Texas House Bill HB46

Texas 2023 - 88th 2nd C.S.

• Filed: 6/28/23

Caption

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.

Impact

The proposed changes in HB 46 are expected to significantly affect how tax penalties are calculated and enforced in Texas. By limiting the penalties imposed on delinquent taxes and altering the payment application structure, the bill seeks to alleviate the financial burden on taxpayers. It essentially caps the amounts of penalties that can be assessed for failing to submit tax payments or reports on time, thus aiming to encourage compliance rather than punitive measures that could lead to further financial distress.

Summary

House Bill 46 aims to modify the existing tax code related to penalties for delinquent taxes and the application of taxpayer payments. The bill specifically introduces a stipulation that requires the comptroller to apply payments made by taxpayers to the tax due before applying any portion to penalties or interest unless instructed otherwise by the taxpayer. This change is intended to provide a fairer approach to how payments are processed, especially for individuals facing difficulties in meeting their tax obligations.

Sentiment

General sentiment towards HB 46 appears to be supportive among legislators who favor tax reform and advocate for more taxpayer-friendly policies. Proponents argue that this measure could lead to a more equitable taxation system that prioritizes the taxpayer’s ability to pay over strict penalties. However, there may also be caution expressed by those concerned about the potential implications for tax collection efficiency and state revenue.

Contention

Notable points of contention may arise regarding the balance between encouraging timely tax payments while ensuring that the state can effectively collect necessary revenues. While advocates highlight the fairness of the bill, critics may argue that less stringent penalties could lead to increased delinquency rates, ultimately impacting the state’s budget and funding for public services. Therefore, the discussion surrounding HB 46 revolves around finding a middle ground that supports taxpayers while safeguarding the state's financial interests.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 111. Collection Procedures
  • Section: New Section
  • Section: 061