Enrolled Bill Summary

            Senate Bill 1321 amends the Tax Code to provide that, after December 31, 1999, the interest rate on delinquent taxes equals the prime rate plus one percent, as published in The Wall Street Journal on the first nonholiday weekday of the calendar year. The act entitles a taxpayer to interest on a claim for refund or in an audit on an amount erroneously paid. It specifies the period for which interest is to be paid and sets the rate at the same rate that is applicable to tax delinquencies. A tax credit, however, does not accrue interest, nor does a refund for a report period due before 2000. Other exceptions to the interest entitlement concern taxes paid under the escheat title of the Property Code and certain motor fuel taxes involving interstate motor vehicle fleets. The act removes certain dollar amount thresholds applicable to the comptroller's current authority to settle claims and clarifies that authority. It authorizes the comptroller to settle a claim for a refund of tax, penalty, or interest if the total costs of defending a denial of the claim, as determined conclusively by the comptroller, would exceed the total amount claimed. Provisions relating to interest and interest rates take effect January 1, 2000. Other provisions take effect August 30, 1999.