83R2551 ADM-F
By: Bohac H.B. No. 1724
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. Sections 351.004(a) and (b), Tax Code, are
amended 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) 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.]
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 at the rate provided by Section
111.060(b) on the unpaid amount.
(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
Subsection (d-1) to read as follows:
(d-1) A county must bring suit under this section not later
than the fourth anniversary of the date the tax becomes due.
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.