S.B. No. 82
AN ACT
1-1 relating to the administration, collection, enforcement, and
1-2 application of, and exemptions from, various taxes and fees;
1-3 creating offenses and providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1
1-6 SECTION 1.01. Section 101.003, Tax Code, is amended by
1-7 amending Subdivisions (8) and (11) and adding Subdivision (12) to
1-8 read as follows:
1-9 (8) "Taxpayer" means a person liable for a tax, fee,
1-10 assessment, or other amount imposed by a statute or under the
1-11 authority of a statutory function administered by the comptroller
1-12 <this title>.
1-13 (11) "Report" means a tax return, declaration,
1-14 statement, or other document required to be filed with the
1-15 comptroller <by a provision of this title>.
1-16 (12) "Obligation" means the duty of a person to pay a
1-17 tax, fee, assessment, or other amount or to make, file, or keep a
1-18 report, certificate, affidavit, or other document.
1-19 SECTION 1.02. Subchapter A, Chapter 111, Tax Code, is
1-20 amended by adding Section 111.0022 to read as follows:
1-21 Sec. 111.0022. APPLICATION TO OTHER LAWS ADMINISTERED BY
1-22 COMPTROLLER. This subtitle and Subtitle A of this title apply to
1-23 the administration, collection, and enforcement of other taxes,
1-24 fees, and charges, including penalties, or other financial
2-1 transactions, that the comptroller is required or authorized to
2-2 collect or administer under other law, to the extent that the other
2-3 law does not conflict with this subtitle or Subtitle A of this
2-4 title.
2-5 SECTION 1.03. Subsections (e), (g), and (h), Section
2-6 111.021, Tax Code, are amended to read as follows:
2-7 (e) A notice under this section that attempts to prohibit
2-8 the transfer or disposal of an asset possessed or controlled by a
2-9 bank is <not> effective if <unless> it is delivered or mailed to
2-10 the principal or any branch office of the bank including any <or
2-11 the> office of the bank at which the deposit is carried or the
2-12 credit or property is held.
2-13 (g) At any time during the <last 45 days of the> 60-day
2-14 period as stated in Subdivision (2) of Subsection (d) of this
2-15 section, the comptroller may levy upon the asset or debt. The levy
2-16 shall be accomplished by delivery of a notice of levy, upon receipt
2-17 of which the person possessing the asset or debt shall transfer the
2-18 asset to the comptroller or pay to the comptroller the amount owed
2-19 to the delinquent or to the person against whom the unpaid
2-20 determination is made.
2-21 (h) A notice delivered under this section is effective:
2-22 (1) at the time of delivery against all property,
2-23 rights to property, credits, and/or debts involving the delinquent
2-24 taxpayer which are not at the time of the <such> notice subject to
2-25 an attachment, garnishment, or execution issued through a judicial
2-26 process; and
2-27 (2) against all property, rights to property, credits
3-1 and/or debts involving the delinquent taxpayer that come into the
3-2 possession or control of the person served with the notice within
3-3 the 60-day period provided by Subdivision (2) of Subsection (d) of
3-4 this section.
3-5 SECTION 1.04. Section 111.051, Tax Code, is amended to read
3-6 as follows:
3-7 Sec. 111.051. REPORTS AND PAYMENTS; DUE DATES; METHOD OF
3-8 PAYMENT. (a) The comptroller may set the date for filing a report
3-9 for and making a payment of a tax imposed by this title.
3-10 (b) A date set by the comptroller under this section
3-11 prevails over a different date prescribed by this title for the
3-12 filing of a report for or the payment of a tax, except that the
3-13 comptroller may only set a report or payment date for the state
3-14 sales and use tax that conflicts with the dates prescribed by
3-15 Chapter 151 of this code in case of public calamity or natural
3-16 disaster.
3-17 (c) The comptroller may require that all payments from a
3-18 taxpayer who files tax reports monthly and remits three or more
3-19 dishonored or insufficient funds checks or drafts within a
3-20 six-month period be remitted using certified instruments. The
3-21 comptroller may require that all payments from a taxpayer who files
3-22 tax reports quarterly and remits three or more dishonored or
3-23 insufficient funds checks or drafts within an 18-month period be
3-24 remitted by using certified instruments. In this subsection,
3-25 "certified instruments" includes cashier's checks and money orders.
3-26 The comptroller shall send written notice of a payment restriction
3-27 under this subsection to the taxpayer at the business address shown
4-1 on the comptroller's records. A failure to remit a payment by a
4-2 certified instrument after imposition of the payment restriction by
4-3 the comptroller is grounds for the suspension and revocation of a
4-4 permit or license as provided by Section 111.0047 of this code.
4-5 SECTION 1.05. Section 111.201, Tax Code, is amended to read
4-6 as follows:
4-7 Sec. 111.201. ASSESSMENT AND REFUND LIMITATION. (a) No tax
4-8 imposed by this title may be assessed after four years from the
4-9 date that the tax becomes due and payable.
4-10 (b) No refund of any tax imposed by this title may be made
4-11 by the comptroller after four years after the date that the tax was
4-12 paid, except on tolling of the statute of limitations for refunds
4-13 as provided in this title.
4-14 SECTION 1.06. Section 151.304, Tax Code, is amended by
4-15 adding Subsection (g) to read as follows:
4-16 (g) A person who holds a permit issued under this chapter
4-17 and makes a purchase from a person entitled to claim the exemption
4-18 provided by Subsection (b)(1) of this section shall accrue use tax
4-19 on the transaction and remit it to the comptroller.
