Texas Senate Bill SB1527

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 proposed bill gives municipalities greater visibility into tax compliance and collections by businesses, potentially increasing local revenues. It allows local governments to understand tax delinquency better, which can assist them in pursuing collection actions. The amendment also introduces provisions for municipalities to challenge the comptroller's determinations regarding tax obligations, thereby enabling local governments to have a more active role in tax enforcement. By improving reporting processes, the bill aims to strengthen local taxation efforts in Texas.

Summary

SB1527 addresses the responsibilities of the Texas comptroller related to the reporting of sales and use tax information to municipalities. This act proposes amendments to the Tax Code that require the comptroller to provide detailed reports to local entities upon their request. These reports must include data on businesses that have failed to pay taxes, as well as measures taken by the comptroller to collect those delinquencies. The enhanced transparency is aimed at facilitating local government's tax collection efforts and ensuring compliance among businesses operating within their jurisdictions.

Contention

While the bill seems to support local government revenue efforts, there could be contention regarding the administrative responsibilities placed on the comptroller and the potential fees charged to municipalities for information dissemination. Some stakeholders may view the additional reporting requirements as burdensome, particularly if it involves considerable resources to fulfill these new obligations. There may also be debates about whether this bill truly empowers local governments or simply adds an extra layer of state oversight that could hinder their operational effectiveness.