89R3837 CJD-F
By: Creighton S.B. No. 1337
A BILL TO BE ENTITLED
AN ACT
relating to the computation of certain tax penalties and interest
amounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.060, Tax Code, is amended by
amending Subsection (a) and adding Subsection (e) to read as
follows:
(a) Subject to Subsection (e), the [The] yearly interest
rate on all delinquent taxes imposed by this title is at the rate of
12 percent for report periods originally due on or before December
31, 1999, after which the rate of interest is variable and
determined as provided in Subsection (b).
(e) For the purpose of computing interest under this
section, the amount of delinquent tax is the amount that remains due
after deducting any overpayments of the same tax made by the
taxpayer:
(1) for the same period during which the delinquent
tax was originally due; or
(2) for a period preceding the period described by
Subdivision (1).
SECTION 2. Section 111.061, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) For the purpose of computing penalties under this
section, the amount of tax due is the amount that remains due after
deducting any overpayments of the same tax made by the taxpayer:
(1) for the same period during which the failure to pay
the tax or file the report or other grounds for the penalty
occurred; or
(2) for a period preceding the period described by
Subdivision (1).
SECTION 3. Section 111.064, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) Except as otherwise provided by this section, for a
refund under this chapter, interest is at the rate that is the
lesser of the annual rate of interest earned on deposits in the
state treasury during November of the previous calendar year, as
determined by the comptroller, or the rate set in Section 111.060,
and accrues on the amount of an overpayment or erroneous payment
that remains after deducting any underpayments under Subsection
(a-1) [found to be erroneously paid] for a period:
(1) beginning on the later of 60 days after the date of
payment or the due date of the tax report; and
(2) ending on, as determined by the comptroller,
either the date of allowance of credit on account of the
comptroller's final decision or audit or a date not more than 10
days before the date of the refund warrant.
(a-1) For the purpose of computing interest under
Subsection (a) for an overpayment or erroneous payment of tax, the
amount of the overpayment or erroneous payment is the amount that
remains after deducting any underpayments of the same tax made by
the taxpayer:
(1) for the same period during which the tax that was
overpaid or erroneously paid was originally due; or
(2) for a period preceding the period described by
Subdivision (1).
SECTION 4. Section 151.508, Tax Code, is amended to read as
follows:
Sec. 151.508. OFFSETS. In making a determination, the
comptroller shall [may] offset an overpayment for one or more
periods against an underpayment, penalty, and interest accrued on
the underpayment for the same period or one or more other periods.
Any interest accrued on the overpayment shall be included in the
offset.
SECTION 5. The amendments made by this Act are
clarifications of existing law and do not imply that existing law
may be construed as inconsistent with the law as amended by this
Act.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.