined in SB1753 is intended to improve the fairness and transparency of municipal tax allocations. It establishes a more structured process for handling reallocations, which could help mitigate disputes between municipalities and the comptroller's office. By allowing municipalities to appeal the decisions made by the comptroller, the bill aims to protect local governments from potential revenue losses due to administrative errors and strengthens their accountability mechanisms.

Summary

SB1753 seeks to establish a clearer and formalized procedure for reallocating local sales and use taxes in Texas. The bill amends the Tax Code by introducing specific guidelines that the comptroller must follow when determining if tax revenues have been incorrectly allocated to a municipality. If a municipality is found to have received an incorrect amount, the comptroller is required to provide written notification and allow the municipality the opportunity to contest this determination through a formal protest process, which includes the right to a hearing.

Contention

However, there are potential points of contention regarding the implementation of the reallocation process. Some local governments may view the bill as adding layers of bureaucracy that could delay timely access to funds. There may also be concerns about the powers of the comptroller in determining allocation errors and how these processes will be communicated to municipalities to prevent misunderstandings. Moreover, there could be differing opinions on how comprehensively the law addresses the issues surrounding tax allocation and the powers bestowed upon the comptroller.