Texas 2023 - 88th Regular

Texas House Bill HB2525 Compare Versions

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1	1	88R4487 BEF-F
2	2	By: Raymond H.B. No. 2525
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain tax and fee collection procedures and taxpayer
8	8	suits.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 111.0041, Tax Code, is
11	11	amended to read as follows:
12	12	Sec. 111.0041. RECORDS[; BURDEN TO PRODUCE AND SUBSTANTIATE
13	13	CLAIMS].
14	14	SECTION 2. Section 111.0041(b), Tax Code, is amended to
15	15	read as follows:
16	16	(b) A taxpayer is required to keep records [, as provided by
17	17	Subsection (c) with respect to the taxpayer's claim,] open for
18	18	inspection under Subsection (a) for more than four years throughout
19	19	any period when:
20	20	(1) any tax, penalty, or interest may be assessed,
21	21	collected, or refunded by the comptroller; or
22	22	(2) an administrative hearing is pending before the
23	23	comptroller, or a judicial proceeding is pending, to determine the
24	24	amount of the tax, penalty, or interest that is to be assessed,
25	25	collected, or refunded.
26	26	SECTION 3. Section 111.008(a), Tax Code, is amended to read
27	27	as follows:
28	28	(a) If the comptroller is not satisfied with a tax report,
29	29	[or] the amount of the tax required to be paid to the state by a
30	30	person, or the amount of an overpayment of tax identified in a tax
31	31	report or an audit, including a managed audit, the comptroller may
32	32	compute and determine the amount of tax to be paid or the amount to
33	33	be credited or refunded from information contained in the report or
34	34	from any other information available to the comptroller.
35	35	SECTION 4. Section 111.009, Tax Code, is amended by
36	36	amending Subsection (b) and adding Subsection (b-1) to read as
37	37	follows:
38	38	(b) A petition for redetermination must be filed before the
39	39	expiration of 60 days after the date the notice of determination is
40	40	issued or the redetermination is barred.
41	41	(b-1) If a petition for redetermination is not filed before
42	42	the expiration of the period provided by Subsection (b) and a suit
43	43	is not filed before the expiration of the period provided by Section
44	44	112.251 [this subsection], the determination is final on the
45	45	expiration of the later of those periods [period].
46	46	SECTION 5. Section 111.104(c), Tax Code, is amended to read
47	47	as follows:
48	48	(c) A claim for a refund must:
49	49	(1) be written;
50	50	(2) state [fully and in detail] each reason or ground
51	51	on which the claim is founded; and
52	52	(3) be filed before the expiration of the applicable
53	53	limitation period as provided by this code or before the expiration
54	54	of six months after a jeopardy or deficiency determination becomes
55	55	final, whichever period expires later.
56	56	SECTION 6. Sections 112.051(a) and (b), Tax Code, are
57	57	amended to read as follows:
58	58	(a) If a person [who is required to pay a tax imposed by this
59	59	title or collected by the comptroller under any law, including a
60	60	local tax collected by the comptroller,] contends that a [the] tax
61	61	imposed by this title or collected by the comptroller under any law,
62	62	including a local tax collected by the comptroller, is unlawful,
63	63	[or] that the public official charged with the duty of collecting
64	64	the tax may not legally demand or collect the tax, or that an order,
65	65	rule, or policy unlawfully or erroneously establishes or implies an
66	66	obligation to pay or collect the tax, the person shall pay the
67	67	amount [claimed by the state], and if the person intends to bring
68	68	suit under this subchapter, the person must submit with the payment
69	69	a protest.
70	70	(b) The protest must be in writing and must state [fully and
71	71	in detail] each reason or ground for recovering the payment.
72	72	SECTION 7. Section 112.052(a), Tax Code, is amended to read
73	73	as follows:
74	74	(a) A person may bring suit against the state to recover a
75	75	tax that [required to be paid to the state if] the person has first
76	76	paid [the tax] under protest as required by Section 112.051.
77	77	SECTION 8. Chapter 112, Tax Code, is amended by adding
78	78	Subchapter F to read as follows:
79	79	SUBCHAPTER F. SUIT AFTER DETERMINATION
80	80	Sec. 112.251. SUIT TO CHALLENGE DETERMINATION. (a) A
81	81	person may sue the comptroller to challenge the amount of an
82	82	underpayment or overpayment of tax, penalty, or interest that has
83	83	been the subject of a jeopardy or deficiency determination.
84	84	(b) The suit must be brought against both the comptroller
85	85	and the attorney general and must be filed in a district court.
86	86	(c) Except as provided by Subsection (d), the suit must be
87	87	filed not later than the 60th day after the issue date of the
88	88	determination or it is barred.
89	89	(d) If the person filed a petition for redetermination under
90	90	Section 111.009, the suit must be filed not later than the 60th day
91	91	after the issue date of the denial of the motion for rehearing or it
92	92	is barred.
93	93	Sec. 112.252. APPLICABLE PERIOD. The suit applies only to a
94	94	tax liability period that is the subject of the determination.
95	95	Sec. 112.253. COLLECTION ACTIONS ENJOINED. After the
96	96	comptroller has been timely served in a suit that complies with this
97	97	subchapter, the comptroller and the attorney general are enjoined
98	98	from collecting disputed amounts from the person bringing the suit
99	99	during the pendency of the suit.
100	100	Sec. 112.254. ATTORNEY GENERAL TO REPRESENT COMPTROLLER.
101	101	The attorney general shall represent the comptroller in a suit
102	102	under this subchapter.
103	103	Sec. 112.255. TRIAL DE NOVO. In a suit under this
104	104	subchapter, the issues shall be tried de novo as are other civil
105	105	cases.
106	106	Sec. 112.256. JUDGMENT. (a) The amount of a judgment for
107	107	the plaintiff shall be credited against any tax, penalty, or
108	108	interest imposed by this title and due from the plaintiff.
109	109	(b) The remainder of the amount of a judgment not credited
110	110	to a tax, penalty, or interest due shall be refunded to the
111	111	plaintiff.
112	112	(c) The plaintiff is entitled to interest on the amount of
113	113	tax included in a judgment for the plaintiff equal to the amount of
114	114	interest that would be due if the tax had been deposited in the
115	115	suspense account of the comptroller. The interest accrues
116	116	beginning from the date that the tax was paid until:
117	117	(1) the date that the amount is credited against the
118	118	plaintiff's tax liability; or
119	119	(2) a date determined by the comptroller that is not
120	120	sooner than 10 days before the actual date on which a refund warrant
121	121	is issued.
122	122	SECTION 9. The following provisions of the Tax Code are
123	123	repealed:
124	124	(1) Sections 111.0041(c) and (d);
125	125	(2) Section 111.105(e);
126	126	(3) Section 112.003;
127	127	(4) Section 112.052(d);
128	128	(5) Section 112.151(f); and
129	129	(6) Subchapter E, Chapter 112.
130	130	SECTION 10. The repeal by this Act of Subchapter E, Chapter
131	131	112, Tax Code, does not apply to a suit brought under that
132	132	subchapter before the effective date of this Act. That suit is
133	133	governed by the law as it existed immediately before the effective
134	134	date of this Act, and the former law is continued in effect for that
135	135	purpose.
136	136	SECTION 11. This Act applies to a claim for refund, a
137	137	determination, or an administrative proceeding that is pending or
138	138	in progress on or after the effective date of this Act, without
139	139	regard to whether the taxes that are the subject of the claim,
140	140	determination, or proceeding were due before, on, or after that
141	141	date.
142	142	SECTION 12. This Act takes effect September 1, 2023.