S.B. No. 903
AN ACT
relating to suits for tax refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 111, Tax Code, is amended
by adding Section 111.106 to read as follows:
Sec. 111.106. TAX REFUND: NOTICE OF INTENT TO BYPASS
HEARING. (a) A person claiming a refund under Section 111.104 may
file with the comptroller a notice of intent to bypass the hearing
under Section 111.105. The notice of intent must:
(1) be filed on or before the 60th day after the date
the comptroller issues a letter denying the claim for refund;
(2) be in writing;
(3) assert the material facts and each specific legal
basis on which a refund is claimed; and
(4) specify the amount of the refund claimed.
(b) A person who files a notice of intent under Subsection
(a) may bypass the hearing under Section 111.105 and bring a suit
under Subchapter D, Chapter 112, if:
(1) the person participated in a conference under
Subsection (c), in which case the suit must be filed on or before
the 60th day after the date the conference concludes or a later date
agreed to by the comptroller; or
(2) the comptroller does not provide notice in the
time required by Subsection (d) that a conference is required, in
which case the suit must be filed on or before the 90th day after the
date the notice of intent was filed.
(c) The comptroller may require a conference between a
person who files a notice of intent under Subsection (a) and a
designated officer or employee of the comptroller to clarify any
fact or legal issue in dispute regarding the refund claim and to
discuss the availability of additional documentation that may
assist in resolving outstanding issues regarding the claim. The
person who filed the notice of intent may amend a material fact or
legal basis described by Subsection (a)(3) following the conference
if the comptroller agrees in writing to the amendment.
(d) If the comptroller requires a conference under
Subsection (c), the comptroller shall notify the person of the
conference requirement not later than the 30th day after the date
the notice of intent under Subsection (a) was filed. The notice of
the conference requirement must be in writing and include a date and
time for the conference. The conference date provided in the notice
must be no later than the 90th day after the date the notice of
intent was filed.
(e) The person who filed the notice of intent under
Subsection (a) may request to reschedule the conference date
provided in the notice under Subsection (d). The comptroller shall
make a good faith effort to accommodate the request. If the
comptroller and the person who filed the notice of intent do not
agree on or before the 90th day after the date the notice of intent
was filed to a rescheduled date for the conference, the person may
rescind the notice of intent on or before the 120th day after the
date the notice of intent was filed and request a hearing under
Section 111.105.
(f) Except as provided by Subsection (e), a person who files
a notice of intent under Subsection (a) waives the person's right to
a hearing under Section 111.105.
SECTION 2. Sections 112.151(a), (c), and (d), Tax Code, are
amended to read as follows:
(a) A person may sue the comptroller to recover an amount of
tax, penalty, or interest that has been the subject of a tax refund
claim if the person [has]:
(1) has filed a tax refund claim under Section 111.104
[of this code];
(2) either:
(A) has filed, as provided by Section 111.105 [of
this code], a motion for rehearing that has been denied by the
comptroller; or
(B) is authorized to bring the suit under Section
111.106(b); and
(3) has paid any additional tax found due in a jeopardy
or deficiency determination that applies to the tax liability
period covered in the tax refund claim.
(c) A person who satisfies the requirement of Subsection
(a)(2)(A) must file the [The] suit [must be filed] before the
expiration of 60 [30] days after the issue date of the denial of the
motion for rehearing or it is barred. A person who satisfies the
requirement of Subsection (a)(2)(B) must file the suit during the
time provided by Section 111.106(b) or it is barred.
(d) The amount of the refund sought must be set out in the
original petition. A copy of the motion for rehearing filed under
Section 111.105 or the notice of intent filed under Section
111.106(a), as applicable, [of this code] must be attached to the
original petition filed with the court and to the copies of the
original petition served on the comptroller and the attorney
general.
SECTION 3. Section 112.152, Tax Code, is amended to read as
follows:
Sec. 112.152. ISSUES IN SUIT. (a) The [grounds of error
contained in the motion for rehearing are the] only issues that may
be raised in a suit under this subchapter are, as applicable, the:
(1) grounds of error contained in the motion for
rehearing; or
(2) material facts and legal bases contained in the
notice of intent filed under Section 111.106(a).
(b) The suit applies only to a tax liability period
considered in the comptroller's decision or covered by the notice
of intent filed under Section 111.106, as applicable.
SECTION 4. This Act applies to a claim for a refund that is
pending or filed on or after the effective date of this Act, without
regard to whether the taxes that are the subject of the claim were
due before, on, or after that date.
SECTION 5. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 903 passed the Senate on
April 19, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 903 passed the House on
May 20, 2021, by the following vote: Yeas 146, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor