Texas 2021 - 87th Regular

Texas Senate Bill SB902

Caption

Relating to the period during which a purchaser's successor liability for taxes owed by the seller of a business may be enforced.

Impact

The enactment of SB902 will have significant implications for how tax liabilities are managed during business transactions in Texas. By limiting the enforcement period, the bill seeks to provide clarity and predictability for purchasers, potentially reducing the risk and uncertainty associated with acquiring businesses that have outstanding tax obligations. This change is expected to encourage business acquisitions, as it provides a clear timeframe within which purchasers need to be aware of any tax liabilities.

Summary

Senate Bill 902 aims to clarify the period during which a purchaser's successor liability for taxes owed by the seller of a business can be enforced. The bill amends Section 111.020 of the Texas Tax Code by adding a new provision that establishes a three-year limitation period for enforcing such obligations. Specifically, it states that the liability cannot be enforced after three years from the events outlined in the existing subsection related to tax liabilities.

Contention

While the bill is anticipated to be beneficial for many business purchasers, it may also raise concerns among tax authorities and creditors who may feel that the three-year limitation unfairly restricts their ability to collect owed taxes. Critics may argue that this could potentially lead to a lapse in tax revenue recovery for the state if purchasers are not held accountable beyond this period. Therefore, while the bill aims to streamline processes for businesses, it could be controversial regarding its implications for tax enforcement mechanisms.

Companion Bills

No companion bills found.

Previously Filed As

TX HB356

Relating to the civil liability of certain businesses in connection with allowing concealed handguns on the business premises.

TX SB1688

Relating to requirements for a qualified business participating in the enterprise zone program during a certain period.

TX HB317

Relating to the days and hours during which the polls are open for early voting by personal appearance.

TX HB1273

Relating to the days and hours during which the polls are open for early voting by personal appearance.

TX HB2001

Relating to the days and hours during which the polls are open for early voting by personal appearance.

TX HB4090

Relating to the use of revenue attributable to the imposition of a hotel occupancy tax by certain counties for certain venue projects and the period for which certain hotel occupancy taxes may be imposed.

TX HB2092

Relating to the period during which an order for emergency protection remains in effect.

TX HB347

Relating to law enforcement agency policies regarding the placement of a child taken into possession by a peace officer during the arrest of a person.

TX HB3573

Relating to modernizing the regulation of money services businesses.

TX HB4268

Relating to the period during which an employee may file a claim for unpaid wages with the Texas Workforce Commission.

Similar Bills

No similar bills found.