87R3753 BEF-F
By: Perry S.B. No. 296
A BILL TO BE ENTITLED
AN ACT
relating to the date by which a seller must provide resale and
exemption certificates to the comptroller in connection with a
sales and use tax audit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.054(e), Tax Code, is amended to read
as follows:
(e) Properly completed resale or exemption certificates
should be in the possession of the seller at the time the nontaxable
transaction occurs. If the seller is not in possession of these
certificates at or before the exit conference for an audit of the
nontaxable transactions [within 60 days from the date written
notice requiring possession of them is given to the seller by the
comptroller], deductions claimed by the seller that require
delivery of the certificates shall be disallowed. If the seller
delivers the certificates to the comptroller at or before the exit
conference [within the 60-day period], the comptroller may verify
the reason or basis for exemption claimed in the certificates
before allowing any deductions. A deduction may not be granted on
the basis of certificates delivered to the comptroller after the
exit conference [60-day period].
SECTION 2. Section 151.104(d), Tax Code, is amended to read
as follows:
(d) Properly executed resale or exemption certificates
should be in possession of the seller at the time the nontaxable
transaction occurs. If the seller is not in possession of these
certificates at or before the exit conference for an audit of the
nontaxable transactions [within 60 days from the date written
notice requiring possession of them is given to the seller by the
comptroller], deductions claimed by the seller that require
delivery of the certificates shall be disallowed. If the seller
delivers the [acquires] certificates to the comptroller at or
before the exit conference [within the 60-day period], the
comptroller may verify the reason or basis for exemption claimed in
the certificates before allowing any deductions. A deduction may
not be granted on the basis of certificates delivered to the
comptroller [obtained] after the exit conference [60-day period].
SECTION 3. Sections 151.054(e) and 151.104(d), Tax Code, as
amended by this Act, apply to an audit of a seller's sales
transactions that is pending on or commenced on or after the
effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.