81R559 KLA-D
By: Shapleigh S.B. No. 190
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax rebate for certain low-income
families.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 151, Tax Code, is amended by adding
Subchapter N to read as follows:
SUBCHAPTER N. WORKING FAMILIES TAX REBATE
Sec. 151.851. ENTITLEMENT TO REBATE. Subject to Section
151.854, a person is entitled to a rebate in the amount and under
the conditions provided by this subchapter for sales and use taxes
paid under this chapter if:
(1) the person's address listed on the person's most
recent federal income tax return is in this state;
(2) the person was a resident of this state for at
least 180 days of the most recent federal income tax year or, if the
person is married and jointly filed a federal income tax return with
the person's spouse for the most recent federal income tax year, the
person's spouse was a resident of this state for at least 180 days
of that year; and
(3) the person received a federal earned income tax
credit authorized by Section 32, Internal Revenue Code of 1986, for
the most recent federal income tax year.
Sec. 151.852. AMOUNT. The amount of the rebate under this
subchapter is equal to 10 percent of the amount of the federal
earned income tax credit a person received for the most recent
federal income tax year.
Sec. 151.853. APPLICATION FOR REBATE. A person must apply
for a rebate under this subchapter not later than December 31 of the
year following the federal income tax year for which the person
received the federal earned income tax credit. The application
must be in the form and manner specified by the comptroller and
include any information the comptroller determines to be necessary
to administer this subchapter.
Sec. 151.854. ALLOCATION BETWEEN CERTAIN PERSONS. (a)
Subject to Subsection (b), if a person who is otherwise entitled to
a rebate under this subchapter jointly filed a federal income tax
return for the most recent federal income tax year with the person's
spouse, the persons who filed the joint return shall:
(1) apply for and jointly receive the rebate; or
(2) choose which of them will apply for and receive the
rebate.
(b) The comptroller shall determine the allocation of a
rebate between two persons who filed a joint federal income tax
return as described by Subsection (a) if those persons cannot agree
to an option provided by that subsection. The comptroller's
allocation determination is final.
Sec. 151.855. VERIFICATION OF ELIGIBILITY. On receipt of
an application under this subchapter, the comptroller shall verify
that the applicant is eligible for the rebate based on:
(1) information provided by the applicant; and
(2) if necessary, other information available to the
comptroller, including information provided by the Internal
Revenue Service.
Sec. 151.856. PAYMENT OF REBATE. (a) The comptroller shall
pay a rebate under this subchapter by any means the comptroller
determines appropriate, including by electronic funds transfer.
(b) A rebate paid under this subchapter is not a refund of
taxes erroneously paid, and Section 111.064, Tax Code, does not
apply.
Sec. 151.857. INFORMATION ON AVAILABILITY OF REBATE. (a)
The comptroller may contact persons who, based on information
obtained from the Internal Revenue Service, are likely to be
eligible for the rebate under this subchapter to inform those
persons of the availability of and eligibility criteria for the
rebate. The comptroller shall comply with Internal Revenue Service
requirements and limitations regarding the use of information
obtained from the service.
(b) The comptroller, in cooperation with other appropriate
state agencies and public and private entities, may implement a
public information campaign to promote the rebate under this
subchapter.
Sec. 151.858. RULES. The comptroller shall adopt rules
necessary to implement this subchapter, including easy and simple
methods by which a person may file an application under Section
151.853. The rules may allow for electronic filing of the
application but must specify at least one other filing method.
SECTION 2. The comptroller shall adopt the rules required
by Section 151.858, Tax Code, as added by this Act, not later than
December 1, 2009.
SECTION 3. A person may file an application for a rebate
under Subchapter N, Chapter 151, Tax Code, as added by this Act, on
or after January 1, 2010.
SECTION 4. This Act takes effect September 1, 2009.