4-20 SECTION 1.07. Section 151.316, Tax Code, is amended to read
4-21 as follows:
4-22 Sec. 151.316. Agricultural Items. (a) The following items
4-23 are exempted from the taxes imposed by this chapter:
4-24 (1) horses, mules, and work animals;
4-25 (2) animal life the products of which ordinarily
4-26 constitute food for human consumption;
4-27 (3) feed for farm and ranch animals;
5-1 (4) feed for animals that are held for sale in the
5-2 regular course of business;
5-3 (5) seeds and annual plants the products of which:
5-4 (A) ordinarily constitute food for human
5-5 consumption;
5-6 (B) are to be sold in the regular course of
5-7 business; or
5-8 (C) are used to produce feed for animals
5-9 exempted by this section;
5-10 (6) fertilizers, fungicides, insecticides, herbicides,
5-11 defoliants, and desiccants exclusively used or employed on a farm
5-12 or ranch in the production of:
5-13 (A) food for human consumption;
5-14 (B) feed for animal life; or
5-15 (C) other agricultural products to be sold in
5-16 the regular course of business;
5-17 (7) machinery and equipment exclusively used or
5-18 employed on a farm or ranch in the building or maintaining of roads
5-19 or water facilities or in the production of:
5-20 (A) food for human consumption;
5-21 (B) grass;
5-22 (C) feed for animal life; or
5-23 (D) other agricultural products to be sold in
5-24 the regular course of business;
5-25 (8) machinery and equipment exclusively used in the
5-26 processing, packing, or marketing of agricultural products by the
5-27 original producer at a location operated by the original producer
6-1 exclusively for processing, packing, or marketing the producer's
6-2 own products; and
6-3 (9) ice exclusively used by commercial fishing boats
6-4 in the storing of aquatic species including but not limited to
6-5 shrimp, other crustaceans, finfish, mollusks, and other similar
6-6 creatures.
6-7 (b) Tangible personal property sold or used to be installed
6-8 as a component of an underground irrigation system is exempt from
6-9 the taxes imposed by this chapter if the system is exclusively used
6-10 or employed on a farm or ranch in the production of:
6-11 (1) food for human consumption;
6-12 (2) grass;
6-13 (3) feed or forage for:
6-14 (A) animal life the products of which ordinarily
6-15 constitute food for human consumption; or
6-16 (B) horses, mules, and work animals; or
6-17 (4) other agricultural products to be sold in the
6-18 regular course of business.
6-19 SECTION 1.08. Subchapter L, Chapter 151, Tax Code, is
6-20 amended by adding Section 151.7031 to read as follows:
6-21 Sec. 151.7031. FAILURE TO REPORT ON THREE OR MORE OCCASIONS;
6-22 CIVIL PENALTY. A person who is required to file a report under
6-23 this chapter, who fails to file the report under this chapter, and
6-24 who has on two or more previous occasions failed to file a timely
6-25 report under this chapter shall pay an additional penalty of $50.
6-26 The penalty provided by this section is assessed without regard to
6-27 whether the taxpayer subsequently files the report or whether no
7-1 taxes were due from the taxpayer for the reporting period under the
7-2 required report.
7-3 SECTION 1.09. Section 151.707, Tax Code, is amended to read
7-4 as follows:
7-5 Sec. 151.707. RESALE OR EXEMPTION CERTIFICATE; CRIMINAL
7-6 PENALTY. (a) A person commits an offense if the person:
7-7 (1) intentionally or knowingly makes a false entry in,
7-8 or a fraudulent alteration of, an exemption or resale certificate;
7-9 (2) makes, presents, or uses an exemption certificate
7-10 or resale certificate with knowledge that it is false and with the
7-11 intent that it be accepted as a valid resale or exemption
7-12 certificate; or
7-13 (3) intentionally conceals, removes, or impairs the
7-14 verity or legibility of an exemption or resale certificate or
7-15 unreasonably impedes the availability of an exemption or resale
7-16 certificate <gives a resale certificate to a seller for property
7-17 that the person knows, at the time of purchase, is purchased for
7-18 the purpose of use and not for the purpose of resale, lease, or
7-19 rental by the person to another in the regular course of business
7-20 or for transfer as an integral part of a taxable service performed
7-21 in the regular course of business>.
7-22 (b) An offense under Subsection (a)(1) or (a)(2) of this
7-23 section is:
7-24 (1) a Class C misdemeanor if the tax avoided by the
7-25 use of the exemption or resale certificate is less than $20;
7-26 (2) a Class B misdemeanor if the tax avoided by the
7-27 use of the exemption or resale certificate is $20 or more, but less
8-1 than $200;
8-2 (3) a Class A misdemeanor if the tax avoided by the
8-3 use of the exemption or resale certificate is $200 or more, but
8-4 less than $750;
8-5 (4) a felony of the third degree if the tax avoided by
8-6 the use of the exemption or resale certificate is $750 or more, but
8-7 less than $20,000; or
8-8 (5) a felony of the second degree if the tax avoided
8-9 by the use of the exemption or resale certificate is $20,000 or
8-10 more. <An offense under this section is a misdemeanor punishable
8-11 by a fine of not more than $500.>
8-12 SECTION 1.10. Subchapter A, Chapter 153, Tax Code, is
8-13 amended by adding Section 153.0061 to read as follows:
8-14 Sec. 153.0061. SUMMARY SUSPENSION OF PERMIT. (a) The
8-15 comptroller may suspend a person's permit without notice or a
8-16 hearing for the person's failure to comply with this chapter or a
8-17 rule adopted under this chapter if the person's continued operation
8-18 constitutes an immediate and substantial threat to the collection
8-19 of taxes imposed by this chapter and attributable to the person's
8-20 operation.
8-21 (b) If the comptroller summarily suspends a person's permit,
8-22 proceedings for a preliminary hearing before the comptroller or the
8-23 comptroller's representative must be initiated simultaneously with
8-24 the summary suspension. The preliminary hearing shall be set for a
8-25 date not later than 10 days after the date of the summary
8-26 suspension, unless the parties agree to a later date.
8-27 (c) At the preliminary hearing, the permit holder must show
9-1 cause why the permit should not remain suspended pending a final
9-2 hearing on suspension or revocation.
9-3 (d) The Administrative Procedure and Texas Register Act
9-4 (Article 6252-13a, Vernon's Texas Civil Statutes) does not apply to
9-5 a summary suspension under this section.
9-6 (e) To initiate a proceeding to suspend summarily a person's
9-7 permit, the comptroller shall serve notice on the permit holder
9-8 informing the permit holder of the right to a preliminary hearing
9-9 before the comptroller or the comptroller's representative and of
9-10 the time and place of the preliminary hearing. The notice must be
9-11 personally served on the permit holder or an officer, employee, or
9-12 agent of the permit holder, or sent by certified or registered
9-13 mail, return receipt requested, to the permit holder's mailing
9-14 address as it appears on the comptroller's records. The notice
9-15 must state the alleged violations that constitute the grounds for
9-16 summary suspension. The suspension is effective at the time the
9-17 notice is served. If the notice is served in person, the permit
9-18 holder shall immediately surrender the permit to the comptroller or
9-19 to the comptroller's representative. If notice is served by mail,
9-20 the permit holder shall immediately return the permit to the
9-21 comptroller.
