Texas 2015 - 84th Regular

Texas House Bill HB35 Compare Versions

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1	1	84R11111 CJC-D
2	2	By: Murphy, Clardy H.B. No. 35
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the amount of the discount allowed for prepayment of
8	8	sales and use taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 151.424, Tax Code, is amended by
11	11	amending Subsection (a) and adding Subsections (a-1), (e), and (f)
12	12	to read as follows:
13	13	(a) In addition to the amount permitted to be deducted and
14	14	withheld under Section 151.423, a [A] taxpayer who prepays the
15	15	taxpayer's tax liability on the basis of a reasonable estimate of
16	16	the tax liability for a quarter in which a prepayment is made or for
17	17	a month in which a prepayment is made may deduct and withhold the
18	18	lesser of the following, as determined by the comptroller under
19	19	Subsection (e):
20	20	(1) 1.25 percent of the amount of the prepayment; or
21	21	(2) an annually adjusted percentage of the amount of
22	22	the prepayment that yields an annualized rate of return equal to the
23	23	prime rate as published in The Wall Street Journal on the first
24	24	business day of each calendar year, plus four percent [in addition
25	25	to the amount permitted to be deducted and withheld under Section
26	26	151.423 of this code].
27	27	(a-1) A reasonable estimate of the tax liability under
28	28	Subsection (a) must be at least 90 percent of the tax ultimately due
29	29	or the amount of tax paid in the same quarter, or month, if a monthly
30	30	prepayer, in the last preceding year. Failure to prepay a
31	31	reasonable estimate of the tax will result in the loss of the entire
32	32	prepayment discount.
33	33	(e) Not later than January 5 of each year, the comptroller
34	34	shall:
35	35	(1) determine the percentage of a taxpayer's
36	36	prepayment that may be deducted and withheld under Subsection (a);
37	37	and
38	38	(2) publish the percentage determined under this
39	39	subsection on the comptroller's Internet website.
40	40	(f) The percentage determined under Subsection (e) applies
41	41	to a deduction and withholding from a prepayment of tax liability
42	42	that a taxpayer makes on or after January 15 of the year the
43	43	comptroller makes the determination and before January 15 of the
44	44	succeeding year.
45	45	SECTION 2. The comptroller of public accounts shall make
46	46	the initial determination required by Section 151.424(e), Tax Code,
47	47	as added by this Act, not later than January 5, 2016.
48	48	SECTION 3. Section 151.424, Tax Code, as amended by this
49	49	Act, applies to a prepayment of tax liability made on or after
50	50	January 15, 2016. A prepayment of tax liability made before January
51	51	15, 2016, is governed by the law in effect immediately preceding the
52	52	effective date of this Act, and the former law is continued in
53	53	effect for that purpose.
54	54	SECTION 4. The change in law made by this Act does not
55	55	affect tax liability accruing before the effective date of this
56	56	Act. That liability continues in effect as if this Act had not been
57	57	enacted, and the former law is continued in effect for the
58	58	collection of taxes due and for civil and criminal enforcement of
59	59	the liability for those taxes.
60	60	SECTION 5. This Act takes effect October 1, 2015.