SRC-TBR S.B. 640 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 640
77R5530 SMJ-DBy: Duncan
Finance
2/16/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Texas Comptroller of Public Accounts collects 63 different
state taxes, 39 of which can be paid using electronic funds transfer (EFT).
As proposed, S.B. 640 would require taxpayers owing more than $100,000 in
annual taxes to make payments via EFT. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the comptroller of public
accounts in Section 1 (Sections 111.0625 and 111.0626, Tax Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 111B, Tax Code, by adding Sections 111.0625 and
111.0626, as follows: 

Sec. 111.0625.  ELECTRONIC TRANSFER OF CERTAIN PAYMENTS.  Requires the
comptroller by rule to require a taxpayer who paid $100,000 or more during
the preceding fiscal year in a category of payments required under this
title to transfer payments in that category by means of electronic funds
transfer in accordance with Section 404.095 (Electronic Transfer of Certain
Payments), Government Code, if the comptroller reasonably anticipates the
person will pay at least that amount during the current fiscal year. 

Sec. 111.0626.  ELECTRONIC FILING OF CERTAIN REPORTS.  (a)  Requires the
comptroller by rule to require electronic filing of a report required under
Chapter 151, 201, or 202, or an international fuel tax agreement, for a
taxpayer who is also required under Section 111.0625 to transfer by
electronic funds transfer. 

(b)  Authorizes the comptroller to adopt rules requiring electronic filing
of a report not described by Subsection (a). 

(c)  Provides that a rule adopted under this section must provide for a
waiver from the electronic filing requirement for a taxpayer who cannot
comply. 

SECTION 2.  Amends Section 111.063, Tax Code, as follows:

Sec. 111.063.  New heading: PENALTY FOR FAILURE TO USE ELECTRONIC TRANSFERS
AND FILINGS. 

(a)(2)  Authorizes the comptroller to impose a penalty of five percent of
the tax due on a person who is required under Section 111.0626 to file a
report electronically and does not file the report electronically. 

(b)  Provides that the penalties provided by this section are in addition
to any other penalty provided by law. 
 
SECTION 3.  Effective date:  upon passage or September 1, 2001.