9-22 (f) Section 153.006, governing hearings for permit
9-23 cancellation or refusal to issue a permit under this chapter,
9-24 governs a final administrative hearing under this section.
9-25 SECTION 1.11. Section 153.007, Tax Code, is amended to read
9-26 as follows:
9-27 Sec. 153.007. Enforcement of Permit Cancellation,
10-1 SUSPENSION, or Refusal. (a) The comptroller may examine any books
10-2 and records incident to the conduct of the business of a person
10-3 whose permit has been canceled or suspended on the person's failure
10-4 to file the reports required by this chapter or to remit all taxes
10-5 due. The comptroller shall issue an audit deficiency determination
10-6 of the amount of delinquent taxes, penalties, and interest,
10-7 containing a demand for payment. The deficiency determination
10-8 shall provide that if neither a payment is made nor a request for a
10-9 redetermination is filed within 30 days after the date of the
10-10 notice of the deficiency, the amount of the determination becomes
10-11 due and payable. If the amount is not paid on or before the 44th
10-12 day after service of the notice of the deficiency determination,
10-13 the bond or other security required under this chapter shall be
10-14 forfeited. The demand for payment shall be addressed to both the
10-15 surety or sureties and the person who owes the delinquency.
10-16 (b) If the forfeiture of the bond or other security does not
10-17 satisfy the delinquency, the comptroller shall certify the taxes,
10-18 penalty, and interest delinquent to the attorney general, who may
10-19 file suit against the person or his surety or both to collect the
10-20 amount due. After being given notice of an order of cancellation
10-21 or summary suspension, it shall be unlawful for any person to
10-22 continue to operate his business under a canceled or suspended
10-23 permit. The attorney general may file suit to enjoin the person
10-24 from continuing to operate under his permit until the person's
10-25 permit is reissued by the comptroller.
10-26 (c) An appeal from an order of the comptroller canceling or
10-27 suspending or refusing the issuance or reissuance of a permit may
11-1 be taken to a district court of Travis County by the aggrieved
11-2 permittee or applicant. The trial shall be de novo under the same
11-3 rules as ordinary civil suits, except that:
11-4 (1) an appeal must be perfected and filed within 30
11-5 days after the effective date of the order, decision, or ruling of
11-6 the comptroller;
11-7 (2) the trial of the case shall begin within 10 days
11-8 after its filing; and
11-9 (3) the order, decision, or ruling of the comptroller
11-10 may be suspended or modified by the court pending a trial on the
11-11 merits.
11-12 SECTION 1.12. Section (1), Article 8802, Revised Statutes,
11-13 is amended to read as follows:
11-14 (1) Every "owner", save an owner holding an import license
11-15 and holding coin-operated machines solely for re-sale, who
11-16 exhibits, displays, or who permits to be exhibited or displayed in
11-17 this State any "coin-operated machine" shall pay, and there is
11-18 hereby levied on each "coin-operated machine", as defined herein in
11-19 Article 8801, except as are exempt herein, an annual occupation tax
11-20 of $60.00. The tax shall be paid to the comptroller by cashier's
11-21 check or money order. The annual tax levied by this chapter may be
11-22 collected by the comptroller on a quarterly basis. The comptroller
11-23 may establish procedures for quarterly collection and set due dates
11-24 for the tax payments. The tax due from the owner of a
11-25 coin-operated machine first exhibited or displayed in this State
11-26 later than March 31 shall be prorated on a quarterly basis, with
11-27 one-fourth of the annual tax due for each quarter or portion of a
12-1 quarter remaining in the calendar year. No refund or credit of the
12-2 annual tax levied by this chapter may be allowed to any owner who
12-3 ceases the exhibition or display of any coin-operated machine prior
12-4 to the end of any calendar year. Subtitle B, Title 2, Tax Code,
12-5 applies to the administration, collection, and enforcement of the
12-6 taxes, penalties, and interest imposed by this chapter.
12-7 SECTION 1.13. Section (2), Article 8807, Revised Statutes,
12-8 is amended to read as follows:
12-9 (2) If any individual, company, corporation or association
12-10 who owns, operates, exhibits or displays any coin-operated machine
12-11 in this State, shall violate any provision of this Chapter or any
12-12 rule and regulation promulgated hereunder, the Comptroller may
12-13 investigate the violation and may impose <seek> sanctions,
12-14 including suspension or revocation of a license, permit, or
12-15 registration certificate issued under this chapter.
12-16 SECTION 1.14. Article 8811, Revised Statutes, is amended to
12-17 read as follows:
12-18 Art. 8811. VIOLATIONS OF ACT; PENALTY; ENFORCEMENT <SUIT TO
12-19 RECOVER PENALTY>. If any "owner" of a coin-operated machine within
12-20 this State shall (a) permit any coin-operated machine under his
12-21 control to be operated, exhibited or displayed within this State
12-22 without said permit being permanently attached thereto, or (b) if
12-23 any person shall exhibit or display within this State any
12-24 coin-operated machine without having annexed or attached thereto a
12-25 permit issued by the Comptroller showing the payment of the tax due
12-26 thereon for the current year, or (c) if any person exhibits or
12-27 displays a coin-operated machine that is not registered with the
13-1 Comptroller, or (d) shall fail to keep such records, or (e) shall
13-2 refuse or fail to present such records for inspection upon the
13-3 demand of the Comptroller or an authorized representative of the
13-4 Comptroller, or (f) if any person in this State shall use any
13-5 artful device or deceptive practice to conceal any violation of
13-6 this Chapter, or (g) mislead the Comptroller or an authorized
13-7 representative of the Comptroller in the enforcement of this
13-8 Chapter, or (h) if any person in this State shall fail to comply
13-9 with the provisions of this Chapter, or violate the same, or (i) if
13-10 any person in this State shall fail to comply with the rules and
13-11 regulations promulgated by the Comptroller, or violate the same,
13-12 the Comptroller in addition to the other remedies provided in this
13-13 Chapter may assess a penalty in the sum of not less than Fifty
13-14 Dollars ($50) <Five Dollars ($5)> nor more than Two Thousand
13-15 Dollars ($2,000) <Five Hundred Dollars ($500)>. Each day's
13-16 violation shall constitute a separate offense and incur another
13-17 penalty, which, if not paid may be recovered by the Comptroller in
13-18 any manner available for the recovery of delinquent taxes under
13-19 Subtitle B, Title 2, Tax Code, or in a suit by the Attorney General
13-20 of this State in a court of competent jurisdiction in Travis
13-21 County, Texas<, or any court having jurisdiction>.
