Texas 2019 - 86th Regular

Texas House Bill HB1729 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R12714 SRA-D
2		-	By: Murphy, Howard, Springer H.B. No. 1729
3		-	Substitute the following for H.B. No. 1729:
4		-	By: Shaheen C.S.H.B. No. 1729
	1	+	By: Murphy H.B. No. 1729
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to the amount of the discount allowed for prepayment of
10	7		sales and use taxes.
11	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	9		SECTION 1. Section 151.424, Tax Code, is amended by
13	10		amending Subsection (a) and adding Subsections (a-1), (e), and (f)
14	11		to read as follows:
15	12		(a) In addition to the amount permitted to be deducted and
16	13		withheld under Section 151.423, a [A] taxpayer who prepays the
17	14		taxpayer's tax liability on the basis of a reasonable estimate of
18	15		the tax liability for a quarter in which a prepayment is made or for
19	16		a month in which a prepayment is made may deduct and withhold the
20	17		lesser of the following, as determined by the comptroller under
21	18		Subsection (e):
22	19		(1) 1.25 percent of the amount of the prepayment; or
23	20		(2) an annually adjusted percentage of the amount of
24	21		the prepayment that yields an annualized rate of return equal to the
25	22		prime rate as published in The Wall Street Journal on the first
26	23		business day of each calendar year, plus four percent [in addition
27	24		to the amount permitted to be deducted and withheld under Section
28	25		151.423 of this code].
29	26		(a-1) A reasonable estimate of the tax liability under
30	27		Subsection (a) must be at least 90 percent of the tax ultimately due
31	28		or the amount of tax paid in the same quarter, or month, if a monthly
32	29		prepayer, in the last preceding year. Failure to prepay a
33	30		reasonable estimate of the tax will result in the loss of the entire
34	31		prepayment discount.
35	32		(e) Not later than January 5 of each year, the comptroller
36	33		shall:
37	34		(1) determine the percentage of a taxpayer's
38	35		prepayment that may be deducted and withheld under Subsection (a);
39	36		and
40	37		(2) publish the percentage determined under this
41	38		subsection on the comptroller's Internet website.
42	39		(f) The percentage determined under Subsection (e) applies
43	40		to a deduction and withholding from a prepayment of tax liability
44	41		that a taxpayer makes on or after January 15 of the year the
45	42		comptroller makes the determination and before January 15 of the
46	43		succeeding year.
47	44		SECTION 2. The comptroller of public accounts shall make
48	45		the initial determination required by Section 151.424(e), Tax Code,
49	46		as added by this Act, not later than January 5, 2020.
50	47		SECTION 3. Section 151.424, Tax Code, as amended by this
51	48		Act, applies to a prepayment of tax liability made on or after
52	49		January 15, 2020. A prepayment of tax liability made before January
53	50		15, 2020, is governed by the law in effect immediately preceding the
54	51		effective date of this Act, and the former law is continued in
55	52		effect for that purpose.
56	53		SECTION 4. The change in law made by this Act does not
57	54		affect tax liability accruing before the effective date of this
58	55		Act. That liability continues in effect as if this Act had not been
59	56		enacted, and the former law is continued in effect for the
60	57		collection of taxes due and for civil and criminal enforcement of
61	58		the liability for those taxes.
62	59		SECTION 5. This Act takes effect October 1, 2019.