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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax rebate for certain low-income |
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families. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 151, Tax Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. WORKING FAMILIES TAX REBATE |
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Sec. 151.851. ENTITLEMENT TO REBATE. Subject to Section |
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151.854, a person is entitled to a rebate in the amount and under |
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the conditions provided by this subchapter for sales and use taxes |
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paid under this chapter if: |
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(1) the person's address listed on the person's most |
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recent federal income tax return is in this state; |
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(2) the person was a resident of this state for at |
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least 180 days of the most recent federal income tax year or, if the |
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person is married and jointly filed a federal income tax return with |
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the person's spouse for the most recent federal income tax year, the |
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person's spouse was a resident of this state for at least 180 days |
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of that year; and |
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(3) the person received a federal earned income tax |
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credit authorized by Section 32, Internal Revenue Code of 1986, for |
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the most recent federal income tax year. |
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Sec. 151.852. AMOUNT. The amount of the rebate under this |
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subchapter is equal to 10 percent of the amount of the federal |
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earned income tax credit a person received for the most recent |
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federal income tax year. |
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Sec. 151.853. APPLICATION FOR REBATE. A person must apply |
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for a rebate under this subchapter not later than December 31 of the |
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year following the federal income tax year for which the person |
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received the federal earned income tax credit. The application |
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must be in the form and manner specified by the comptroller and |
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include any information the comptroller determines to be necessary |
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to administer this subchapter. |
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Sec. 151.854. ALLOCATION BETWEEN CERTAIN PERSONS. (a) |
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Subject to Subsection (b), if a person who is otherwise entitled to |
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a rebate under this subchapter jointly filed a federal income tax |
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return for the most recent federal income tax year with the person's |
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spouse, the persons who filed the joint return shall: |
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(1) apply for and jointly receive the rebate; or |
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(2) choose which of them will apply for and receive the |
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rebate. |
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(b) The comptroller shall determine the allocation of a |
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rebate between two persons who filed a joint federal income tax |
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return as described by Subsection (a) if those persons cannot agree |
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to an option provided by that subsection. The comptroller's |
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allocation determination is final. |
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Sec. 151.855. VERIFICATION OF ELIGIBILITY. On receipt of |
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an application under this subchapter, the comptroller shall verify |
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that the applicant is eligible for the rebate based on: |
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(1) information provided by the applicant; and |
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(2) if necessary, other information available to the |
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comptroller, including information provided by the Internal |
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Revenue Service. |
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Sec. 151.856. PAYMENT OF REBATE. (a) The comptroller shall |
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pay a rebate under this subchapter by any means the comptroller |
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determines appropriate, including by electronic funds transfer. |
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(b) A rebate paid under this subchapter is not a refund of |
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taxes erroneously paid, and Section 111.064, Tax Code, does not |
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apply. |
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Sec. 151.857. INFORMATION ON AVAILABILITY OF REBATE. (a) |
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The comptroller may contact persons who, based on information |
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obtained from the Internal Revenue Service, are likely to be |
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eligible for the rebate under this subchapter to inform those |
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persons of the availability of and eligibility criteria for the |
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rebate. The comptroller shall comply with Internal Revenue Service |
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requirements and limitations regarding the use of information |
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obtained from the service. |
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(b) The comptroller, in cooperation with other appropriate |
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state agencies and public and private entities, may implement a |
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public information campaign to promote the rebate under this |
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subchapter. |
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Sec. 151.858. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter, including easy and simple |
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methods by which a person may file an application under Section |
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151.853. The rules may allow for electronic filing of the |
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application but must specify at least one other filing method. |
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SECTION 2. The comptroller shall adopt the rules required |
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by Section 151.858, Tax Code, as added by this Act, not later than |
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December 1, 2009. |
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SECTION 3. A person may file an application for a rebate |
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under Subchapter N, Chapter 151, Tax Code, as added by this Act, on |
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or after January 1, 2010. |
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SECTION 4. This Act takes effect September 1, 2009. |