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A BILL TO BE ENTITLED
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AN ACT
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relating to taxpayers' suits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.202(a), Government Code, is amended |
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to read as follows: |
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(a) If a person who is required to pay to any department of |
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the state government an occupation, excise, gross receipts, |
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franchise, license, or privilege tax or fee, [other than a tax or |
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fee to which Subchapter B, Chapter 112, Tax Code, applies] or |
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another [a] tax or [other] amount imposed under Subtitle A, Title 4, |
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Labor Code, contends that the tax or fee is unlawful or that the |
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department may not legally demand or collect the tax or fee, the |
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person shall pay the amount claimed by the state, and if the person |
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intends to bring suit under this subchapter, the person must submit |
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with the payment a protest. |
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SECTION 2. Subchapter J, Chapter 403, Government Code, is |
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amended by adding Section 403.222 to read as follows: |
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Sec. 403.222. APPLICABILITY. This subchapter does not |
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apply to a suit under Chapter 112, Tax Code. |
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SECTION 3. Section 111.207(a), Tax Code, is amended to read |
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as follows: |
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(a) In determining the expiration date for a period when a |
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tax imposed by this title may be assessed, collected, or refunded, |
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the following periods are not considered: |
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(1) [the period following the date of a tax payment |
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made under protest, but only if a lawsuit is timely filed in |
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accordance with Chapter 112; |
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[(2)] the period during which a judicial proceeding is |
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pending in a court of competent jurisdiction to determine the |
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amount of the tax due; |
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(2) [(3)] the period during which an administrative |
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redetermination or refund hearing is pending before the |
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comptroller; and |
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(3) [(4)] the period during which an indictment or |
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information is pending for a felony offense related to the |
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administration of the Tax Code against any taxpayer or any person |
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personally liable or potentially personally liable for the payment |
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of the tax under Section 111.0611. |
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SECTION 4. Subchapter A, Chapter 112, Tax Code, is amended |
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by adding Section 112.003 to read as follows: |
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Sec. 112.003. ATTORNEY FEES. Except for a sanction under |
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Chapter 10, Civil Practice and Remedies Code, or the Texas Rules of |
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Civil Procedure, attorney's fees may not be awarded in a suit |
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seeking legal or equitable relief against the state, a state |
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agency, or an officer of the state relating to the applicability, |
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assessment, collection, constitutionality, or amount of a tax, fee, |
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or penalty imposed by this title or Title 3 or collected by the |
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comptroller under any other law. |
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SECTION 5. The heading to Subchapter B, Chapter 112, Tax |
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Code, is amended to read as follows: |
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SUBCHAPTER B. SUIT AFTER REDETERMINATION [PROTEST PAYMENT] |
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SECTION 6. Subchapter B, Chapter 112, Tax Code, is amended |
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by adding Sections 112.061, 112.062, 112.063, 112.064, 112.065, |
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112.066, 112.067, and 112.068 to read as follows: |
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Sec. 112.061. SUIT AFTER REDETERMINATION. (a) A person may |
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sue the comptroller to dispute an amount of tax, penalty, or |
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interest assessed in a deficiency redetermination or jeopardy |
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redetermination under Chapter 111 if the person has: |
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(1) filed a request for redetermination under Chapter |
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111; |
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(2) obtained a redetermination under Chapter 111 that |
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includes a finding by the comptroller of the disputed and |
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undisputed amounts; and |
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(3) filed a motion for rehearing of the |
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redetermination that complies with Chapter 2001, Government Code, |
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and that states the specific grounds of error and the disputed |
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amounts associated with the grounds of error. |
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(b) A person bringing a suit under this subchapter shall |
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pay, as provided by Chapter 111, the redetermination amounts that |
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are not disputed in the motion for rehearing. The failure to pay an |
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undisputed amount does not affect the jurisdiction of a court to |
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consider a suit that complies with Subsection (a). |
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(c) A person bringing a suit under this subchapter may pay |
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the disputed amounts as provided by Chapter 111. A disputed amount |
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that is not paid as provided by Chapter 111 and that is determined |
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to be due in a final judgment accrues penalties and interest as |
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provided by Chapter 111. After the comptroller has been timely |
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served in a suit that complies with this subchapter, the |
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comptroller and the attorney general are enjoined from collecting |
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disputed amounts during the pendency of the suit but are not |
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enjoined from asserting tax liens. Damages may be awarded under |
