By: Perry S.B. No. 296
(In the Senate - Filed January 7, 2021; March 3, 2021, read
first time and referred to Committee on Finance; April 21, 2021,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 14, Nays 0; April 21, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 296 By: Perry
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, Tax Code, is amended by
amending Subsection (e) and adding Subsection (f) 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 within 90 [60] days from the date written notice
requiring possession of them is given to the seller by the
comptroller or a later date agreed to by the comptroller and the
seller, deductions claimed by the seller that require delivery of
the certificates shall be disallowed. [If the seller delivers the
certificates to the comptroller 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 90-day [60-day] period or, if applicable, the
date agreed to by the comptroller and the seller.
(f) Before allowing a deduction, the comptroller may verify
the reason or basis for exemption claimed in a resale or exemption
certificate delivered to the comptroller during the period provided
by Subsection (e).
SECTION 2. Section 151.104, Tax Code, is amended by
amending Subsection (d) and adding Subsection (e) 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 within 90 [60] days from the date written notice
requiring possession of them is given to the seller by the
comptroller or a later date agreed to by the comptroller and the
seller, deductions claimed by the seller that require delivery of
the certificates shall be disallowed. [If the seller acquires
certificates 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 obtained after the 90-day [60-day] period
or, if applicable, the date agreed to by the comptroller and the
seller.
(e) Before allowing a deduction, the comptroller may verify
the reason or basis for exemption claimed in a resale or exemption
certificate acquired by the seller during the period provided by
Subsection (d).
SECTION 3. Sections 151.054 and 151.104, 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.
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