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A BILL TO BE ENTITLED
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AN ACT
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relating to amended sales tax reports and the reallocation of sales |
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tax revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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by adding Section 151.4065 to read as follows: |
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Sec. 151.4065. AMENDED REPORT. (a) A taxpayer may amend a |
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tax report filed under this chapter for a previous reporting period |
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within the statute of limitations. |
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(b) The amended report must be filed on the form prescribed |
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by the comptroller and must: |
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(1) include an explanation for the amendment; and |
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(2) be signed by the taxpayer or the person authorized |
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by the taxpayer to amend the return. |
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SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended |
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by adding Section 321.510 to read as follows: |
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Sec. 321.510. REALLOCATION OF MUNICIPAL OR LOCAL |
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GOVERNMENTAL ENTITY TAX REVENUE. (a) In this section, "local |
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governmental entity" includes any governmental entity created by |
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the legislature that has a limited purpose or function, that has a |
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defined or restricted geographic territory, and that is authorized |
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by law to impose a local sales and use tax the imposition, |
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computation, administration, enforcement, and collection of which |
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is governed by this chapter. |
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(b) This section applies only if: |
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(1) the comptroller intends to reallocate local tax |
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revenue from a municipality or local governmental entity to another |
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municipality or local governmental entity; and |
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(2) the amount the comptroller intends to reallocate |
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as the result of a single instance is at least equal to the lesser |
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of: |
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(A) $200,000; or |
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(B) an amount equal to 10 percent of the revenue |
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received by the municipality or local governmental entity under |
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this chapter during the calendar year preceding the calendar year |
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in which the reallocation will be made. |
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(c) This section does not apply to a refund. |
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(d) The comptroller shall establish administrative |
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procedures for the examination of amended tax reports filed by |
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taxpayers under Section 151.4065 that result in a reallocation |
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amount described by Subsection (b). |
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(e) If, subject to the criteria provided by this section, |
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the comptroller concludes after an examination of taxpayer records |
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that tax revenue collected by the comptroller has been sent |
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incorrectly to a municipality or local governmental entity under |
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Section 321.502, the comptroller shall send to that municipality or |
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local governmental entity written notice that the comptroller |
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intends to reallocate the revenue to another municipality or local |
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governmental entity. |
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(f) The notice must include the following information |
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concerning the pending reallocation, regardless of whether the |
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information is confidential under state law, including Sections |
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111.006 and 151.027: |
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(1) the identity of the taxpayer; |
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(2) the reporting periods involved in the pending |
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reallocation; |
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(3) the amount of the pending reallocation; and |
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(4) a summary of the reason for the pending |
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reallocation. |
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(g) The provision of confidential information to a |
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municipality or local governmental entity under this section does |
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not affect the confidential nature of the information. A |
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municipality or local governmental entity shall use the information |
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only in a manner that maintains the confidential nature of the |
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information and may not disclose or release the information to the |
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public. |
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(h) A municipality or local governmental entity that |
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receives a notice under this section may request a review of the |
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pending reallocation by submitting to the comptroller a written |
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request for an independent audit review on the issue of whether the |
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original allocation of the revenue was incorrect. The municipality |
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or local governmental entity must submit the request not later than |
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the 30th day after the date the municipality or local governmental |
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entity receives the notice under this section. |
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(i) Not earlier than the 30th day or later than the 90th day |
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after the date the comptroller receives a request for an |
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independent audit review under Subsection (h), the comptroller |
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shall conduct an independent audit review on whether the original |
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allocation of the revenue was incorrect. |
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(j) The comptroller shall notify each affected taxpayer and |
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affected municipality or local governmental entity of the |
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independent audit review. The affected taxpayer and affected |
