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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate of interest on certain tax refunds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 111.064, Tax Code, is amended by |
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amending Subsections (a), (c), and (c-1) and adding Subsection |
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(a-1) to read as follows: |
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(a) Except as otherwise provided by this section, for a |
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refund under this chapter granted for a report period due on or |
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after September 1, 2027, interest is at the rate [that is the lesser |
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of the annual rate of interest earned on deposits in the state |
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treasury during December of the previous calendar year, as |
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determined by the comptroller, or the rate] set in Section |
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111.060[,] and accrues on the amount found to be erroneously paid |
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for a period: |
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(1) beginning on the later of 60 days after the date of |
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payment or the due date of the tax report; and |
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(2) ending on, as determined by the comptroller, |
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either the date of allowance of credit on account of the |
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comptroller's final decision or audit or a date not more than 10 |
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days before the date of the refund warrant. |
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(a-1) A refund under this chapter granted for a report |
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period due on or after September 1, 2023, but before September 1, |
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2025, accrues interest at the rate of the prime rate plus 0.5 |
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percent. A refund under this chapter granted for a report period |
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due on or after September 1, 2025, but before September 1, 2027, |
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accrues interest at the rate of the prime rate plus 0.75 percent. |
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Interest accrues under this subsection on the amount found to be |
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erroneously paid as described by Subsection (a). |
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(c) A [For a] refund under this chapter [claimed before |
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September 1, 2005, and] granted for a report period due on or after |
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January 1, 2000, but before September 1, 2023, accrues [the rate of] |
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interest as follows: |
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(1) if the refund is claimed before September 1, 2005, |
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at [is] the rate set in Section 111.060; and |
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(2) if the refund is claimed on or after September 1, |
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2005, at the rate that is the lesser of: |
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(A) the rate set in Section 111.060; or |
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(B) the annual rate of interest earned on |
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deposits in the state treasury during December of the previous |
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calendar year, as determined by the comptroller. |
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(c-1) A refund under this chapter granted [, without regard |
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to the date claimed,] for a report period due before January 1, |
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2000, does not accrue interest. |
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SECTION 2. This Act takes effect September 1, 2021. |