By: Williams S.B. No. 1570
A BILL TO BE ENTITLED
AN ACT
relating to the rate of interest 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 Subsections (c-1)
and (c-2) 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 60 days after the date of
payment or the due date of the tax report; 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 granted in connection with a protest
payment submitted under Chapter 112 for a report period due on or
after January 1, 2000, the rate of the interest is the rate set in
Section 111.060.
(c-1) For a refund other than a refund described in
Subsection (c) 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 other than a refund
described in Subsection (c) 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-2) 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-2) [(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.