HBA-KDB S.B. 848 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 848
By: Ellis, Rodney
Ways & Means
3/19/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, the interest on state taxes paid under protest is held in a
suspense fund until the underlying tax case is resolved.  If the state
loses the case, the taxpayer is refunded the original tax payment with
interest. If the state wins the case, the tax payment is credited to the
fund for which it was originally intended.  The interest remains in the
suspense fund, but it cannot be certified for the state's operating budget
causing millions of dollars to be unavailable until protests are resolved.
If accumulated interest is treated like the protest payment, it may be
certified for the state's operating budget.  Senate Bill 848 provides that
the accumulated interest is deposited into the fund to which the tax is
allocated, rather than the suspense fund. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 848 amends the Government Code to remove the provision
regarding the portion of  funds required by other statutes to be credited
on a pro rata basis to protested payments. 

The bill applies only to the accumulated interest that remains credited to
the suspense account of the comptroller of public accounts (comptroller)
into which, under former law, the comptroller deposited protested payments
of taxes, fees, and penalties made as a condition of suits brought by
persons owing taxes or fees or suits brought by taxpayers.  The bill
requires the comptroller to transfer all remaining amounts of the
accumulated interest accrued on the protested payments, on a pro rata
basis, to the credit of the appropriate funds or accounts into which
accrued interest on the various taxes, fees, or penalties that were
protested is allocated by other law. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect on the 91st day after adjournment.