Relating to disclosure by the comptroller to the purchaser of a business of the amount of tax due.
Impact
The enactment of SB873 will modify the existing provisions of the Texas Tax Code, enhancing the legal framework surrounding tax disclosures associated with business sales. By requiring the comptroller to respond to inquiries about tax obligations promptly, it aims to prevent situations where purchasers might unknowingly inherit tax liabilities from previous owners. This could significantly impact compliance and planning for both buyers and sellers, creating a clearer and more equitable landscape for business transactions in Texas.
Summary
Senate Bill 873 introduces important provisions regarding tax disclosure related to business transactions in Texas. Specifically, it allows purchasers of a business to request from the comptroller a certificate indicating the amount of tax due on the business being purchased. This is particularly relevant in fostering transparency during business transactions, ensuring that potential buyers are informed about any tax liabilities before finalizing a purchase. The comptroller is mandated to respond to these requests within a specified timeframe, promoting efficiency and accountability in the tax disclosure process.
Sentiment
The sentiment around SB873 appears to be quite positive, reflecting a consensus on the need for enhanced disclosure and transparency in business transactions. There was substantial support during voting, with no recorded opposition in either the Senate or House. This lack of dissent suggests that stakeholders generally view the bill as a beneficial reform aimed at streamlining business processes and increasing trust in tax-related disclosures.
Contention
While the bill received broad support, some may argue about the potential administrative burden it could impose on the comptroller's office regarding the processing of these requests. However, the overwhelming votes in favor of the bill indicate that the perceived benefits of increased transparency and the protection of buyers outweigh any concerns about administrative efficiency. Overall, the discussion around SB873 reflects a commitment to improving business practices in Texas while safeguarding the interests of new business owners.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.