88R4487 BEF-F
By: Raymond H.B. No. 2525
A BILL TO BE ENTITLED
AN ACT
relating to certain tax and fee collection procedures and taxpayer
suits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 111.0041, Tax Code, is
amended to read as follows:
Sec. 111.0041. RECORDS[; BURDEN TO PRODUCE AND SUBSTANTIATE
CLAIMS].
SECTION 2. Section 111.0041(b), Tax Code, is amended to
read as follows:
(b) A taxpayer is required to keep records [, as provided by
Subsection (c) with respect to the taxpayer's claim,] open for
inspection under Subsection (a) for more than four years throughout
any period when:
(1) any tax, penalty, or interest may be assessed,
collected, or refunded by the comptroller; or
(2) an administrative hearing is pending before the
comptroller, or a judicial proceeding is pending, to determine the
amount of the tax, penalty, or interest that is to be assessed,
collected, or refunded.
SECTION 3. Section 111.008(a), Tax Code, is amended to read
as follows:
(a) If the comptroller is not satisfied with a tax report,
[or] the amount of the tax required to be paid to the state by a
person, or the amount of an overpayment of tax identified in a tax
report or an audit, including a managed audit, the comptroller may
compute and determine the amount of tax to be paid or the amount to
be credited or refunded from information contained in the report or
from any other information available to the comptroller.
SECTION 4. Section 111.009, Tax Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A petition for redetermination must be filed before the
expiration of 60 days after the date the notice of determination is
issued or the redetermination is barred.
(b-1) If a petition for redetermination is not filed before
the expiration of the period provided by Subsection (b) and a suit
is not filed before the expiration of the period provided by Section
112.251 [this subsection], the determination is final on the
expiration of the later of those periods [period].
SECTION 5. Section 111.104(c), Tax Code, is amended to read
as follows:
(c) A claim for a refund must:
(1) be written;
(2) state [fully and in detail] each reason or ground
on which the claim is founded; and
(3) be filed before the expiration of the applicable
limitation period as provided by this code or before the expiration
of six months after a jeopardy or deficiency determination becomes
final, whichever period expires later.
SECTION 6. Sections 112.051(a) and (b), Tax Code, are
amended to read as follows:
(a) If a person [who is required to pay a tax imposed by this
title or collected by the comptroller under any law, including a
local tax collected by the comptroller,] contends that a [the] tax
imposed by this title or collected by the comptroller under any law,
including a local tax collected by the comptroller, is unlawful,
[or] that the public official charged with the duty of collecting
the tax may not legally demand or collect the tax, or that an order,
rule, or policy unlawfully or erroneously establishes or implies an
obligation to pay or collect the tax, the person shall pay the
amount [claimed by the state], and if the person intends to bring
suit under this subchapter, the person must submit with the payment
a protest.
(b) The protest must be in writing and must state [fully and
in detail] each reason or ground for recovering the payment.
SECTION 7. Section 112.052(a), Tax Code, is amended to read
as follows:
(a) A person may bring suit against the state to recover a
tax that [required to be paid to the state if] the person has first
paid [the tax] under protest as required by Section 112.051.
SECTION 8. Chapter 112, Tax Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. SUIT AFTER DETERMINATION
Sec. 112.251. SUIT TO CHALLENGE DETERMINATION. (a) A
person may sue the comptroller to challenge the amount of an
underpayment or overpayment of tax, penalty, or interest that has
been the subject of a jeopardy or deficiency determination.
(b) The suit must be brought against both the comptroller
and the attorney general and must be filed in a district court.
(c) Except as provided by Subsection (d), the suit must be
filed not later than the 60th day after the issue date of the
determination or it is barred.
(d) If the person filed a petition for redetermination under
Section 111.009, the suit must be filed not later than the 60th day
after the issue date of the denial of the motion for rehearing or it
is barred.
Sec. 112.252. APPLICABLE PERIOD. The suit applies only to a
tax liability period that is the subject of the determination.
Sec. 112.253. COLLECTION ACTIONS ENJOINED. After the
comptroller has been timely served in a suit that complies with this
subchapter, the comptroller and the attorney general are enjoined
from collecting disputed amounts from the person bringing the suit
during the pendency of the suit.
Sec. 112.254. ATTORNEY GENERAL TO REPRESENT COMPTROLLER.
The attorney general shall represent the comptroller in a suit
under this subchapter.
Sec. 112.255. TRIAL DE NOVO. In a suit under this
subchapter, the issues shall be tried de novo as are other civil
cases.
Sec. 112.256. JUDGMENT. (a) The amount of a judgment for
the plaintiff shall be credited against any tax, penalty, or
interest imposed by this title and due from the plaintiff.
(b) The remainder of the amount of a judgment not credited
to a tax, penalty, or interest due shall be refunded to the
plaintiff.
(c) The plaintiff is entitled to interest on the amount of
tax included in a judgment for the plaintiff equal to the amount of
interest that would be due if the tax had been deposited in the
suspense account of the comptroller. The interest accrues
beginning from the date that the tax was paid until:
(1) the date that the amount is credited against the
plaintiff's tax liability; or
(2) a date determined by the comptroller that is not
sooner than 10 days before the actual date on which a refund warrant
is issued.
SECTION 9. The following provisions of the Tax Code are
repealed:
(1) Sections 111.0041(c) and (d);
(2) Section 111.105(e);
(3) Section 112.003;
(4) Section 112.052(d);
(5) Section 112.151(f); and
(6) Subchapter E, Chapter 112.
SECTION 10. The repeal by this Act of Subchapter E, Chapter
112, Tax Code, does not apply to a suit brought under that
subchapter before the effective date of this Act. That suit is
governed by the law as it existed immediately before the effective
date of this Act, and the former law is continued in effect for that
purpose.
SECTION 11. This Act applies to a claim for refund, a
determination, or an administrative proceeding that is pending or
in progress on or after the effective date of this Act, without
regard to whether the taxes that are the subject of the claim,
determination, or proceeding were due before, on, or after that
date.
SECTION 12. This Act takes effect September 1, 2023.