By: Muñoz, Jr. H.B. No. 46
A BILL TO BE ENTITLED
AN ACT
relating to the maximum amount of penalties that may be imposed for
delinquent taxes and tax reports and the application of taxpayer
payments to taxes, penalties, and interest.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 111, Tax Code, is amended
by adding Section 111.0512 to read as follows:
Sec. 111.0512. APPLICATION OF TAX PAYMENTS.
Notwithstanding any other law, the comptroller shall apply a
payment made by a taxpayer to the amount of tax due before applying
any portion of the payment to a penalty or interest owed by the
taxpayer unless the taxpayer provides written instructions for a
different application of the payment.
SECTION 2. Section 111.061, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A [Except as otherwise provided, a] penalty of five
percent of the tax due shall be imposed on a person who fails to pay
a tax imposed or file a report required by Title 2 or 3 of this code
when due, unless another law provides a lower penalty amount [and,
if the person fails to file the report or pay the tax within 30 days
after the day on which the tax or report is due, an additional five
percent penalty shall be imposed].
(a-1) Notwithstanding any other law, a penalty imposed on a
person who fails to pay a tax imposed or file a report required by
Title 2 or 3 of this code when due may not exceed the amounts
provided by Subsection (a) and, if applicable, Subsection (b).
SECTION 3. Section 111.0512, Tax Code, as added by this Act,
applies only to a payment received on or after the effective date of
this Act. A payment received before the effective date of this Act
is governed by the law in effect on the date the payment was
received, and the former law is continued in effect for that
purpose.
SECTION 4. Section 111.061, Tax Code, as amended by this
Act, applies only to an amount of tax or a tax report that is
originally due on or after the effective date of this Act. A
penalty in connection with an amount of tax or a tax report that was
originally due before the effective date of this Act is governed by
the law in effect on the date the tax or tax report was originally
due, and the former law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2023.