87R5082 RDS-F
By: Buckingham S.B. No. 498
A BILL TO BE ENTITLED
AN ACT
relating to the rate of interest on certain tax refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.064, Tax Code, is amended by
amending Subsections (a), (c), and (c-1) and adding Subsection
(a-1) to read as follows:
(a) Except as otherwise provided by this section, for a
refund under this chapter granted for a report period due on or
after September 1, 2027, interest is at the rate [that is the lesser
of the annual rate of interest earned on deposits in the state
treasury during December of the previous calendar year, as
determined by the comptroller, or the rate] set in Section
111.060[,] and accrues on the amount found to be erroneously paid
for a period:
(1) beginning on the later of 60 days after the date of
payment or the due date of the tax report; and
(2) ending on, as determined by the comptroller,
either the date of allowance of credit on account of the
comptroller's final decision or audit or a date not more than 10
days before the date of the refund warrant.
(a-1) A refund under this chapter granted for a report
period due on or after September 1, 2023, but before September 1,
2025, accrues interest at the rate of the prime rate plus 0.5
percent. A refund under this chapter granted for a report period
due on or after September 1, 2025, but before September 1, 2027,
accrues interest at the rate of the prime rate plus 0.75 percent.
Interest accrues under this subsection on the amount found to be
erroneously paid as described by Subsection (a).
(c) A [For a] refund under this chapter [claimed before
September 1, 2005, and] granted for a report period due on or after
January 1, 2000, but before September 1, 2023, accrues [the rate of]
interest as follows:
(1) if the refund is claimed before September 1, 2005,
at [is] the rate set in Section 111.060; and
(2) if the refund is claimed on or after September 1,
2005, at the rate that is the lesser of:
(A) the rate set in Section 111.060; or
(B) the annual rate of interest earned on
deposits in the state treasury during December of the previous
calendar year, as determined by the comptroller.
(c-1) A refund under this chapter granted [, without regard
to the date claimed,] for a report period due before January 1,
2000, does not accrue interest.
SECTION 2. This Act takes effect September 1, 2021.