Texas 2025 - 89th Regular

Texas Senate Bill SB266 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Perry S.B. No. 266
2		-
3		-
	2	+	(In the Senate - Filed November 12, 2024; February 3, 2025,
	3	+	read first time and referred to Committee on Finance;
	4	+	March 19, 2025, reported favorably by the following vote: Yeas 15,
	5	+	Nays 0; March 19, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to certain tax and fee collection procedures and taxpayer
9	12		suits.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Section 111.0041(c), Tax Code, is amended to
12	15		read as follows:
13	16		(c) A taxpayer shall produce sufficient [contemporaneous]
14	17		records and supporting documentation appropriate to the tax or fee
15	18		for the transactions in question to substantiate and enable
16	19		verification of the taxpayer's claim related to the amount of tax,
17	20		penalty, or interest to be assessed, collected, or refunded in an
18	21		administrative or judicial proceeding. Sufficient
19	22		[Contemporaneous] records and supporting documentation appropriate
20	23		to the tax or fee may include[, for example,] invoices, vouchers,
21	24		checks, shipping records, contracts, or other equivalent records,
22	25		such as electronically stored images of such documents, reflecting
23	26		legal relationships and taxes collected or paid.
24	27		SECTION 2. Section 111.0081, Tax Code, is amended by
25	28		amending Subsection (c) and adding Subsection (d) to read as
26	29		follows:
27	30		(c) The amount of a determination made under this code is
28	31		due and payable 20 days after a comptroller's decision in a
29	32		redetermination hearing becomes final. Except as provided by
30	33		Subsection (d), if [If] the amount of the determination is not paid
31	34		within 20 days after the day the decision became final, a penalty of
32	35		10 percent of the amount of the determination, exclusive of
33	36		penalties and interest, shall be added.
34	37		(d) The penalty provided by Subsection (c) is abated with
35	38		respect to the disputed amount that is the subject of a timely filed
36	39		suit under Subchapter E, Chapter 112. If the amount determined to
37	40		be due in a final judgment in the suit is not paid within 20 days
38	41		after the day the judgment became final, a penalty of 10 percent of
39	42		the amount due, exclusive of penalties and interest, shall be
40	43		added.
41	44		SECTION 3. Subchapter A, Chapter 111, Tax Code, is amended
42	45		by adding Section 111.0091 to read as follows:
43	46		Sec. 111.0091. DISPUTING RESULTS OF MANAGED AUDITS: NOTICE
44	47		OF INTENT TO BYPASS REDETERMINATION PROCESS. (a) A person who
45	48		conducts a managed audit authorized by Section 151.0231 or 201.3021
46	49		may file with the comptroller a notice of intent to bypass the
47	50		redetermination process under Section 111.009. The notice of
48	51		intent must:
49	52		(1) be filed on or before the 60th day after the date
50	53		the comptroller issues a letter notifying the person of the results
51	54		of the managed audit;
52	55		(2) be in writing;
53	56		(3) assert the material facts and each specific legal
54	57		basis for disputing the results of the managed audit; and
55	58		(4) specify the amounts of the disputed underpayments
56	59		or overpayments contained in the report of the managed audit
57	60		results.
58	61		(b) A person who files a notice of intent under Subsection
59	62		(a) may bypass the redetermination process under Section 111.009
60	63		and bring a suit under Subchapter D, Chapter 112, if:
61	64		(1) the person participated in a conference under
62	65		Subsection (c), in which case the suit must be filed on or before
63	66		the 60th day after the date the conference concludes or a later date
64	67		agreed to by the comptroller; or
65	68		(2) the comptroller does not provide notice in the
66	69		time required by Subsection (d) that a conference is required, in
67	70		which case the suit must be filed on or before the 90th day after the
68	71		date the notice of intent was filed.
69	72		(c) The comptroller may require a conference between a
70	73		person who files a notice of intent under Subsection (a) and a
71	74		designated officer or employee of the comptroller to clarify any
72	75		fact or legal issue in dispute regarding the results of the managed
73	76		audit and to discuss the availability of additional documentation
74	77		that may assist in resolving outstanding issues regarding the
75	78		managed audit. The person who filed the notice of intent may amend
76	79		a material fact or legal basis described by Subsection (a)(3)
77	80		following the conference if the comptroller agrees in writing to
78	81		the amendment.
