LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 1, 2025 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1337 by Creighton (Relating to the computation of certain tax penalties and interest amounts.), As Introduced The fiscal implications of the bill cannot be determined due to uncertainty concerning whether the bill would codify existing Comptroller practice, and therefore have no fiscal impact, or change how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact. The bill would amend Subchapter B (Tax Reports and Payments), Chapter 111 of the Tax Code (Collection Procedures) concerning the computation of certain tax penalties and interest amounts.The bill would amend Section 111.060 (Interest on Delinquent Tax), Tax Code, specifying interest on delinquent taxes is calculated after deducting any overpayments from the same or previous periods.The bill would amend Section 111.061 (Penalty on Delinquent Tax or Tax Reports), Tax Code, specifying the penalty for unpaid taxes is determined based on the remaining amount due after deducting any prior overpayments.The bill would amend Section 111.064 (Interest on Refund or Credit), Tax Code, stipulating interest on tax refunds is calculated only on the net overpayment, after any underpayments from the same or prior periods are first deducted.The bill would amend Section 151.508 (Offsets) Tax Code, by requiring, rather than allowing, the Comptroller to offset an overpayment for one or more periods against an underpayment, penalty, and interest accrued on the underpayment for the same period(s).The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025.According to the Comptroller of Public Accounts, due to ambiguities in the bill language, this bill has an uncertain fiscal impact to the state. While the bill could be read as codifying existing Comptroller practice, and therefore have no fiscal impact, it could also be read as changing how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact. Local Government ImpactThe fiscal implications of the bill cannot be determined due to uncertainty concerning whether the bill would codify existing Comptroller practice, and therefore have no fiscal impact, or change how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 1, 2025
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1337 by Creighton (Relating to the computation of certain tax penalties and interest amounts.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1337 by Creighton (Relating to the computation of certain tax penalties and interest amounts.), As Introduced
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1337 by Creighton (Relating to the computation of certain tax penalties and interest amounts.), As Introduced
SB1337 by Creighton (Relating to the computation of certain tax penalties and interest amounts.), As Introduced
The fiscal implications of the bill cannot be determined due to uncertainty concerning whether the bill would codify existing Comptroller practice, and therefore have no fiscal impact, or change how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact.
The fiscal implications of the bill cannot be determined due to uncertainty concerning whether the bill would codify existing Comptroller practice, and therefore have no fiscal impact, or change how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact.
The bill would amend Subchapter B (Tax Reports and Payments), Chapter 111 of the Tax Code (Collection Procedures) concerning the computation of certain tax penalties and interest amounts.The bill would amend Section 111.060 (Interest on Delinquent Tax), Tax Code, specifying interest on delinquent taxes is calculated after deducting any overpayments from the same or previous periods.The bill would amend Section 111.061 (Penalty on Delinquent Tax or Tax Reports), Tax Code, specifying the penalty for unpaid taxes is determined based on the remaining amount due after deducting any prior overpayments.The bill would amend Section 111.064 (Interest on Refund or Credit), Tax Code, stipulating interest on tax refunds is calculated only on the net overpayment, after any underpayments from the same or prior periods are first deducted.The bill would amend Section 151.508 (Offsets) Tax Code, by requiring, rather than allowing, the Comptroller to offset an overpayment for one or more periods against an underpayment, penalty, and interest accrued on the underpayment for the same period(s).The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025.According to the Comptroller of Public Accounts, due to ambiguities in the bill language, this bill has an uncertain fiscal impact to the state. While the bill could be read as codifying existing Comptroller practice, and therefore have no fiscal impact, it could also be read as changing how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact.
Local Government Impact
The fiscal implications of the bill cannot be determined due to uncertainty concerning whether the bill would codify existing Comptroller practice, and therefore have no fiscal impact, or change how penalty and interest is calculated for all taxpayers, which would have a significant fiscal impact.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD