SRC-TBR S.B. 848 77(R)BILL ANALYSIS


Senate Research CenterS.B. 848
By: Ellis, Rodney
Finance
5/21/2001
Enrolled


DIGEST AND PURPOSE 

Currently, the interest on state taxes paid under protest is held in a
fund, called a "suspense" fund, until the underlying tax case is resolved.
If the state wins the case, the tax payment is credited to the fund for
which it was originally intended, but the interest remains in the suspense
fund unavailable for the state's operating budget.  S.B. 848 amends state
law to allow this interest to be deposited into the fund to which the tax
is allocated, rather than the suspense fund. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 404.071(a), Government Code, by deleting
language regarding the portion of funds required by other statutes to be
credited on a pro rata basis to protested payments. 

SECTION 2.  Provides that this section applies only to the accumulated
interest that remains credited to the suspense account of the comptroller
into which, under former law, the comptroller deposited protested payments
of taxes, fees, and penalties made as a condition of bringing suit under
Chapter 430J (Suits by Persons Owing Taxes or Fees), Government Code, or
Chapter 112 (Taxpayers' Suits), Tax Code. 

(b)  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. 

SECTION 3.  Effective date: upon passage or on the 91st day after the last
day of the legislative session.