Texas House Bill HB255

Texas 2011 - 82nd Regular

• Out of House Committee: 4/13/11
• Introduced: 3/1/11
• Refer: 3/2/11
• Report Pass: 3/28/11

Caption

Relating to the enforcement of tax laws; providing a criminal penalty.

Impact

The implications of HB255 are significant as it amends several sections of the Tax Code. It establishes a tiered penalty system that categorizes offenses based on the amount of unpaid tax, thus escalating the severity of penalties as the tax evasion amount increases. By introducing new rules regarding the retention of records and responsibilities for sellers, the bill seeks to improve the overall integrity of tax collection processes in Texas. Additionally, it allows investigators employed by the comptroller to have broader powers to investigate tax crime related offenses, ensuring that fraudulent activities can be properly addressed.

Summary

House Bill 255 (HB255) focuses on the enhancement of tax law enforcement in the state of Texas by revising penalties related to tax fraud and noncompliance. A notable feature of this bill includes the introduction of specific criminal penalties for those who fail to pay collected taxes and for those who do not comply with the requirement to maintain requisite financial records. The aim is to protect state revenue and ensure that financial reporting by sellers and taxpayers is adequately monitored and enforced.

Contention

Noteworthy points of contention surrounding HB255 relate to concerns about the bill's stringent penalties and the potential for overreach in tax enforcement. Critics argue that the enhanced penalties could disproportionately impact smaller businesses and individuals who may unintentionally fail to comply with complex tax regulations. Furthermore, the bill's empowerment of comptroller investigators raises questions about the balance between necessary oversight and the potential for invasive audits. Ultimately, while the bill aims to bolster state revenue through stricter enforcement, it also raises concerns about fairness and the administrative burden placed on taxpayers.