| 1 | 1 | | 87R2581 BEF-D |
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| 2 | 2 | | By: Herrero H.B. No. 4032 |
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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 review by local governmental entities of certain |
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| 8 | 8 | | sales and use tax audit reports and audit working papers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 321.510(c), (d), (e), and (g), Tax |
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| 11 | 11 | | Code, are amended to read as follows: |
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| 12 | 12 | | (c) Subject to the criteria provided by this section, a |
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| 13 | 13 | | municipality or local governmental entity may request a review of |
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| 14 | 14 | | all available sales tax returns, [and] reports, audit reports, and |
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| 15 | 15 | | audit working papers in the comptroller's possession filed by not |
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| 16 | 16 | | more than five individual taxpayers doing business in the |
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| 17 | 17 | | municipality or local governmental entity that are included and |
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| 18 | 18 | | identified by the municipality or local governmental entity from |
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| 19 | 19 | | the information received from the comptroller under Section |
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| 20 | 20 | | 321.3022 and that relate to a reallocation or refund in an amount |
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| 21 | 21 | | described by Subsection (b). |
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| 22 | 22 | | (d) The comptroller shall provide the returns, [and] |
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| 23 | 23 | | reports, audit reports, and audit working papers requested under |
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| 24 | 24 | | Subsection (c) for review regardless of whether the information [in |
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| 25 | 25 | | the returns or reports] is confidential under state law, including |
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| 26 | 26 | | Sections 111.006 and 151.027. |
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| 27 | 27 | | (e) The provision of confidential information to a |
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| 28 | 28 | | municipality or local governmental entity under this section does |
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| 29 | 29 | | not affect the confidential nature of the information in the |
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| 30 | 30 | | returns, [or] reports, audit reports, or audit working papers. A |
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| 31 | 31 | | municipality or local governmental entity shall use the information |
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| 32 | 32 | | only in a manner that maintains the confidential nature of the |
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| 33 | 33 | | information and may not disclose or release the information to the |
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| 34 | 34 | | public. |
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| 35 | 35 | | (g) Not earlier than the 30th day or later than the 90th day |
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| 36 | 36 | | after the date the comptroller receives a request under Subsection |
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| 37 | 37 | | (c), the comptroller shall provide the requested returns, [and] |
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| 38 | 38 | | reports, audit reports, and audit working papers to the requesting |
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| 39 | 39 | | municipality or local governmental entity for review. |
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| 40 | 40 | | SECTION 2. The changes in law made by this Act apply only to |
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| 41 | 41 | | a request under Section 321.510(f), Tax Code, submitted on or after |
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| 42 | 42 | | the effective date of this Act. A request submitted before that date |
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| 43 | 43 | | is governed by the law in effect when the request was submitted, and |
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| 44 | 44 | | the former law is continued in effect for that purpose. |
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| 45 | 45 | | SECTION 3. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2021. |
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