Enrolled Bill Summary

            Senate Bill 1319 amends the Limited Sales, Excise, and Use Tax Act to allow the comptroller to authorize a direct payment permit holder to use a percentage-based reporting method. Under that method, purchase transactions are categorized as specified in a letter of authorization, and a sample of invoices is then drawn to determine the percentage of taxable transactions. The percentage is used for a three-year period, except that the comptroller may revoke authorization if the percentage is no longer representative because of legal changes or modifications in the taxpayer's business operations. The legislation also empowers the comptroller, by written agreement, to authorize a payer of sales and use taxes to conduct a managed audit to determine his or her tax liability. Comptroller decisions to approve or disapprove a managed audit are final, and comptroller denials or revocations of percentage-based reporting are not appealable. Other provisions concern determinations of overpaid amounts, and resultant credits or refunds, where sales and use taxes have been paid in error.