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A BILL TO BE ENTITLED
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AN ACT
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relating to the maximum amount of penalties that may be imposed for |
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delinquent taxes and tax reports and the application of taxpayer |
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payments to taxes, penalties, and interest. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 111, Tax Code, is amended |
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by adding Section 111.0512 to read as follows: |
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Sec. 111.0512. APPLICATION OF TAX PAYMENTS. |
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Notwithstanding any other law, the comptroller shall apply a |
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payment made by a taxpayer to the amount of tax due before applying |
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any portion of the payment to a penalty or interest owed by the |
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taxpayer unless the taxpayer provides written instructions for a |
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different application of the payment. |
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SECTION 2. Section 111.061, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) A [Except as otherwise provided, a] penalty of five |
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percent of the tax due shall be imposed on a person who fails to pay |
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a tax imposed or file a report required by Title 2 or 3 of this code |
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when due, unless another law provides a lower penalty amount [and, |
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if the person fails to file the report or pay the tax within 30 days |
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after the day on which the tax or report is due, an additional five |
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percent penalty shall be imposed]. |
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(a-1) Notwithstanding any other law, a penalty imposed on a |
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person who fails to pay a tax imposed or file a report required by |
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Title 2 or 3 of this code when due may not exceed the amounts |
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provided by Subsection (a) and, if applicable, Subsection (b). |
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SECTION 3. Section 111.0512, Tax Code, as added by this Act, |
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applies only to a payment received on or after the effective date of |
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this Act. A payment received before the effective date of this Act |
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is governed by the law in effect on the date the payment was |
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received, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. Section 111.061, Tax Code, as amended by this |
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Act, applies only to an amount of tax or a tax report that is |
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originally due on or after the effective date of this Act. A |
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penalty in connection with an amount of tax or a tax report that was |
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originally due before the effective date of this Act is governed by |
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the law in effect on the date the tax or tax report was originally |
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due, and the former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2023. |