Texas 2015 - 84th Regular

Texas House Bill HB2294 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R13171 T
2	2	By: Bohac H.B. No. 2294
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the audit, assessment, and collection of sales and use
8	8	tax on general aviation aircraft under the Texas Tax Code.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 101, Tax Code, is amended by adding
11	11	subsection 101.003(14) to read as follows:
12	12	(14) "General Aviation Aircraft" means any aircraft
13	13	other than those operated by scheduled commercial airlines under
14	14	Part 121 of the Federal Aviation Regulations or aircraft owned by a
15	15	governmental entity.
16	16	SECTION 2. Subchapter A, Chapter 111, Section 111.002, Tax
17	17	Code, is amended by adding subsection (a-1) to read as follows:
18	18	(a-1) Deadlines for correspondence, production of documents
19	19	or other action demanded of a taxpayer during an audit that would
20	20	have the effect of waiving the taxpayer's right to protest an audit
21	21	determination if the taxpayer fails to meet the deadline shall be
22	22	promulgated by rule pursuant to Chapter 2001, Government Code. A
23	23	deadline promulgated by rule as provided by this subsection shall
24	24	use the date that the taxpayer receives the demand from the
25	25	comptroller as the beginning date in computing the deadline period.
26	26	SECTION 3. Section 151.328, Subchapter H, Chapter 151, Tax
27	27	Code is amended by adding subsections (i), (j), (k), (l), (m), (n),
28	28	and (o) to read as follows:
29	29	(i) Sales and use tax exemption certificates promulgated by
30	30	the comptroller shall be accepted by the comptroller as prima facie
31	31	evidence that the described transaction qualifies for the
32	32	corresponding sales or use tax exemption as provided by the Tax
33	33	Code, unless the information provided on the certificate by the
34	34	taxpayer demonstrates that the transaction does not qualify for the
35	35	corresponding sales or use tax exemption. The comptroller shall
36	36	not request documents or other information beyond that which is
37	37	necessary to determine whether the information provided on the
38	38	certificate is factually incorrect in a manner that disqualifies
39	39	the transaction from the requested exemption.
40	40	(j) The comptroller shall complete any audit related to a
41	41	request for exemption from sales or use tax related to general
42	42	aviation aircraft no later than 180 days from the date of the
43	43	purchase, sale or lease of an aircraft which is the subject of the
44	44	audit.
45	45	(k) The comptroller shall not treat as precedential or
46	46	otherwise base audit determinations on unpublished
47	47	interpretations, State Office of Administrative Hearings opinions,
48	48	or comptroller opinions including, but not limited to, those
49	49	published in the State Automated Tax Research system.
50	50	(l) Under this section the term "lease" means a written
51	51	contract between a lessor and lessee transferring operational
52	52	control, as that term is defined in the Federal Aviation
53	53	Regulations, of an aircraft from lessor to lessee in exchange for
54	54	consideration paid by the lessee to the lessor which both lessor and
55	55	lessee agrees to, and which otherwise meets the requirements for an
56	56	aircraft lease described in the portion of the Federal Aviation
57	57	Regulations applicable to the operation of the aircraft in
58	58	question. "Operational control" with respect to a flight, means
59	59	the exercise of authority over initiating, conducting or
60	60	terminating a flight.
61	61	(m) Notwithstanding any other provision of the Tax Code, a
62	62	person who contests a sales or use tax audit determination related
63	63	to a general aviation aircraft transaction may exhaust all
64	64	administrative and judicial remedies before paying the contested
65	65	tax.
66	66	(n) Penalties and interest shall be tolled during the
67	67	administrative and judicial appeal of comptroller sales or use tax
68	68	audit determinations.
69	69	(o) A person who prevails in a contest regarding a
70	70	comptroller sales or use tax audit determination related to general
71	71	aviation aircraft is entitled to reasonable and necessary attorney
72	72	fees upon a finding by the State Office of Administrative Hearings
73	73	or a district court that the comptroller's audit determination was
74	74	arbitrary and capricious.
75	75	SECTION 4. This Act takes effect September 1, 2015.