Texas 2021 - 87th Regular

Texas Senate Bill SB769 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Huffman S.B. No. 769
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to taxpayers' suits.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 403.202(a), Government Code, is amended
9	9	to read as follows:
10	10	(a) If a person who is required to pay to any department of
11	11	the state government an occupation, excise, gross receipts,
12	12	franchise, license, or privilege tax or fee, [other than a tax or
13	13	fee to which Subchapter B, Chapter 112, Tax Code, applies] or
14	14	another [a] tax or [other] amount imposed under Subtitle A, Title 4,
15	15	Labor Code, contends that the tax or fee is unlawful or that the
16	16	department may not legally demand or collect the tax or fee, the
17	17	person shall pay the amount claimed by the state, and if the person
18	18	intends to bring suit under this subchapter, the person must submit
19	19	with the payment a protest.
20	20	SECTION 2. Subchapter J, Chapter 403, Government Code, is
21	21	amended by adding Section 403.222 to read as follows:
22	22	Sec. 403.222. APPLICABILITY. This subchapter does not
23	23	apply to a suit under Chapter 112, Tax Code.
24	24	SECTION 3. Section 111.207(a), Tax Code, is amended to read
25	25	as follows:
26	26	(a) In determining the expiration date for a period when a
27	27	tax imposed by this title may be assessed, collected, or refunded,
28	28	the following periods are not considered:
29	29	(1) [the period following the date of a tax payment
30	30	made under protest, but only if a lawsuit is timely filed in
31	31	accordance with Chapter 112;
32	32	[(2)] the period during which a judicial proceeding is
33	33	pending in a court of competent jurisdiction to determine the
34	34	amount of the tax due;
35	35	(2) [(3)] the period during which an administrative
36	36	redetermination or refund hearing is pending before the
37	37	comptroller; and
38	38	(3) [(4)] the period during which an indictment or
39	39	information is pending for a felony offense related to the
40	40	administration of the Tax Code against any taxpayer or any person
41	41	personally liable or potentially personally liable for the payment
42	42	of the tax under Section 111.0611.
43	43	SECTION 4. Subchapter A, Chapter 112, Tax Code, is amended
44	44	by adding Section 112.003 to read as follows:
45	45	Sec. 112.003. ATTORNEY FEES. Except for a sanction under
46	46	Chapter 10, Civil Practice and Remedies Code, or the Texas Rules of
47	47	Civil Procedure, attorney's fees may not be awarded in a suit
48	48	seeking legal or equitable relief against the state, a state
49	49	agency, or an officer of the state relating to the applicability,
50	50	assessment, collection, constitutionality, or amount of a tax, fee,
51	51	or penalty imposed by this title or Title 3 or collected by the
52	52	comptroller under any other law.
53	53	SECTION 5. The heading to Subchapter B, Chapter 112, Tax
54	54	Code, is amended to read as follows:
55	55	SUBCHAPTER B. SUIT AFTER REDETERMINATION [PROTEST PAYMENT]
56	56	SECTION 6. Subchapter B, Chapter 112, Tax Code, is amended
57	57	by adding Sections 112.061, 112.062, 112.063, 112.064, 112.065,
58	58	112.066, 112.067, and 112.068 to read as follows:
59	59	Sec. 112.061. SUIT AFTER REDETERMINATION. (a) A person may
60	60	sue the comptroller to dispute an amount of tax, penalty, or
61	61	interest assessed in a deficiency redetermination or jeopardy
62	62	redetermination under Chapter 111 if the person has:
63	63	(1) filed a request for redetermination under Chapter
64	64	111;
65	65	(2) obtained a redetermination under Chapter 111 that
66	66	includes a finding by the comptroller of the disputed and
67	67	undisputed amounts; and
68	68	(3) filed a motion for rehearing of the
69	69	redetermination that complies with Chapter 2001, Government Code,
70	70	and that states the specific grounds of error and the disputed
71	71	amounts associated with the grounds of error.
72	72	(b) A person bringing a suit under this subchapter shall
73	73	pay, as provided by Chapter 111, the redetermination amounts that
74	74	are not disputed in the motion for rehearing. The failure to pay an
75	75	undisputed amount does not affect the jurisdiction of a court to
76	76	consider a suit that complies with Subsection (a).
77	77	(c) A person bringing a suit under this subchapter may pay
78	78	the disputed amounts as provided by Chapter 111. A disputed amount
79	79	that is not paid as provided by Chapter 111 and that is determined
80	80	to be due in a final judgment accrues penalties and interest as
81	81	provided by Chapter 111. After the comptroller has been timely
82	82	served in a suit that complies with this subchapter, the
83	83	comptroller and the attorney general are enjoined from collecting
84	84	disputed amounts during the pendency of the suit but are not
85	85	enjoined from asserting tax liens. Damages may be awarded under
86	86	Chapter 65, Civil Practice and Remedies Code, if the court
87	87	determines that all or part of the enjoined collection amounts were
88	88	disputed solely for delay.
