By: Bohac (Senate Sponsor - Seliger) H.B. No. 1724
(In the Senate - Received from the House May 6, 2013;
May 8, 2013, read first time and referred to Committee on Economic
Development; May 16, 2013, reported favorably by the following
vote: Yeas 5, Nays 0; May 16, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the statute of limitations on municipal and county
hotel occupancy taxes and interest on delinquent payments of
municipal hotel occupancy taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.004, Tax Code, is amended by
amending Subsections (a) and (b) and adding Subsection (b-1) to
read as follows:
(a) The municipality may bring suit against a person who is
required to collect the tax imposed by this chapter and pay the
collections over to the municipality, and who has failed to file a
tax report or pay the tax when due, to collect the tax not paid or to
enjoin the person from operating a hotel in the municipality until
the tax is paid or the report filed, as applicable, as provided by
the court's order. In addition to the amount of any tax owed under
this chapter, the person is liable to the municipality for:
(1) the municipality's reasonable attorney's fees;
(2) the costs of an audit conducted under Subsection
(a-1)(1), as determined by the municipality using a reasonable
rate, but only if:
(A) the tax has been delinquent for at least two
complete municipal fiscal quarters at the time the audit is
conducted; and
(B) the municipality has not received a
disbursement from the comptroller as provided by Section 156.2513
related to the person's concurrent state tax delinquency described
by Section 351.008; [and]
(3) a penalty equal to 15 percent of the total amount
of the tax owed if the tax has been delinquent for at least one
complete municipal fiscal quarter; and
(4) interest under Section 351.0042.
(b) Except as provided by Subsection (b-1), a municipality
must bring suit under this section not later than the fourth
anniversary of the date the tax becomes due. [Section 16.061, Civil
Practice and Remedies Code, applies to the collection of a tax under
this chapter. A limitation period provided by Title 2 relating to
the time allowed to assess taxes and bring a suit to collect taxes
does not apply to a tax imposed under this chapter or to a suit
brought under this section.]
(b-1) The limitation provided by Subsection (b) does not
apply and a municipality may bring suit under this section at any
time if:
(1) with intent to evade the tax, the person files a
false or fraudulent report with the municipality; or
(2) the person has not filed a report for the tax with
the municipality.
SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
by adding Section 351.0042 to read as follows:
Sec. 351.0042. INTEREST ON DELINQUENT TAX. (a) A person
who fails to pay a tax due under this chapter is liable to the
municipality for interest on the unpaid amount at the greater of the
rate provided by Section 111.060(b) or the rate imposed by the
municipality on January 1, 2013.
(b) Interest under this section accrues from the first day
after the date due until the tax is paid.
SECTION 3. Section 352.004, Tax Code, is amended by adding
Subsections (d-1) and (d-2) to read as follows:
(d-1) Except as provided by Subsection (d-2), a county must
bring suit under this section not later than the fourth anniversary
of the date the tax becomes due.
(d-2) The limitation provided by Subsection (d-1) does not
apply and a county may bring suit under this section at any time if:
(1) with intent to evade the tax, the person files a
false or fraudulent report with the county; or
(2) the person has not filed a report for the tax with
the county.
SECTION 4. 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 5. This Act takes effect September 1, 2013.
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