78R1068 DAK-D
By: Ritter H.B. No. 1123
A BILL TO BE ENTITLED
AN ACT
relating to tax refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.104, Tax Code, is amended by
amending Subsections (b) and (c) and by adding Subsection (g) to
read as follows:
(b) Except as otherwise provided by Subsection (g), a [A]
tax refund claim may be filed with the comptroller only by the
person who directly paid the tax to this state or by the person's
attorney, assignee, or other successor.
(c) A claim for a refund must:
(1) be written;
(2) state fully and in detail each reason or ground
[the grounds] on which the claim is founded; and
(3) be filed before the expiration of the applicable
limitation period as provided by this code or before the expiration
of six months after a jeopardy or deficiency determination becomes
final, whichever period expires later.
(g) Subject to the requirements of Subsection (c), a claim
for a refund for tax paid under Chapter 151 may be filed with the
comptroller only by:
(1) a permitted seller who collected the tax from a
non-permitted purchaser or by the permitted seller's attorney,
assignee, or other successor;
(2) a permitted purchaser who paid the tax to this
state or to a permitted seller or by the permitted purchaser's
attorney, assignee, or other successor; or
(3) a permitted seller who refunded the tax to a
permitted purchaser and who has obtained an assignment of the tax
from the permitted purchaser.
SECTION 2. Section 111.1042, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) If the right to a hearing is not exercised on a full or
partial denial of a claim for refund, the period during which the
comptroller informally reviewed the claim for refund is not
considered in determining the expiration date of a limitation
period for any subsequent claim for refund on the same period and
type of tax for which the claim for refund was fully or partially
denied.
SECTION 3. Section 111.105, Tax Code, is amended by
amending Subsection (a) and by adding Subsection (e) to read as
follows:
(a) A person claiming a refund under Section 111.104 [of
this code] is entitled to a hearing on the claim if the person
requests a hearing on or before the 30th day after the date [in
accordance with procedures prescribed by] the comptroller issues a
letter denying the claim for refund. The person is entitled to 20
days' notice of the time and place of the hearing.
(e) During the administrative hearing process, a person
claiming a refund under Section 111.104 must submit documentation
to enable the comptroller to verify the claim for refund. The
comptroller may issue a notice of demand that all evidence to
support the claim for refund must be produced before the expiration
of a specified date in the notice. The specified date in the notice
may not be less than 180 days. The comptroller may not consider
evidence produced after the specified date in the notice in an
administrative hearing. The limitation provided by this subsection
does not apply to a judicial proceeding filed in accordance with
Chapter 112.
SECTION 4. Section 111.107, Tax Code, is amended to read as
follows:
Sec. 111.107. WHEN REFUND OR CREDIT IS PERMITTED. (a)
Except as otherwise expressly provided, a person may request a
refund or a credit or the comptroller may make a refund or issue a
credit for the overpayment of a tax imposed by this title at any
time before the expiration of the period during which the
comptroller may assess a deficiency for the tax and not thereafter
unless the refund or credit is requested:
(1) under Subchapter B of Chapter 112 and the refund
is made or the credit is issued under a court order;
(2) under the provision of Section 111.104(c)(3)
applicable to a refund claim filed after a jeopardy or deficiency
determination becomes final; or
(3) under Chapter 153, except Section 153.1195(e),
153.121(d), 153.2225(e), or 153.224(d).
(b) A person may not file a claim for refund for taxes paid
on the same item or transaction for the same tax type and for the
same period that was the subject of a prior refund claim that was
denied by the comptroller.
SECTION 5. Sections 111.206(b), (c), and (d), Tax Code, are
amended to read as follows:
(b) A final determination that affects the amount of
liability of a tax imposed by this title shall be reported to the
comptroller before the expiration of 120 [60] days after the day on
which the determination becomes final. The report must include a
detailed statement of the reasons for the difference in tax
liability as required by the comptroller.
(c) Notwithstanding the expiration of a period of
limitation provided in this title, the comptroller may assess and
collect or bring suit for the collection of any tax deficiency,
including penalties and interest, resulting from a final
determination [or from investigation] at any time before the
expiration of one year after:
(1) the later of the day the report is required to be
filed as provided by Subsection (b) or the day [of this section is
received, if] the report is received [filed within the 60-day
period]; or
(2) [if the report is not made or is made after the
60-day period, the day the report is received or] the day the final
determination is discovered, if a report is not filed [whichever
period is the shorter].
(d) If a final determination [or investigation] results in
the taxpayer having overpaid the amount of tax due the state, the
taxpayer may file a claim for refund with the comptroller [shall
refund or issue a credit] for the amount of the overpayment before
the first anniversary of the date the final determination becomes
final. If the comptroller assesses tax by issuing a deficiency
determination within the [at any time during the one-year] period
provided by [during which assessments may be made under] Subsection
(c), the taxpayer may file a claim for refund for an amount of tax
that has been found due in a deficiency determination before the
180th day after the deficiency determination becomes final, but the
claim is limited to the items and the tax payment period for which
the determination was issued [of this section].
SECTION 6. Sections 111.207(a) and (b), Tax Code, are
amended to read as follows:
(a) In determining the expiration date for a period when a
tax imposed by this title may be assessed, [or] collected, or
refunded, the following periods are not considered:
(1) the period following the date of a tax payment made
under protest, but only if a lawsuit is timely filed in accordance
with Chapter 112;
(2) the period during which a judicial proceeding is
pending in a court of competent jurisdiction to determine the
amount of the tax due; and
(3) the period during which an administrative
redetermination or refund hearing [proceeding] is pending before
the comptroller [for a redetermination of the tax liability].
(b) The suspension of a period of limitation under
Subsection (a) is limited [of this section applies only] to the
issues that were contested [amount of taxes in issue] under
Subdivision (1), (2), or (3) of that subsection.
SECTION 7. Section 151.430(c), Tax Code, is amended to read
as follows:
(c) The person may obtain reimbursement for amounts
determined to have been overpaid [by taking a credit on one or more
sales tax returns or] by filing a claim for refund with the
comptroller within the limitation period specified by Subchapter D,
Chapter 111.
SECTION 8. Section 111.207(d), Tax Code, is repealed.
SECTION 9. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.
(b) This Act applies only to a claim for a refund made on or
after the effective date of this Act without regard to whether the
taxes that are the subject of the claim were due before, on, or
after that date.