89	89	(d) A suit under this subchapter must be brought against
90	90	both the comptroller and the attorney general.
91	91	(e) A suit under this subchapter must be filed before the
92	92	expiration of 60 days after the issue date of the denial of the
93	93	motion for rehearing or it is barred.
94	94	(f) The disputed and undisputed amounts of the
95	95	redetermination must be set out in the original petition. A copy of
96	96	the motion for rehearing must be attached to the original petition
97	97	filed with the court and to the copies of the original petition
98	98	served on the comptroller and the attorney general.
99	99	(g) A person may not intervene in a suit under this
100	100	subchapter.
101	101	Sec. 112.062. RECORDS. A person shall produce, in
102	102	connection with a suit under this subchapter, contemporaneous
103	103	records and supporting documentation appropriate to the tax or fee
104	104	for the transactions in question to substantiate and enable
105	105	verification of the person's claim relating to the amount of the
106	106	tax, penalty, or interest that has been assessed or collected, as
107	107	required by Section 111.0041.
108	108	Sec. 112.063. COUNTERCLAIM. (a) The state may bring a
109	109	counterclaim in a suit under this subchapter if:
110	110	(1) the counterclaim relates to taxes or fees imposed
111	111	under the same statute and during the same period as the taxes or
112	112	fees that are the subject of the suit; and
113	113	(2) the counterclaim is filed not later than the 30th
114	114	day before the date set for trial on the merits of the suit.
115	115	(b) The state is not required to make an assessment of the
116	116	taxes or fees subject to the counterclaim under any other statute,
117	117	and the period of limitation applicable to an assessment of the
118	118	taxes or fees does not apply to a counterclaim brought under this
119	119	section.
120	120	Sec. 112.064. ISSUES IN SUIT. (a) The grounds of error
121	121	contained in the motion for rehearing are the only issues that may
122	122	be raised in a suit under this subchapter.
123	123	(b) A suit under this subchapter applies only to a tax
124	124	liability period considered in the comptroller's redetermination.
125	125	Sec. 112.065. ATTORNEY GENERAL TO REPRESENT COMPTROLLER.
126	126	The attorney general shall represent the comptroller in a suit
127	127	under this subchapter.
128	128	Sec. 112.066. TRIAL DE NOVO. In a suit under this
129	129	subchapter, the issues shall be tried de novo as are other civil
130	130	cases.
131	131	Sec. 112.067. JUDGMENT. (a) The amount of a judgment
132	132	refunding disputed taxes, penalties, or interest paid to the
133	133	comptroller shall be credited against any tax, penalty, or interest
134	134	imposed by this title and due from the plaintiff.
135	135	(b) The remainder of the amount of a judgment not credited
136	136	against a tax, penalty, or interest shall be refunded to the
137	137	plaintiff.
138	138	(c) The plaintiff is entitled to interest on the amount of
139	139	tax refunded in a judgment for the plaintiff equal to the amount of
140	140	interest that would be due if the tax had been deposited in the
141	141	suspense account of the comptroller. The interest accrues beginning
142	142	from the date that the tax was paid until:
143	143	(1) the date that the amount is credited against the
144	144	plaintiff's tax liability; or
145	145	(2) a date determined by the comptroller that is not
146	146	sooner than 10 days before the actual date on which a refund warrant
147	147	is issued.
148	148	Sec. 112.068. RES JUDICATA. The rule of res judicata
149	149	applies in a suit under this subchapter only if the issues and the
150	150	tax liability periods in controversy are the same as were decided in
151	151	a previous final judgment entered in a Texas court of record in a
152	152	suit between the same parties.
153	153	SECTION 7. The following provisions are repealed:
154	154	(1) Section 403.212(e), Government Code;
155	155	(2) Sections 112.051, 112.052, 112.053, 112.054,
156	156	112.055, 112.056, 112.057, 112.058, 112.059, and 112.060, Tax Code;
157	157	and
158	158	(3) Subchapter C, Chapter 112, Tax Code.
159	159	SECTION 8. The changes in law made by this Act apply only to
160	160	a suit to dispute an amount of tax, penalty, or interest that
161	161	becomes due and payable on or after the effective date of this Act.
162	162	A suit to dispute an amount of tax, penalty, or interest that became
163	163	due and payable before the effective date of this Act is governed by
164	164	the law as it existed immediately before the effective date of this
165	165	Act, and the former law is continued in effect for that purpose.
166	166	SECTION 9. This Act takes effect September 1, 2021.