13-22 SECTION 1.15. Subdivision (2), Section 8, Article 8817,
13-23 Revised Statutes, is amended to read as follows:
13-24 (2) A person who knowingly violates Subdivision (1) of this
13-25 Section is guilty of a Class A <B> misdemeanor. A person who
13-26 knowingly secures or attempts to secure a license under this
13-27 Article by fraud, misrepresentation, or subterfuge is guilty of a
14-1 felony of the second <third> degree.
14-2 SECTION 1.16. Section 17, Article 8817, Revised Statutes, is
14-3 amended to read as follows:
14-4 Sec. 17. REMOVAL OF PERMIT PROHIBITED; PENALTY. (1) A
14-5 person may not <intentionally> remove or cause to be removed a
14-6 current tax permit from a music or skill or pleasure coin-operated
14-7 machine.
14-8 (2) A person who violates this Section is guilty of a Class
14-9 B <C> misdemeanor.
14-10 SECTION 1.17. Subdivision (1), Section 20, Article 8817,
14-11 Revised Statutes, is amended to read as follows:
14-12 (1) The Comptroller may refuse to issue or renew a license
14-13 or registration certificate or may revoke or suspend a license or
14-14 registration certificate issued pursuant to the authority of this
14-15 Article if:
14-16 (a) the licensee or applicant has <intentionally>
14-17 violated a provision of this Article or a regulation promulgated
14-18 pursuant to the authority of this Article;
14-19 (b) the licensee or applicant has <intentionally>
14-20 failed to answer a question, or <intentionally> made a false
14-21 statement in, or in connection with, his application or renewal;
14-22 (c) the licensee or applicant extends credit without
14-23 registering his intent to do so with the consumer credit
14-24 commission;
14-25 (d) the licensee or applicant uses coercion to
14-26 accomplish a purpose or to engage in conduct regulated by the
14-27 Comptroller;
15-1 (e) a contract or agreement between the licensee or
15-2 applicant and a location owner contains a restriction, of any kind
15-3 and to any degree, on the right of the location owner to purchase,
15-4 agree to purchase, or use a product, commodity, or service not
15-5 regulated under the terms of this Article; or
15-6 (f) failure to suspend or revoke the license would be
15-7 contrary to the intent and purpose of this Article.
15-8 SECTION 1.18. Article 8817, Revised Statutes, is amended by
15-9 adding Section 27 to read as follows:
15-10 Sec. 27. SUITS BY THE ATTORNEY GENERAL. (1) On request by
15-11 the Comptroller, the attorney general may file suit for an
15-12 injunction prohibiting a person from engaging in business to
15-13 manufacture, own, buy, sell, or rent, lease, trade, lend, or
15-14 furnish to another, or repair, maintain, service, transport within
15-15 the state, store, or import a music coin-operated machine or a
15-16 skill or pleasure coin-operated machine without a license or
15-17 registration certificate issued under this Article.
15-18 (2) The district courts of Travis County, Texas, have
15-19 exclusive, original jurisdiction of a suit brought under this
15-20 section.
15-21 SECTION 1.19. The following provisions of the Tax Code are
15-22 repealed:
15-23 (1) Section 151.502; and
15-24 (2) Section 151.706.
15-25 SECTION 1.20. This article takes effect September 1, 1993,
15-26 and applies to the collection and enforcement of taxes imposed
15-27 before, on, or after the effective date of this article.
16-1 ARTICLE 2
16-2 SECTION 2.01. Section 151.401, Tax Code, is amended to read
16-3 as follows:
16-4 Sec. 151.401. Tax Due Dates. (a) The taxes imposed by this
16-5 chapter on the sale, use, storage, or other consumption of taxable
16-6 items on or after August 1 and on or before August 15 are due and
16-7 payable on or before August 20 by a taxpayer who pays by electronic
16-8 funds transfer unless:
16-9 (1) the taxpayer qualifies as a quarterly filer under
16-10 Subsection (c);
16-11 (2) the taxpayer prepays the tax quarterly as
16-12 permitted by Section 151.424; or
16-13 (3) the comptroller waives the requirement for all
16-14 affected taxpayers.
16-15 (b) The taxes imposed by this chapter other than those
16-16 described by Subsection (a) are due and payable to the comptroller
16-17 on or before the 20th day of the month following the end of each
16-18 calendar month unless a taxpayer qualifies as a quarterly filer
16-19 under Subsection (c) <(b) of this section> or unless the taxpayer
16-20 prepays the tax on a quarterly basis as permitted by Section
16-21 151.424 <of this code>.
16-22 (c) <(b)> If a taxpayer owes less than $500 for a calendar
16-23 month or $1,500 for a calendar quarter, the taxes are due and
16-24 payable on the 20th day of the month following the end of the
16-25 calendar quarter.
16-26 SECTION 2.02. Section 151.402, Tax Code, is amended to read
16-27 as follows:
17-1 Sec. 151.402. TAX REPORT DATES. (a) Except as provided by
17-2 Subsection (b) of this section, a <A> tax report required by this
17-3 chapter for a reporting period is due on the same date that the tax
17-4 payment for the period is due as provided by Section 151.401 <of
17-5 this code>.
17-6 (b) A tax report for taxes required by Section 151.401(a) to
17-7 be paid on or before August 20 is due on or before the 20th day of
17-8 the following month.
17-9 SECTION 2.03. Section 171.202, Tax Code, is amended by
17-10 amending Subsections (c) and (d) and adding Subsections (e), (f),
17-11 (g), and (h) to read as follows:
17-12 (c) The comptroller shall grant an extension of time to a
17-13 corporation that is not required by rule to make its tax payments
17-14 by electronic funds transfer for the filing of a report required by
17-15 this section to any date on or before the next November 15, if a
17-16 corporation:
17-17 (1) requests the extension, on or before May 15, on a
17-18 form provided by the comptroller; and
17-19 (2) remits with the request:
17-20 (A) not less than 90 percent of the amount of
17-21 tax reported as due on the report filed on or before November 15;
17-22 or
17-23 (B) 100 percent of the tax paid in the previous
17-24 year.
