By: Junell H.B. No. 1012
73R5110 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the payment of certain protested or contested taxes,
1-3 fees, or penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 112.052(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) A person may bring suit against the state to recover an
1-8 occupation, excise, gross receipts, franchise, license, or
1-9 privilege tax or fee required to be paid to the state if the person
1-10 has first paid the tax under protest as required by Section 112.051
1-11 of this code.
1-12 SECTION 2. Section 112.058(a), Tax Code, is amended to read
1-13 as follows:
1-14 (a) Except as provided in Subsections (b) and (c) of this
1-15 section, payments made under protest are to be handled as follows:
1-16 (1) An officer who receives payments made under
1-17 protest as required by Section 112.051 of this code shall each day
1-18 send to the treasurer the payments, a list of the persons making
1-19 the payments, and a written statement that the payments were made
1-20 under protest.
1-21 (2) The treasurer shall, immediately on receipt,
1-22 credit the payments to each fund to which the tax or fee paid under
1-23 protest is allocated by law <the suspense account in accordance
1-24 with Section 404.062(c), Government Code, and deposit the payments
2-1 in state depositories bearing interest in the same manner that
2-2 other funds are required to be placed in state depositories at
2-3 interest>.
2-4 (3) The treasurer shall maintain detailed records of
2-5 payments made under protest <allocate the interest earned on these
2-6 funds and credit the amount allocated to the suspense account until
2-7 the status of the funds is finally determined>.
2-8 (4) A payment under protest <that is placed in a fund
2-9 or an account other than a suspense account> bears pro rata
2-10 interest. The pro rata interest is the amount of interest that
2-11 would be due if the amount had been placed in the suspense account
2-12 of the treasurer.
2-13 SECTION 3. Section 112.059, Tax Code, is amended to read as
2-14 follows:
2-15 Sec. 112.059. Disposition of Protest Payments Belonging to
2-16 the State. If a suit authorized by this subchapter is not brought
2-17 in the manner or within the time required or if the suit is
2-18 properly filed and results in a final determination that a tax
2-19 payment or a portion of a tax payment made under protest, including
2-20 the pro rata amount of interest earned on the payment, belongs to
2-21 the state, the treasurer shall ensure that <transfer> the proper
2-22 amount has been deposited <from the suspense account> to the credit
2-23 of the appropriate state fund.
2-24 SECTION 4. Section 112.060(c), Tax Code, is amended to read
2-25 as follows:
2-26 (c) Each tax refund warrant shall be drawn against each fund
2-27 to which the taxes paid under protest are allocated by law <the
3-1 suspense account>. If there are not sufficient funds in each fund
3-2 to which the taxes paid under protest are allocated by law <the
3-3 suspense account> to pay a refund required to be paid under
3-4 Subsection (a) of this section, then the comptroller shall draw the
3-5 warrant against the General Revenue Fund or other funds from which
3-6 refund appropriations may be made, as the comptroller determines
3-7 appropriate.
3-8 SECTION 5. Section 112.101(d), Tax Code, is amended to read
3-9 as follows:
3-10 (d) The public official shall deliver a payment or bond
3-11 required by Subsection (a)(2) to the treasurer. The treasurer
3-12 shall deposit a payment made under Subsection (a)(2)(A) to the
3-13 credit of each fund to which the tax, fee, or penalty is allocated
3-14 by law. A payment made under Subsection (a)(2)(A) bears pro rata
3-15 interest. The pro rata interest is the amount of interest that
3-16 would be due if the amount had been placed into the suspense
3-17 account of the treasurer.
3-18 SECTION 6. Section 112.104(a), Tax Code, is amended to read
3-19 as follows:
3-20 (a) If an applicant for an order or injunction granted under
3-21 this subchapter has not filed a bond as required by Section
3-22 112.101(a)(2)(B) of this code, the applicant shall pay to <into the
3-23 suspense account of> the treasurer all taxes, fees, and penalties
3-24 to which the order or injunction applies as those taxes, fees, and
3-25 penalties accrue and before they become delinquent. The treasurer
3-26 shall credit the payment to each fund to which the tax, fee, or
3-27 penalty is allocated by law.
4-1 SECTION 7. Section 112.106(a), Tax Code, is amended to read
4-2 as follows:
4-3 (a) If a restraining order or injunction is finally
4-4 dismissed or dissolved, the treasurer shall:
4-5 (1) if a bond was filed, make demand on the applicant
4-6 and the applicant's sureties for the immediate payment of all
4-7 taxes, fees, and penalties due the state; or
4-8 (2) if no bond was filed, ensure that <transfer> the
4-9 proper amount of taxes, fees, and penalties has been deposited
4-10 <from the suspense account> to the credit of the proper fund to
4-11 which the taxes, fees, and penalties are allocated.
4-12 SECTION 8. Section 112.107, Tax Code, is amended to read as
4-13 follows:
4-14 Sec. 112.107. Credit or Refund. If the final judgment in a
4-15 suit under this subchapter maintains the right of the applicant for
4-16 a temporary or permanent injunction to prevent the assessment or
4-17 collection of the tax, the treasurer shall credit the money
4-18 deposited <in the suspense account> under this subchapter, with the
4-19 pro rata interest earned on the money, against any other amount
4-20 finally determined to be due to the state from the applicant
4-21 according to information in the custody of the treasurer and shall
4-22 refund the remainder to the applicant.
4-23 SECTION 9. Section 403.202(a), Government Code, is amended
4-24 to read as follows:
4-25 (a) If a person who is required to pay to any department of
4-26 the state government an occupation, excise, gross receipts,
4-27 franchise, license, or privilege tax or fee, other than a tax or
5-1 fee to which Subchapter B, Chapter 112, Tax Code, applies or a tax
5-2 or other amount imposed under the Texas Unemployment Compensation
5-3 Act (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)
5-4 contends that the tax or fee is unlawful or that the department may
5-5 not legally demand or collect the tax or fee, the person shall pay
5-6 the amount claimed by the state, and if the person intends to bring
5-7 suit under this subchapter, the person must submit with the payment
5-8 a protest.
5-9 SECTION 10. Section 403.203(a), Government Code, is amended
5-10 to read as follows:
5-11 (a) A person may bring suit against the state to recover an
5-12 occupation, excise, gross receipts, franchise, license, or
5-13 privilege tax or fee covered by this subchapter and required to be
5-14 paid to the state if the person has first paid the tax under
5-15 protest as required by Section 403.202.
5-16 SECTION 11. Section 403.212(d), Government Code, is amended
5-17 to read as follows:
5-18 (d) A state official who receives a payment or bond under
5-19 Subsection (a)(2) shall deliver the payment or bond to the
5-20 treasurer. The treasurer shall deposit a payment made under
5-21 Subsection (a)(2)(A) to the credit of each fund to which the tax,
5-22 fee, or penalty is allocated by law <into the suspense account of
5-23 the treasurer>.
5-24 SECTION 12. On the effective date of this Act the state
5-25 treasurer shall transfer all protested or contested amounts
5-26 received under Section 112.058(a) or 112.101(d), Tax Code, or
5-27 Section 403.212(d), Government Code, that are in a suspense
6-1 account, including accrued interest on the amounts, to the credit
6-2 of each appropriate fund to which the taxes, fees, or penalties
6-3 being protested or contested are allocated by law.
6-4 SECTION 13. This Act takes effect September 1, 1993.
6-5 SECTION 14. The importance of this legislation and the
6-6 crowded condition of the calendars in both houses create an
6-7 emergency and an imperative public necessity that the
6-8 constitutional rule requiring bills to be read on three several
6-9 days in each house be suspended, and this rule is hereby suspended.