79	82		(d) If the comptroller requires a conference under
80	83		Subsection (c), the comptroller shall notify the person of the
81	84		conference requirement not later than the 30th day after the date
82	85		the notice of intent under Subsection (a) was filed. The notice of
83	86		the conference requirement must be in writing and include a date and
84	87		time for the conference. The conference date provided in the notice
85	88		must be not later than the 90th day after the date the notice of
86	89		intent was filed.
87	90		(e) The person who filed the notice of intent under
88	91		Subsection (a) may request to reschedule the conference date
89	92		provided in the notice under Subsection (d). The comptroller shall
90	93		make a good faith effort to accommodate the request. If the
91	94		comptroller and the person who filed the notice of intent do not
92	95		agree on or before the 90th day after the date the notice of intent
93	96		was filed to a rescheduled date for the conference, the person may
94	97		on or before the 120th day after the date the notice of intent was
95	98		filed rescind the notice of intent and petition the comptroller for
96	99		a redetermination under Section 111.009.
97	100		(f) Except as provided by Subsection (e), a person who files
98	101		a notice of intent under Subsection (a) waives the person's right to
99	102		a redetermination under Section 111.009.
100	103		SECTION 4. Section 112.052(d), Tax Code, is amended to read
101	104		as follows:
102	105		(d) A taxpayer shall produce sufficient [contemporaneous]
103	106		records and supporting documentation appropriate to the tax for the
104	107		transactions in question to substantiate and enable verification of
105	108		a taxpayer's claim relating to the amount of the tax, penalty, or
106	109		interest that has been assessed or collected or will be refunded, as
107	110		required by Section 111.0041.
108	111		SECTION 5. The heading to Subchapter D, Chapter 112, Tax
109	112		Code, is amended to read as follows:
110	113		SUBCHAPTER D. SUIT FOR TAX REFUND OR TO DISPUTE RESULTS OF MANAGED
111	114		AUDIT
112	115		SECTION 6. Section 112.151(f), Tax Code, is amended to read
113	116		as follows:
114	117		(f) A taxpayer shall produce sufficient [contemporaneous]
115	118		records and supporting documentation appropriate to the tax or fee
116	119		for the transactions in question to substantiate and enable
117	120		verification of a taxpayer's claim relating to the amount of the
118	121		tax, penalty, or interest that has been assessed or collected or
119	122		will be refunded, as required by Section 111.0041.
120	123		SECTION 7. Subchapter D, Chapter 112, Tax Code, is amended
121	124		by adding Section 112.1511 to read as follows:
122	125		Sec. 112.1511. SUIT TO DISPUTE RESULTS OF MANAGED AUDIT.
123	126		(a) A person may sue the comptroller to dispute the results of a
124	127		managed audit conducted under Section 151.0231 or 201.3021 if the
125	128		person:
126	129		(1) has been issued a letter by the comptroller
127	130		notifying the person of the results of the managed audit; and
128	131		(2) is authorized to bring the suit under Section
129	132		111.0091(b).
130	133		(b) The suit must be brought against both the comptroller
131	134		and the attorney general and must be filed in a district court.
132	135		(c) The suit must be filed during the time provided by
133	136		Section 111.0091(b) or it is barred.
134	137		(d) The amounts of the disputed underpayments or
135	138		overpayments contained in the report of the managed audit results
136	139		must be set out in the original petition. A copy of the notice of
137	140		intent filed under Section 111.0091(a) must be attached to the
138	141		original petition filed with the court and to the copies of the
139	142		original petition served on the comptroller and the attorney
140	143		general.
141	144		(e) A person may not intervene in the suit.
142	145		(f) A taxpayer shall produce sufficient records and
143	146		supporting documentation appropriate to the tax or fee for the
144	147		transactions in question to substantiate and enable verification of
145	148		a taxpayer's claim relating to the amount of the tax, penalty, or
146	149		interest to be assessed, collected, or refunded, as required by
147	150		Section 111.0041, including the amounts of the disputed
148	151		underpayments or overpayments contained in the report of the
149	152		managed audit results.