17-25 (d) In the case of a taxpayer whose previous return was its
17-26 initial report, the optional payment provided under Subsection
17-27 (c)(2)(B) or (e)(2)(B) <Paragraph (B) of Subdivision (2) of
18-1 Subsection (c) of this section> must be equal to the greater of:
18-2 (1) an amount produced by multiplying the net taxable
18-3 capital, as required to be shown on the initial report, by the rate
18-4 of tax in Section 171.002(a)(1) which is effective January 1 of the
18-5 year in which the report is due; or
18-6 (2) the amount paid on net taxable earned surplus, as
18-7 required on the initial report.
18-8 (e) The comptroller shall grant an extension of time for the
18-9 filing of a report required by this section by a corporation
18-10 required by rule to make its tax payments by electronic funds
18-11 transfer to any date on or before the next August 15, if the
18-12 corporation:
18-13 (1) requests the extension, on or before May 15, on a
18-14 form provided by the comptroller; and
18-15 (2) remits with the request:
18-16 (A) not less than 90 percent of the amount of
18-17 tax reported as due on the report filed on or before August 15; or
18-18 (B) 100 percent of the tax paid in the previous
18-19 year.
18-20 (f) The comptroller shall grant an extension of time to a
18-21 corporation required by rule to make its tax payments by electronic
18-22 funds transfer for the filing of a report due on or before August
18-23 15 to any date on or before the next November 15, if the
18-24 corporation:
18-25 (1) requests the extension, on or before August 15, on
18-26 a form provided by the comptroller; and
18-27 (2) remits with the request the difference between the
19-1 amount remitted under Subsection (e) and 100 percent of the amount
19-2 of tax reported as due on the report filed on or before November
19-3 15.
19-4 (g) If an amount paid pursuant to Subsection (f)(2) is no
19-5 more than 10 percent less than the amount reported as due on the
19-6 report filed on or before November 15, no penalty shall be due for
19-7 the underpayment.
19-8 (h) If the sum of the amounts paid under Subsections (e)(2)
19-9 and (f)(2) is at least 99 percent of the amount reported as due on
19-10 the report filed on or before November 15, penalties for
19-11 underpayment with respect to the amount paid under Subsection
19-12 (f)(2) are waived.
19-13 SECTION 2.04. (a) This article takes effect September 1,
19-14 1994.
19-15 (b) Section 2.01 of this article applies only to the payment
19-16 of taxes that are due and payable on or after the effective date of
19-17 this article. Section 2.01 of this article expires January 1,
19-18 1996.
19-19 (c) Section 2.03 of this article applies only to the
19-20 extension of an annual report required by Section 171.202, Tax
19-21 Code, to be filed on or after the effective date of this article.
19-22 ARTICLE 3
19-23 SECTION 3.01. Subchapter F, Chapter 153, Tax Code, is
19-24 amended by adding Section 153.5015 to read as follows:
19-25 Sec. 153.5015. DELAY IN ALLOCATION OF TAXES.
19-26 (a) Notwithstanding any other law, the comptroller shall allocate
19-27 and deposit as soon as practicable after September 5, 1995, and no
20-1 later than September 10, 1995:
20-2 (1) the unclaimed refunds of gasoline taxes under
20-3 Section 153.502 for June, July, and August, 1995;
20-4 (2) the gasoline taxes collected under Subchapter B
20-5 for June, July, and August, 1995;
20-6 (3) the diesel fuel taxes collected under Subchapter C
20-7 for June, July, and August, 1995; and
20-8 (4) the liquefied gas taxes collected under Subchapter
20-9 D for June, July, and August, 1995.
20-10 (b) This section expires October 1, 1995.
20-11 SECTION 3.02. This article takes effect September 1, 1993.
20-12 ARTICLE 4
20-13 SECTION 4.01. Chapter 31, Human Resources Code, is amended
20-14 by adding Subchapter D to read as follows:
20-15 SUBCHAPTER D. TAX REFUND FOR WAGES PAID TO EMPLOYEE
20-16 RECEIVING FINANCIAL ASSISTANCE
20-17 Sec. 31.071. DEFINITION. In this subchapter, "wages" has
20-18 the meaning assigned by Sections 51(c)(1), (2), and (3), Internal
20-19 Revenue Code of 1986 (26 U.S.C. Section 51).
20-20 Sec. 31.072. TAX REFUND VOUCHER. (a) The department shall
20-21 issue a tax refund voucher in the amount allowed by this subchapter
20-22 and subject to the restrictions imposed by this subchapter to a
20-23 person that meets the eligibility requirements under this
20-24 subchapter.
20-25 (b) A person issued a tax refund voucher may, subject to the
20-26 provisions of this subchapter, apply for the amount of the refund
20-27 of a tax that is paid by the person to this state if the tax is
21-1 administered by the comptroller and deposited to the credit of the
21-2 general revenue fund without dedication.
21-3 Sec. 31.073. AMOUNT OF REFUND; LIMITATION. (a) The amount
21-4 of the refund allowed under this subchapter is equal to 20 percent
21-5 of the total wages, up to a maximum of $10,000 in wages for each
21-6 employee, paid or incurred by a person for services rendered by an
21-7 employee of the person during the period beginning with the date
21-8 the employee begins work for the person and ending on the first
21-9 anniversary of that date.
21-10 (b) The refund claimed for a calendar year may not exceed
21-11 the amount of net tax paid by the person to this state, after any
21-12 other applicable tax credits, in that calendar year.
21-13 Sec. 31.074. ELIGIBILITY. A person is eligible for the
21-14 refund for wages paid or incurred by the person, during each
21-15 calendar year for which the refund is claimed, only if:
21-16 (1) the wages paid or incurred by the person are for
21-17 services of an employee who is:
21-18 (A) a resident of this state; and
21-19 (B) a recipient of financial assistance and
21-20 services in accordance with this chapter;
21-21 (2) the person satisfies the certification
21-22 requirements under Section 31.075; and
21-23 (3) the person provides and pays for the benefit of
21-24 the employee at least 80 percent of the cost of major medical
21-25 health insurance coverage that provides for:
21-26 (A) a maximum $300 deductible to the employee;
21-27 and
22-1 (B) payment by the insurance provider of at
22-2 least 70 percent of insurance claims during the claim year in
22-3 excess of the deductible.
