Texas House Bill HB1871

Texas 2015 - 84th Regular

Caption

Relating to the duty of the comptroller to report sales and use tax information to certain taxing entities.

Impact

The amendments proposed in HB 1871 directly impact the existing tax code, specifically Section 321.302 of the Tax Code, which governs tax reporting requirements. By requiring the Comptroller to issue quarterly reports on delinquent taxpayers and adding provisions for municipalities requesting further information, the bill strengthens local governance capabilities in tax collection. It provides municipalities with more information that could facilitate better collection of taxes and enhance local revenue streams, which are crucial for municipal services.

Summary

House Bill 1871 aims to enhance the transparency and effectiveness of tax collection at the municipal level by mandating the State Comptroller to provide detailed sales and use tax information to specific taxing entities. This includes additional reporting requirements for businesses that have not paid their taxes in full, thereby ensuring municipalities have access to timely information about delinquent tax accounts. The bill seeks to improve the mechanisms of tax enforcement and collection by laying out clear steps for municipalities to report and follow up on unpaid taxes.

Sentiment

Overall, the sentiment around HB 1871 appears to be positive among municipal leaders and legislators who prioritize local tax enforcement. Supporters contend that the bill will aid in responsible fiscal management at the municipal level, helping to identify taxpayers who may be evading their obligations. However, there may be concerns regarding the feasibility of the reporting requirements and the associated administrative burdens on both the Comptroller's office and municipalities.

Contention

While HB 1871 is generally supported for its pro-transparency measures, contention may arise regarding the implications of municipalities' ability to report and collect taxes. There could be discussions about the administrative capacity of local governments to handle the increased data and reporting mandates proposed by the bill. Additionally, the effectiveness of these measures in actually increasing tax compliance and revenue collection may also be scrutinized, raising questions about whether the benefits will outweigh the costs involved.