82R1390 ALL-F
By: Thompson H.B. No. 590
A BILL TO BE ENTITLED
AN ACT
relating to amended sales tax reports and the reallocation of sales
tax revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.4065 to read as follows:
Sec. 151.4065. AMENDED REPORT. (a) A taxpayer may amend a
tax report filed under this chapter for a previous reporting period
within the statute of limitations.
(b) The amended report must be filed on the form prescribed
by the comptroller and must:
(1) include an explanation for the amendment; and
(2) be signed by the taxpayer or the person authorized
by the taxpayer to amend the return.
SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended
by adding Section 321.510 to read as follows:
Sec. 321.510. REALLOCATION OF MUNICIPAL OR LOCAL
GOVERNMENTAL ENTITY TAX REVENUE. (a) In this section, "local
governmental entity" includes any governmental entity created by
the legislature that has a limited purpose or function, that has a
defined or restricted geographic territory, and that is authorized
by law to impose a local sales and use tax the imposition,
computation, administration, enforcement, and collection of which
is governed by this chapter.
(b) This section applies only if:
(1) the comptroller intends to reallocate local tax
revenue from a municipality or local governmental entity to another
municipality or local governmental entity; and
(2) the amount the comptroller intends to reallocate
as the result of a single instance is at least equal to the lesser
of:
(A) $200,000; or
(B) an amount equal to 10 percent of the revenue
received by the municipality or local governmental entity under
this chapter during the calendar year preceding the calendar year
in which the reallocation will be made.
(c) This section does not apply to a refund.
(d) The comptroller shall establish administrative
procedures for the examination of amended tax reports filed by
taxpayers under Section 151.4065 that result in a reallocation
amount described by Subsection (b).
(e) If, subject to the criteria provided by this section,
the comptroller concludes after an examination of taxpayer records
that tax revenue collected by the comptroller has been sent
incorrectly to a municipality or local governmental entity under
Section 321.502, the comptroller shall send to that municipality or
local governmental entity written notice that the comptroller
intends to reallocate the revenue to another municipality or local
governmental entity.
(f) The notice must include the following information
concerning the pending reallocation, regardless of whether the
information is confidential under state law, including Sections
111.006 and 151.027:
(1) the identity of the taxpayer;
(2) the reporting periods involved in the pending
reallocation;
(3) the amount of the pending reallocation; and
(4) a summary of the reason for the pending
reallocation.
(g) The provision of confidential information to a
municipality or local governmental entity under this section does
not affect the confidential nature of the information. A
municipality or local governmental entity 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.
(h) A municipality or local governmental entity that
receives a notice under this section may request a review of the
pending reallocation by submitting to the comptroller a written
request for an independent audit review on the issue of whether the
original allocation of the revenue was incorrect. The municipality
or local governmental entity must submit the request not later than
the 30th day after the date the municipality or local governmental
entity receives the notice under this section.
(i) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request for an
independent audit review under Subsection (h), the comptroller
shall conduct an independent audit review on whether the original
allocation of the revenue was incorrect.
(j) The comptroller shall notify each affected taxpayer and
affected municipality or local governmental entity of the
independent audit review. The affected taxpayer and affected
municipality or local governmental entity may participate in the
review.
(k) After the conclusion of the review, the comptroller
shall notify each affected municipality and local governmental
entity in writing whether the reallocation will occur.
SECTION 3. Section 322.108(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsection (b), the following
apply to the taxes imposed by this chapter in the same manner as
applicable to a municipality under Chapter 321:
(1) Section 321.002(a)(3);
(2) Section 321.003;
(3) Section 321.203;
(4) Section 321.205(d);
(5) Section 321.208;
(6) Section 321.209;
(7) Section 321.303;
(8) Section 321.304; [and]
(9) Section 321.305; and
(10) Section 321.510.
SECTION 4. Subchapter F, Chapter 323, Tax Code, is amended
by adding Section 323.510 to read as follows:
Sec. 323.510. REALLOCATION OF COUNTY OR LOCAL GOVERNMENTAL
ENTITY TAX REVENUE. (a) In this section, "local governmental
entity" includes any governmental entity created by the legislature
that has a limited purpose or function, that has a defined or
restricted geographic territory, and that is authorized by law to
impose a local sales and use tax the imposition, computation,
administration, enforcement, and collection of which is governed by
this chapter.
(b) This section applies only if:
(1) the comptroller intends to reallocate local tax
revenue from a county or local governmental entity to another
county or local governmental entity; and
(2) the amount the comptroller intends to reallocate
as the result of a single instance is at least equal to the lesser
of:
(A) $200,000; or
(B) an amount equal to 10 percent of the revenue
received by the county or local governmental entity under this
chapter during the calendar year preceding the calendar year in
which the reallocation will be made.
(c) This section does not apply to a refund.
(d) The comptroller shall establish administrative
procedures for the examination of amended tax reports filed by
taxpayers under Section 151.4065 that result in a reallocation
amount described by Subsection (b).
(e) If, subject to the criteria provided by this section,
the comptroller concludes after an examination of taxpayer records
that tax revenue collected by the comptroller has been sent
incorrectly to a county or local governmental entity under Section
323.502, the comptroller shall send to that county or local
governmental entity written notice that the comptroller intends to
reallocate the revenue to another county or local governmental
entity.
(f) The notice must include the following information
concerning the pending reallocation, regardless of whether the
information is confidential under state law, including Sections
111.006 and 151.027:
(1) the identity of the taxpayer;
(2) the reporting periods involved in the pending
reallocation;
(3) the amount of the pending reallocation; and
(4) a summary of the reason for the pending
reallocation.
(g) The provision of confidential information to a county or
local governmental entity under this section does not affect the
confidential nature of the information. A county or local
governmental entity 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.
(h) A county or local governmental entity that receives a
notice under this section may request a review of the pending
reallocation by submitting to the comptroller a written request for
an independent audit review on the issue of whether the original
allocation of the revenue was incorrect. The county or local
governmental entity must submit the request not later than the 30th
day after the date the county or local governmental entity receives
the notice under this section.
(i) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request for an
independent audit review under Subsection (h), the comptroller
shall conduct an independent audit review on whether the original
allocation of the revenue was incorrect.
(j) The comptroller shall notify each affected taxpayer and
affected county or local governmental entity of the independent
audit review. The affected taxpayer and affected county or local
governmental entity may participate in the review.
(k) After the conclusion of the review, the comptroller
shall notify each affected county and local governmental entity in
writing whether the reallocation will occur.
SECTION 5. This Act takes effect January 1, 2012.