| 1 | 1 | | 87R5082 RDS-F |
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| 2 | 2 | | By: Krause H.B. No. 1454 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the rate of interest on certain tax refunds. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 111.064, Tax Code, is amended by |
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| 10 | 10 | | amending Subsections (a), (c), and (c-1) and adding Subsection |
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| 11 | 11 | | (a-1) to read as follows: |
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| 12 | 12 | | (a) Except as otherwise provided by this section, for a |
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| 13 | 13 | | refund under this chapter granted for a report period due on or |
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| 14 | 14 | | after September 1, 2027, interest is at the rate [that is the lesser |
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| 15 | 15 | | of the annual rate of interest earned on deposits in the state |
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| 16 | 16 | | treasury during December of the previous calendar year, as |
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| 17 | 17 | | determined by the comptroller, or the rate] set in Section |
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| 18 | 18 | | 111.060[,] and accrues on the amount found to be erroneously paid |
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| 19 | 19 | | for a period: |
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| 20 | 20 | | (1) beginning on the later of 60 days after the date of |
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| 21 | 21 | | payment or the due date of the tax report; and |
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| 22 | 22 | | (2) ending on, as determined by the comptroller, |
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| 23 | 23 | | either the date of allowance of credit on account of the |
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| 24 | 24 | | comptroller's final decision or audit or a date not more than 10 |
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| 25 | 25 | | days before the date of the refund warrant. |
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| 26 | 26 | | (a-1) A refund under this chapter granted for a report |
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| 27 | 27 | | period due on or after September 1, 2023, but before September 1, |
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| 28 | 28 | | 2025, accrues interest at the rate of the prime rate plus 0.5 |
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| 29 | 29 | | percent. A refund under this chapter granted for a report period |
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| 30 | 30 | | due on or after September 1, 2025, but before September 1, 2027, |
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| 31 | 31 | | accrues interest at the rate of the prime rate plus 0.75 percent. |
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| 32 | 32 | | Interest accrues under this subsection on the amount found to be |
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| 33 | 33 | | erroneously paid as described by Subsection (a). |
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| 34 | 34 | | (c) A [For a] refund under this chapter [claimed before |
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| 35 | 35 | | September 1, 2005, and] granted for a report period due on or after |
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| 36 | 36 | | January 1, 2000, but before September 1, 2023, accrues [the rate of] |
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| 37 | 37 | | interest as follows: |
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| 38 | 38 | | (1) if the refund is claimed before September 1, 2005, |
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| 39 | 39 | | at [is] the rate set in Section 111.060; and |
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| 40 | 40 | | (2) if the refund is claimed on or after September 1, |
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| 41 | 41 | | 2005, at the rate that is the lesser of: |
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| 42 | 42 | | (A) the rate set in Section 111.060; or |
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| 43 | 43 | | (B) the annual rate of interest earned on |
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| 44 | 44 | | deposits in the state treasury during December of the previous |
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| 45 | 45 | | calendar year, as determined by the comptroller. |
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| 46 | 46 | | (c-1) A refund under this chapter granted [, without regard |
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| 47 | 47 | | to the date claimed,] for a report period due before January 1, |
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| 48 | 48 | | 2000, does not accrue interest. |
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| 49 | 49 | | SECTION 2. This Act takes effect September 1, 2021. |
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