Texas Senate Bill SB1337

Texas 2025 - 89th Regular

• Filed: 2/18/25

Caption

Relating to the computation of certain tax penalties and interest amounts.

Impact

This legislation is expected to positively affect taxpayers by providing clearer guidelines on calculating penalties and interest. With the proposed amendments, the determination of what constitutes a tax due will factor in overpayments, leading to potentially lower penalty amounts for taxpayers who have made prior payments. The bill intends to streamline the refund process as well, ensuring taxpayers can receive credits for overpayments efficiently, thus complying with the standards set forth in Texas law.

Summary

SB1337 introduces amendments to the existing Texas Tax Code, specifically addressing the computation of tax penalties and interest. The bill aims to clarify how overpayments are calculated concerning delinquent taxes and the penalties associated with failure to pay. By establishing that overpayments can be deducted from delinquent tax amounts, it ensures that taxpayers will not incur penalties on amounts they have already overpaid, effectively promoting tax fairness and accuracy in penalty assessments.

Contention

While the bill is mainly received as a clarifying measure of existing law, there could be discussions regarding its impact on state revenue. Concerns may arise from legislators who argue that changes to penalty calculations could reduce the state's ability to collect taxes efficiently. Additionally, some stakeholders might view this as a movement towards more taxpayer-friendly policy changes, but there could also be criticism regarding the potential for abuse in claiming overpayments, which may necessitate further examination and oversight by the state's tax authority.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 111. Collection Procedures
  • Section: 060
  • Section: 061
  • Section: 064

• Chapter 151. Limited Sales, Excise, And Use Tax
  • Section: New Section