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Chapter 65, Civil Practice and Remedies Code, if the court |
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determines that all or part of the enjoined collection amounts were |
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disputed solely for delay. |
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(d) A suit under this subchapter must be brought against |
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both the comptroller and the attorney general. |
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(e) A suit under this subchapter must be filed before the |
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expiration of 60 days after the issue date of the denial of the |
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motion for rehearing or it is barred. |
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(f) The disputed and undisputed amounts of the |
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redetermination must be set out in the original petition. A copy of |
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the motion for rehearing must be attached to the original petition |
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filed with the court and to the copies of the original petition |
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served on the comptroller and the attorney general. |
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(g) A person may not intervene in a suit under this |
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subchapter. |
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Sec. 112.062. RECORDS. A person shall produce, in |
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connection with a suit under this subchapter, contemporaneous |
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records and supporting documentation appropriate to the tax or fee |
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for the transactions in question to substantiate and enable |
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verification of the person's claim relating to the amount of the |
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tax, penalty, or interest that has been assessed or collected, as |
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required by Section 111.0041. |
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Sec. 112.063. COUNTERCLAIM. (a) The state may bring a |
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counterclaim in a suit under this subchapter if: |
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(1) the counterclaim relates to taxes or fees imposed |
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under the same statute and during the same period as the taxes or |
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fees that are the subject of the suit; and |
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(2) the counterclaim is filed not later than the 30th |
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day before the date set for trial on the merits of the suit. |
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(b) The state is not required to make an assessment of the |
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taxes or fees subject to the counterclaim under any other statute, |
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and the period of limitation applicable to an assessment of the |
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taxes or fees does not apply to a counterclaim brought under this |
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section. |
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Sec. 112.064. ISSUES IN SUIT. (a) The grounds of error |
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contained in the motion for rehearing are the only issues that may |
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be raised in a suit under this subchapter. |
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(b) A suit under this subchapter applies only to a tax |
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liability period considered in the comptroller's redetermination. |
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Sec. 112.065. ATTORNEY GENERAL TO REPRESENT COMPTROLLER. |
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The attorney general shall represent the comptroller in a suit |
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under this subchapter. |
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Sec. 112.066. TRIAL DE NOVO. In a suit under this |
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subchapter, the issues shall be tried de novo as are other civil |
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cases. |
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Sec. 112.067. JUDGMENT. (a) The amount of a judgment |
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refunding disputed taxes, penalties, or interest paid to the |
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comptroller shall be credited against any tax, penalty, or interest |
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imposed by this title and due from the plaintiff. |
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(b) The remainder of the amount of a judgment not credited |
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against a tax, penalty, or interest shall be refunded to the |
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plaintiff. |
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(c) The plaintiff is entitled to interest on the amount of |
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tax refunded in a judgment for the plaintiff equal to the amount of |
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interest that would be due if the tax had been deposited in the |
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suspense account of the comptroller. The interest accrues beginning |
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from the date that the tax was paid until: |
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(1) the date that the amount is credited against the |
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plaintiff's tax liability; or |
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(2) a date determined by the comptroller that is not |
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sooner than 10 days before the actual date on which a refund warrant |
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is issued. |
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Sec. 112.068. RES JUDICATA. The rule of res judicata |
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applies in a suit under this subchapter only if the issues and the |
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tax liability periods in controversy are the same as were decided in |
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a previous final judgment entered in a Texas court of record in a |
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suit between the same parties. |
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SECTION 7. The following provisions are repealed: |
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(1) Section 403.212(e), Government Code; |
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(2) Sections 112.051, 112.052, 112.053, 112.054, |
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112.055, 112.056, 112.057, 112.058, 112.059, and 112.060, Tax Code; |
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and |
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(3) Subchapter C, Chapter 112, Tax Code. |
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SECTION 8. The changes in law made by this Act apply only to |
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a suit to dispute an amount of tax, penalty, or interest that |
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becomes due and payable on or after the effective date of this Act. |
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A suit to dispute an amount of tax, penalty, or interest that became |
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due and payable before the effective date of this Act is governed by |
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the law as it existed immediately before the effective date of this |
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Act, and the former law is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2021. |