22-4 Sec. 31.075. CERTIFICATION. A person is not eligible for
22-5 the refund for wages paid or incurred by the person unless the
22-6 person has received a written certification from the appropriate
22-7 state agency responsible for certification that the employee is a
22-8 recipient of financial assistance and services on or before the day
22-9 the employee begins employment with the person.
22-10 Sec. 31.076. APPLICATION FOR REFUND; ISSUANCE. (a) A
22-11 person may apply for a tax refund voucher for wages paid an
22-12 employee in a calendar year only on or after January 1 and before
22-13 April 1 of the following calendar year.
22-14 (b) The department shall promulgate a form for the
22-15 application for the tax refund voucher. A person must use this
22-16 form in applying for the refund.
22-17 (c) On issuance of the tax refund voucher to the person by
22-18 the department, the person may apply the voucher against a tax paid
22-19 by the person to this state only for the calendar year for which
22-20 the voucher is issued.
22-21 SECTION 4.02. Subchapter C, Chapter 111, Tax Code, is
22-22 amended by adding Section 111.109 to read as follows:
22-23 Sec. 111.109. TAX REFUND FOR WAGES PAID TO EMPLOYEE
22-24 RECEIVING AID TO FAMILIES WITH DEPENDENT CHILDREN. The comptroller
22-25 shall issue a refund for a tax paid by a person to this state in
22-26 the amount of a tax refund voucher issued by the Texas Department
22-27 of Human Services under Subchapter D, Chapter 31, Human Resources
23-1 Code, subject to the provisions of that subchapter.
23-2 SECTION 4.03. (a) This article takes effect January 1,
23-3 1994.
23-4 (b) A person may claim the refund under Subchapter D,
23-5 Chapter 31, Human Resources Code, as added by this article, only
23-6 for any wages paid or incurred on or after the effective date of
23-7 this article and only on a tax due on or after that date.
23-8 ARTICLE 5
23-9 SECTION 5.01. Section 156.001, Tax Code, is amended to read
23-10 as follows:
23-11 Sec. 156.001. DEFINITION <DEFINITIONS>. In this chapter,
23-12 "hotel"<:>
23-13 <(1) "Hotel"> means a building in which members of the
23-14 public obtain sleeping accommodations for consideration. The term
23-15 includes a hotel, motel, tourist home, tourist house, tourist
23-16 court, lodging house, inn, or rooming house, but does not include a
23-17 hospital, sanitarium, or nursing home.
23-18 <(2) "Quarterly period" means a quarter of the
23-19 calendar year. The first quarter is composed of the months of
23-20 January, February, and March; the second quarter is composed of the
23-21 months of April, May, and June; the third quarter is composed of
23-22 the months of July, August, and September; and the fourth quarter
23-23 is composed of the months of October, November, and December.>
23-24 SECTION 5.02. Section 156.151, Tax Code, is amended to read
23-25 as follows:
23-26 Sec. 156.151. REPORT AND PAYMENT. (a) A <On the last day
23-27 of January, April, July, and October, a> person required to collect
24-1 the tax imposed by this chapter shall pay the comptroller the tax
24-2 collected during the preceding reporting <quarterly> period and at
24-3 the same time shall file with the comptroller a report stating:
24-4 (1) the total amount of the payments made for rooms at
24-5 the person's hotel during the preceding reporting <quarterly>
24-6 period;
24-7 (2) the amount of the tax collected by the person
24-8 during the preceding reporting <quarterly> period; and
24-9 (3) other information that the comptroller requires to
24-10 be in the report.
24-11 (b) Except as provided by Subsection (c), each calendar
24-12 month is a reporting period and the taxes imposed by and collected
24-13 under this chapter are due and payable to the comptroller on or
24-14 before the 20th day of the month following the end of each calendar
24-15 month.
24-16 (c) If a taxpayer owes less than $500 for a calendar month
24-17 or $1,500 for a calendar quarter, the taxpayer qualifies as a
24-18 quarterly filer having a reporting period of a calendar quarter and
24-19 the taxes are due and payable on the 20th day after the end of the
24-20 calendar quarter.
24-21 SECTION 5.03. Section 156.153, Tax Code, is amended to read
24-22 as follows:
24-23 Sec. 156.153. REIMBURSEMENT FOR TAX COLLECTION. The person
24-24 required to file a report under this chapter may deduct and
24-25 withhold from the taxes otherwise due to the state on the monthly
24-26 or quarterly return, as reimbursement for the cost of collecting
24-27 the tax, one percent of the amount of the tax due as shown on the
25-1 report. If taxes due under this chapter are not paid to the state
25-2 within the time required or if the person required to file a report
25-3 fails to file the report when due, the person forfeits the claim to
25-4 reimbursement that could have been taken if the tax had been paid
25-5 or the report filed when due.
25-6 SECTION 5.04. This article takes effect October 1, 1994.
25-7 ARTICLE 6
25-8 SECTION 6.01. Subsection (b), Section 6, Article 4.10,
25-9 Insurance Code, is amended to read as follows:
25-10 (b) A semiannual <quarterly> prepayment of premium tax must
25-11 be made on March 1st and August 1st<, May 15th, August 15th, and
25-12 November 15th> by all insurers with net tax liability for the
25-13 previous calendar year in excess of $1,000. The tax paid on each
25-14 date must equal one-half <one-fourth> of the total premium tax paid
25-15 for the previous calendar year. Should no premium tax have been
25-16 paid during the previous calendar year, the semiannual <quarterly>
25-17 payment shall equal the tax which would be owed on the aggregate of
25-18 the gross premium receipts for <during> the two previous calendar
25-19 quarters <quarter ending March 31st, June 30th, September 30th, or
25-20 December 31st> at the minimum tax rate specified by law. The State
25-21 Board of Insurance is authorized to certify for refund to the State
25-22 Treasurer any overpayment of premium taxes that results from the
25-23 semiannual <quarterly> prepayment system herein established.
