Texas 2025 - 89th Regular

Texas House Bill HB3994 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3837 CJD-F
2	2	By: Troxclair H.B. No. 3994
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4	4
5	5
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the computation of certain tax penalties and interest
10	10	amounts.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 111.060, Tax Code, is amended by
13	13	amending Subsection (a) and adding Subsection (e) to read as
14	14	follows:
15	15	(a) Subject to Subsection (e), the [The] yearly interest
16	16	rate on all delinquent taxes imposed by this title is at the rate of
17	17	12 percent for report periods originally due on or before December
18	18	31, 1999, after which the rate of interest is variable and
19	19	determined as provided in Subsection (b).
20	20	(e) For the purpose of computing interest under this
21	21	section, the amount of delinquent tax is the amount that remains due
22	22	after deducting any overpayments of the same tax made by the
23	23	taxpayer:
24	24	(1) for the same period during which the delinquent
25	25	tax was originally due; or
26	26	(2) for a period preceding the period described by
27	27	Subdivision (1).
28	28	SECTION 2. Section 111.061, Tax Code, is amended by adding
29	29	Subsection (d) to read as follows:
30	30	(d) For the purpose of computing penalties under this
31	31	section, the amount of tax due is the amount that remains due after
32	32	deducting any overpayments of the same tax made by the taxpayer:
33	33	(1) for the same period during which the failure to pay
34	34	the tax or file the report or other grounds for the penalty
35	35	occurred; or
36	36	(2) for a period preceding the period described by
37	37	Subdivision (1).
38	38	SECTION 3. Section 111.064, Tax Code, is amended by
39	39	amending Subsection (a) and adding Subsection (a-1) to read as
40	40	follows:
41	41	(a) Except as otherwise provided by this section, for a
42	42	refund under this chapter, interest is at the rate that is the
43	43	lesser of the annual rate of interest earned on deposits in the
44	44	state treasury during November of the previous calendar year, as
45	45	determined by the comptroller, or the rate set in Section 111.060,
46	46	and accrues on the amount of an overpayment or erroneous payment
47	47	that remains after deducting any underpayments under Subsection
48	48	(a-1) [found to be erroneously paid] for a period:
49	49	(1) beginning on the later of 60 days after the date of
50	50	payment or the due date of the tax report; and
51	51	(2) ending on, as determined by the comptroller,
52	52	either the date of allowance of credit on account of the
53	53	comptroller's final decision or audit or a date not more than 10
54	54	days before the date of the refund warrant.
55	55	(a-1) For the purpose of computing interest under
56	56	Subsection (a) for an overpayment or erroneous payment of tax, the
57	57	amount of the overpayment or erroneous payment is the amount that
58	58	remains after deducting any underpayments of the same tax made by
59	59	the taxpayer:
60	60	(1) for the same period during which the tax that was
61	61	overpaid or erroneously paid was originally due; or
62	62	(2) for a period preceding the period described by
63	63	Subdivision (1).
64	64	SECTION 4. Section 151.508, Tax Code, is amended to read as
65	65	follows:
66	66	Sec. 151.508. OFFSETS. In making a determination, the
67	67	comptroller shall [may] offset an overpayment for one or more
68	68	periods against an underpayment, penalty, and interest accrued on
69	69	the underpayment for the same period or one or more other periods.
70	70	Any interest accrued on the overpayment shall be included in the
71	71	offset.
72	72	SECTION 5. The amendments made by this Act are
73	73	clarifications of existing law and do not imply that existing law
74	74	may be construed as inconsistent with the law as amended by this
75	75	Act.
76	76	SECTION 6. This Act takes effect immediately if it receives
77	77	a vote of two-thirds of all the members elected to each house, as
78	78	provided by Section 39, Article III, Texas Constitution. If this
79	79	Act does not receive the vote necessary for immediate effect, this
80	80	Act takes effect September 1, 2025.