150	153		(g) After the comptroller has been timely served in a suit
151	154		that complies with this section, the comptroller and the attorney
152	155		general:
153	156		(1) are enjoined from collecting disputed
154	157		underpayments identified in Section 111.0091(a)(4) from the person
155	158		bringing the suit during the pendency of the suit; and
156	159		(2) are not enjoined from:
157	160		(A) asserting tax liens; or
158	161		(B) as an alternative to asserting tax liens,
159	162		requiring the person to provide security:
160	163		(i) in an amount sufficient to secure
161	164		payment of the entire disputed amount, including penalties and
162	165		accrued interest, that is the subject of the suit; and
163	166		(ii) in the form of a cash deposit filed
164	167		with the comptroller or paid into the registry of the court, a
165	168		surety bond, a letter of credit, or another form of guarantee.
166	169		(h) Damages may be awarded under Chapter 65, Civil Practice
167	170		and Remedies Code, if the court determines that all or part of the
168	171		enjoined collection amounts under Subsection (g) were disputed
169	172		solely for delay.
170	173		SECTION 8. Section 112.152, Tax Code, is amended to read as
171	174		follows:
172	175		Sec. 112.152. ISSUES IN SUIT. (a) The only issues that may
173	176		be raised in a suit under this subchapter are, as applicable, the:
174	177		(1) grounds of error contained in the motion for
175	178		rehearing; or
176	179		(2) material facts and legal bases contained in the
177	180		notice of intent filed under Section 111.0091(a) or 111.106(a).
178	181		(b) The suit applies only to a tax liability period
179	182		considered in the comptroller's decision or covered by the notice
180	183		of intent filed under Section 111.0091 or 111.106, as applicable.
181	184		SECTION 9. Section 112.201, Tax Code, is amended by
182	185		amending Subsection (c) and adding Subsections (c-1) and (c-2) to
183	186		read as follows:
184	187		(c) A person bringing a suit under this subchapter may pay
185	188		the disputed amounts as provided by Chapter 111. A disputed amount
186	189		that is not paid as provided by Chapter 111 and that is determined
187	190		to be due in a final judgment accrues penalties and interest as
188	191		provided by Chapter 111.
189	192		(c-1) After the comptroller has been timely served in a suit
190	193		that complies with this subchapter, the comptroller and the
191	194		attorney general:
192	195		(1) are enjoined from collecting disputed amounts from
193	196		the person bringing the suit during the pendency of the suit; and
194	197		(2) [but] are not enjoined from:
195	198		(A) asserting tax liens; or
196	199		(B) as an alternative to asserting tax liens,
197	200		requiring the person to provide security:
198	201		(i) in an amount sufficient to secure
199	202		payment of the entire disputed amount, including penalties and
200	203		accrued interest, that is the subject of the suit; and
201	204		(ii) in the form of a cash deposit filed
202	205		with the comptroller or paid into the registry of the court, a
203	206		surety bond, a letter of credit, or another form of guarantee.
204	207		(c-2) Damages may be awarded under Chapter 65, Civil
205	208		Practice and Remedies Code, if the court determines that all or part
206	209		of the enjoined collection amounts under Subsection (c-1) were
207	210		disputed solely for delay.
208	211		SECTION 10. Section 112.202, Tax Code, is amended to read as
209	212		follows:
210	213		Sec. 112.202. RECORDS. A person shall produce, in
211	214		connection with a suit under this subchapter, sufficient
212	215		[contemporaneous] records and supporting documentation appropriate
213	216		to the tax for the transactions in question to substantiate and
214	217		enable verification of the person's claim relating to the amount of
215	218		the tax, penalty, or interest that has been assessed or collected,
216	219		as required by Section 111.0041.
217	220		SECTION 11. Section 111.105(e), Tax Code, is repealed.
218	221		SECTION 12. This Act applies to a managed audit that is in
219	222		progress and an administrative or judicial proceeding that is
220	223		pending or filed on or after the effective date of this Act, without
221	224		regard to whether the taxes that are the subject of the managed
222	225		audit or proceeding were due before, on, or after that date.
223	226		SECTION 13. This Act takes effect immediately if it
224	227		receives a vote of two-thirds of all the members elected to each
225	228		house, as provided by Section 39, Article III, Texas Constitution.
226	229		If this Act does not receive the vote necessary for immediate
227	230		effect, this Act takes effect September 1, 2025.
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