25-24 SECTION 6.02. Subsection (a), Section 13, Article 4.11,
25-25 Insurance Code, is amended to read as follows:
25-26 (a) A semiannual <quarterly> prepayment of premium tax must
25-27 be made on March 1 and August 1<, May 15, August 15, and November
26-1 15> by all insurers with net tax liability for the previous
26-2 calendar year in excess of $1,000. The tax paid on each date must
26-3 equal one-half <one-fourth> of the total premium tax paid for the
26-4 previous calendar year. Should no premium tax have been paid
26-5 during the previous calendar year, the semiannual <quarterly>
26-6 payment shall equal the tax which would be owed on the aggregate of
26-7 the gross premium receipts for <during> the two previous calendar
26-8 quarters <quarter ending March 31, June 30, September 30, or
26-9 December 31> at the minimum tax rate specified by law. The State
26-10 Board of Insurance is authorized to certify for refund to the state
26-11 treasurer any overpayment of premium taxes that results from the
26-12 semiannual <quarterly> prepayment system herein established.
26-13 SECTION 6.03. Subsection (b), Section 3, Article 9.59,
26-14 Insurance Code, is amended to read as follows:
26-15 (b) A semiannual <quarterly> prepayment of premium tax must
26-16 be made on March 1 and August 1<, May 15, August 15, and November
26-17 15> by all insurers with net tax liability for the previous
26-18 calendar year of more than $1,000. The tax paid on each date must
26-19 equal one-half <one-fourth> of the total premium tax paid for the
26-20 previous calendar year. If no premium tax has been paid during the
26-21 previous calendar year, the semiannual <quarterly> payment shall
26-22 equal the tax that would be owed on the aggregate of the gross
26-23 premium receipts for <during> the two previous calendar quarters
26-24 <quarter ending March 31, June 30, September 30, or December 31> at
26-25 the minimum tax rate specified by law. The commissioner may
26-26 certify for refund to the state treasurer any overpayment of
26-27 premium taxes that results from the semiannual <quarterly>
27-1 prepayment system established by this subsection.
27-2 SECTION 6.04. Article 9.46, Insurance Code, is amended to
27-3 read as follows:
27-4 Art. 9.46. MAINTENANCE FEE; DISPOSITION OF UNEXPENDED
27-5 BALANCE <TAX ON GROSS PREMIUMS>. The State of Texas by and through
27-6 the State Board of Insurance shall charge an annual maintenance
27-7 fee necessary to pay the expenses of the regulation of title
27-8 insurers and title insurance agents during the succeeding year.
27-9 The State Board of Insurance shall determine the rate of assessment
27-10 and collect a maintenance fee in an amount not to exceed one
27-11 percent of all amounts defined to be premium in this chapter. This
27-12 fee is not a tax and shall be reported and paid separately from
27-13 premium and retaliatory taxes <annually determine the rate of
27-14 assessment on an annual or semiannual basis, as determined by the
27-15 Board, and collect a maintenance tax in an amount not to exceed one
27-16 percent of the correctly reported gross title insurance premiums of
27-17 all authorized insurers writing title insurance in this state. The
27-18 tax required by this article is in addition to all other taxes now
27-19 imposed or that may be subsequently imposed and that are not in
27-20 conflict with this article>. The State Board of Insurance, after
27-21 taking into account the unexpended funds produced by this fee
27-22 <tax>, if any, shall adjust the rate of assessment each year to
27-23 produce the amount of funds that it estimates will be necessary to
27-24 pay all the expenses of regulating title insurance during the
27-25 succeeding year. The fees <taxes> collected shall be deposited in
27-26 the State Treasury to the credit of the State Board of Insurance
27-27 operating fund and shall be spent as authorized by legislative
28-1 appropriation only on warrants issued by the comptroller of public
28-2 accounts pursuant to duly certified requisitions of the State Board
28-3 of Insurance. The fee is included in the division of premiums and
28-4 shall not be separately charged to the title insurance agent. The
28-5 State Board of Insurance shall <may elect to> collect on a
28-6 semiannual basis the fee <tax> assessed under this article only
28-7 from insurers whose <tax> liability under this article for the
28-8 previous <tax> year was $2,000 or more. The State Board of
28-9 Insurance may prescribe and adopt reasonable rules to implement
28-10 such payments as it deems advisable, not inconsistent with this
28-11 article.
28-12 SECTION 6.05. This article takes effect September 1, 1993.
28-13 Sections 6.01, 6.02, and 6.03 apply only to the prepayment of
28-14 premium taxes beginning with prepayments that become due on or
28-15 after March 1, 1994. Prepayment of premium taxes before
28-16 March 1, 1994, is governed by the law as it existed immediately
28-17 before the effective date of this article and that law is continued
28-18 in effect for that purpose.
28-19 ARTICLE 7
28-20 SECTION 7.01. Subsection (a), Section 112.052, Tax Code, is
28-21 amended to read as follows:
28-22 (a) A person may bring suit against the state to recover an
28-23 occupation, excise, gross receipts, franchise, license, or
28-24 privilege tax or fee required to be paid to the state if the person
28-25 has first paid the tax under protest as required by Section 112.051
28-26 of this code.
28-27 SECTION 7.02. Subsection (a), Section 112.058, Tax Code, is
29-1 amended to read as follows:
29-2 (a) Except as provided in Subsections (b) and (c) of this
29-3 section, payments made under protest are to be handled as follows:
29-4 (1) An officer who receives payments made under
29-5 protest as required by Section 112.051 of this code shall each day
29-6 send to the treasurer the payments, a list of the persons making
29-7 the payments, and a written statement that the payments were made
29-8 under protest.
29-9 (2) The treasurer shall, immediately on receipt,
29-10 credit the payments to each fund to which the tax or fee paid under
29-11 protest is allocated by law <the suspense account in accordance
29-12 with Section 404.062(c), Government Code, and deposit the payments
29-13 in state depositories bearing interest in the same manner that
29-14 other funds are required to be placed in state depositories at
29-15 interest>.
29-16 (3) The treasurer shall maintain detailed records of
29-17 payments made under protest <allocate the interest earned on these
29-18 funds and credit the amount allocated to the suspense account until
29-19 the status of the funds is finally determined>.
29-20 (4) A payment under protest <that is placed in a fund
29-21 or an account other than a suspense account> bears pro rata
29-22 interest. The pro rata interest is the amount of interest that
29-23 would be due if the amount had been placed in the suspense account
29-24 of the treasurer.
