83R6883 CJC-D
By: Murphy H.B. No. 1320
A BILL TO BE ENTITLED
AN ACT
relating to the discount for prepayment of sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.424, Tax Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (a-2) to
read as follows:
(a) A taxpayer who prepays the taxpayer's tax liability on
the basis of a reasonable estimate of the tax liability for a
quarter in which a prepayment is made or for a month in which a
prepayment is made may deduct and withhold:
(1) one [1.25] percent of the amount of the prepayment
if the taxpayer pays the tax quarterly; or
(2) one-half of one percent of the amount of the
prepayment if the taxpayer pays the tax monthly.
(a-1) The amount of the prepayment permitted to be deducted
and withheld under this section is in addition to the amount
permitted to be deducted and withheld under Section 151.423 [of
this code].
(a-2) A reasonable estimate of the tax liability must be at
least 90 percent of the tax ultimately due or the amount of tax paid
in the same quarter, or month, if the taxpayer pays the tax monthly
[a monthly prepayer], in the last preceding year. Failure to prepay
a reasonable estimate of the tax will result in the loss of the
entire prepayment discount.
SECTION 2. The change in law made by this Act applies only
to a prepayment of tax liability made on or after the effective date
of this Act. A prepayment of tax liability made before the effective
date of this Act is governed by the law in effect on the date the
prepayment was made, and the former law is continued in effect for
that purpose.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 4. This Act takes effect September 1, 2013.