By: Isett H.B. No. 2636
A BILL TO BE ENTITLED
AN ACT
relating to the rate of interest and the period for which interest
is paid on certain tax refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.064, Tax Code, is amended by
amending Subsections (a), (c), and (f) and adding Subsection (c-1)
to read as follows:
(a) Except as otherwise provided by this section
[Subsections (b) and (c)], in a comptroller's final decision on a
claim for refund or in an audit, interest is at the rate set in
Section 111.060 on the amount found to be erroneously paid for a
period:
(1) beginning on the later of:
(A) 60 days after the date of payment;
(B) [or] the due date of the tax report; or
(C) the date the claim for the refund is filed;
and
(2) ending on, as determined by the comptroller,
either the date of allowance of credit on account of the
comptroller's final decision or audit or a date not more than 10
days before the date of the refund warrant.
(c) For a refund claimed before September 1, 2005, and
granted for a report period due on or after January 1, 2000, the
rate of interest is the rate set in Section 111.060. For a refund
claimed on or after September 1, 2005, and granted for a report
period due on or after January 1, 2000, the rate of interest is the
lesser of:
(1) the average rate of interest earned on deposits in
the state treasury during the period for which interest is paid on
the refund, as determined by the comptroller; or
(2) the rate set in Section 111.060.
(c-1) A refund, without regard to the date claimed, for a
report period due before January 1, 2000, does not accrue interest.
(f) A local revenue fund is not subject to Subsections
(a)-(c-1) [(c)]. In this subsection, "local revenue fund" includes
a court cost, a fee, a fine, or a similar charge collected by a
municipality, a county, or a court of this state and remitted to the
comptroller.
SECTION 2. This Act takes effect September 1, 2005.