29-25 SECTION 7.03. Section 112.059, Tax Code, is amended to read
29-26 as follows:
29-27 Sec. 112.059. Disposition of Protest Payments Belonging to
30-1 the State. If a suit authorized by this subchapter is not brought
30-2 in the manner or within the time required or if the suit is
30-3 properly filed and results in a final determination that a tax
30-4 payment or a portion of a tax payment made under protest, including
30-5 the pro rata amount of interest earned on the payment, belongs to
30-6 the state, the treasurer shall ensure that <transfer> the proper
30-7 amount has been deposited <from the suspense account> to the credit
30-8 of the appropriate state fund.
30-9 SECTION 7.04. Subsection (c), Section 112.060, Tax Code, is
30-10 amended to read as follows:
30-11 (c) Each tax refund warrant shall be drawn against each fund
30-12 to which the taxes paid under protest are allocated by law <the
30-13 suspense account>. If there are not sufficient funds in each fund
30-14 to which the taxes paid under protest are allocated by law <the
30-15 suspense account> to pay a refund required to be paid under
30-16 Subsection (a) of this section, then the comptroller shall draw the
30-17 warrant against the General Revenue Fund or other funds from which
30-18 refund appropriations may be made, as the comptroller determines
30-19 appropriate.
30-20 SECTION 7.05. Subsection (d), Section 112.101, Tax Code, is
30-21 amended to read as follows:
30-22 (d) The public official shall deliver a payment or bond
30-23 required by Subsection (a)(2) to the treasurer. The treasurer
30-24 shall deposit a payment made under Subsection (a)(2)(A) to the
30-25 credit of each fund to which the tax, fee, or penalty is allocated
30-26 by law. A payment made under Subsection (a)(2)(A) bears pro rata
30-27 interest. The pro rata interest is the amount of interest that
31-1 would be due if the amount had been placed into the suspense
31-2 account of the treasurer.
31-3 SECTION 7.06. Subsection (a), Section 112.104, Tax Code, is
31-4 amended to read as follows:
31-5 (a) If an applicant for an order or injunction granted under
31-6 this subchapter has not filed a bond as required by Section
31-7 112.101(a)(2)(B) of this code, the applicant shall pay to <into the
31-8 suspense account of> the treasurer all taxes, fees, and penalties
31-9 to which the order or injunction applies as those taxes, fees, and
31-10 penalties accrue and before they become delinquent. The treasurer
31-11 shall credit the payment to each fund to which the tax, fee, or
31-12 penalty is allocated by law.
31-13 SECTION 7.07. Subsection (a), Section 112.106, Tax Code, is
31-14 amended to read as follows:
31-15 (a) If a restraining order or injunction is finally
31-16 dismissed or dissolved, the treasurer shall:
31-17 (1) if a bond was filed, make demand on the applicant
31-18 and the applicant's sureties for the immediate payment of all
31-19 taxes, fees, and penalties due the state; or
31-20 (2) if no bond was filed, ensure that <transfer> the
31-21 proper amount of taxes, fees, and penalties has been deposited
31-22 <from the suspense account> to the credit of the proper fund to
31-23 which the taxes, fees, and penalties are allocated.
31-24 SECTION 7.08. Section 112.107, Tax Code, is amended to read
31-25 as follows:
31-26 Sec. 112.107. Credit or Refund. If the final judgment in a
31-27 suit under this subchapter maintains the right of the applicant for
32-1 a temporary or permanent injunction to prevent the assessment or
32-2 collection of the tax, the treasurer shall credit the money
32-3 deposited <in the suspense account> under this subchapter, with the
32-4 pro rata interest earned on the money, against any other amount
32-5 finally determined to be due to the state from the applicant
32-6 according to information in the custody of the treasurer and shall
32-7 refund the remainder to the applicant.
32-8 SECTION 7.09. Subsection (a), Section 403.202, Government
32-9 Code, is amended to read as follows:
32-10 (a) If a person who is required to pay to any department of
32-11 the state government an occupation, excise, gross receipts,
32-12 franchise, license, or privilege tax or fee, other than a tax or
32-13 fee to which Subchapter B, Chapter 112, Tax Code, applies or a tax
32-14 or other amount imposed under the Texas Unemployment Compensation
32-15 Act (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)
32-16 contends that the tax or fee is unlawful or that the department may
32-17 not legally demand or collect the tax or fee, the person shall pay
32-18 the amount claimed by the state, and if the person intends to bring
32-19 suit under this subchapter, the person must submit with the payment
32-20 a protest.
32-21 SECTION 7.10. Subsection (a), Section 403.203, Government
32-22 Code, is amended to read as follows:
32-23 (a) A person may bring suit against the state to recover an
32-24 occupation, excise, gross receipts, franchise, license, or
32-25 privilege tax or fee covered by this subchapter and required to be
32-26 paid to the state if the person has first paid the tax under
32-27 protest as required by Section 403.202.
33-1 SECTION 7.11. Subsection (d), Section 403.212, Government
33-2 Code, is amended to read as follows:
33-3 (d) A state official who receives a payment or bond under
33-4 Subsection (a)(2) shall deliver the payment or bond to the
33-5 treasurer. The treasurer shall deposit a payment made under
33-6 Subsection (a)(2)(A) to the credit of each fund to which the tax,
33-7 fee, or penalty is allocated by law <into the suspense account of
33-8 the treasurer>.
33-9 SECTION 7.12. On the effective date of this article the
33-10 state treasurer shall transfer all protested or contested amounts
33-11 received under Subsection (a), Section 112.058, or Subsection (d),
33-12 Section 112.101, Tax Code, or Subsection (d), Section 403.212,
33-13 Government Code, that are in a suspense account, including accrued
33-14 interest on the amounts, to the credit of each appropriate fund to
33-15 which the taxes, fees, or penalties being protested or contested
33-16 are allocated by law.
33-17 SECTION 7.13. This article takes effect September 1, 1993.
33-18 ARTICLE 8
33-19 SECTION 8.01. The importance of this legislation and the
33-20 crowded condition of the calendars in both houses create an
33-21 emergency and an imperative public necessity that the
33-22 constitutional rule requiring bills to be read on three several
33-23 days in each house be suspended, and this rule is hereby suspended.