Texas Senate Bill SB778

Texas 2021 - 87th Regular

Caption

Relating to the review by local governmental entities of certain sales and use tax audit reports and audit working papers.

Impact

The passage of SB778 will change existing practices related to the scrutiny of tax audits at the local level. Local governments will gain increased access to sensitive information, which should help them ensure compliance and accurate collection of sales taxes. This law could significantly affect how local governments manage their financial oversight by making pertinent information more accessible, allowing them to act on potential discrepancies or concerns regarding tax assessments and refunds.

Summary

Senate Bill 778 addresses the process through which local governmental entities in Texas may review sales and use tax audit reports and working papers held by the comptroller. With this bill, municipalities or local entities have the authority to request a review of audit-related documents for up to five individual taxpayers within their jurisdiction. This capability is crucial for local entities as it enhances their ability to oversee and manage local tax revenue effectively.

Contention

Notably, the bill includes provisions that emphasize the confidentiality of the information reviewed. Even though local entities can access these sensitive documents, the law mandates that they maintain the confidentiality of this information. There are potential concerns about how well local entities will handle such confidential data and whether the transparency associated with public finance will be sufficiently maintained. Critics may argue about the balance between local oversight and taxpayer privacy, which could lead to discussions around the adequacy of existing protections for individual taxpayers' confidential information.