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municipality or local governmental entity may participate in the |
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review. |
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(k) After the conclusion of the review, the comptroller |
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shall notify each affected municipality and local governmental |
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entity in writing whether the reallocation will occur. |
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SECTION 3. Section 322.108(a), Tax Code, is amended to read |
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as follows: |
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(a) Except as provided by Subsection (b), the following |
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apply to the taxes imposed by this chapter in the same manner as |
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applicable to a municipality under Chapter 321: |
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(1) Section 321.002(a)(3); |
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(2) Section 321.003; |
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(3) Section 321.203; |
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(4) Section 321.205(d); |
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(5) Section 321.208; |
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(6) Section 321.209; |
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(7) Section 321.303; |
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(8) Section 321.304; [and] |
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(9) Section 321.305; and |
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(10) Section 321.510. |
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SECTION 4. Subchapter F, Chapter 323, Tax Code, is amended |
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by adding Section 323.510 to read as follows: |
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Sec. 323.510. REALLOCATION OF COUNTY OR LOCAL GOVERNMENTAL |
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ENTITY TAX REVENUE. (a) In this section, "local governmental |
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entity" includes any governmental entity created by the legislature |
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|
that has a limited purpose or function, that has a defined or |
|
|
restricted geographic territory, and that is authorized by law to |
|
|
impose a local sales and use tax the imposition, computation, |
|
|
administration, enforcement, and collection of which is governed by |
|
|
this chapter. |
|
|
(b) This section applies only if: |
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|
(1) the comptroller intends to reallocate local tax |
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|
revenue from a county or local governmental entity to another |
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|
county or local governmental entity; and |
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|
(2) the amount the comptroller intends to reallocate |
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|
as the result of a single instance is at least equal to the lesser |
|
|
of: |
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|
(A) $200,000; or |
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|
(B) an amount equal to 10 percent of the revenue |
|
|
received by the county or local governmental entity under this |
|
|
chapter during the calendar year preceding the calendar year in |
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|
which the reallocation will be made. |
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|
(c) This section does not apply to a refund. |
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(d) The comptroller shall establish administrative |
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|
procedures for the examination of amended tax reports filed by |
|
|
taxpayers under Section 151.4065 that result in a reallocation |
|
|
amount described by Subsection (b). |
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(e) If, subject to the criteria provided by this section, |
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|
the comptroller concludes after an examination of taxpayer records |
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that tax revenue collected by the comptroller has been sent |
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|
incorrectly to a county or local governmental entity under Section |
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|
323.502, the comptroller shall send to that county or local |
|
|
governmental entity written notice that the comptroller intends to |
|
|
reallocate the revenue to another county or local governmental |
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|
entity. |
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(f) The notice must include the following information |
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|
concerning the pending reallocation, regardless of whether the |
|
|
information is confidential under state law, including Sections |
|
|
111.006 and 151.027: |
|
|
(1) the identity of the taxpayer; |
|
|
(2) the reporting periods involved in the pending |
|
|
reallocation; |
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(3) the amount of the pending reallocation; and |
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|
(4) a summary of the reason for the pending |
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reallocation. |
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(g) The provision of confidential information to a county or |
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local governmental entity under this section does not affect the |
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confidential nature of the information. A county or local |
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governmental entity shall use the information only in a manner that |
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maintains the confidential nature of the information and may not |
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disclose or release the information to the public. |
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(h) A county or local governmental entity that receives a |
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notice under this section may request a review of the pending |
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reallocation by submitting to the comptroller a written request for |
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an independent audit review on the issue of whether the original |
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allocation of the revenue was incorrect. The county or local |
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governmental entity must submit the request not later than the 30th |
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day after the date the county or local governmental entity receives |
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the notice under this section. |
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(i) Not earlier than the 30th day or later than the 90th day |
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after the date the comptroller receives a request for an |
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independent audit review under Subsection (h), the comptroller |
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shall conduct an independent audit review on whether the original |
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allocation of the revenue was incorrect. |
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(j) The comptroller shall notify each affected taxpayer and |
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affected county or local governmental entity of the independent |
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audit review. The affected taxpayer and affected county or local |
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governmental entity may participate in the review. |
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(k) After the conclusion of the review, the comptroller |
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shall notify each affected county and local governmental entity in |
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writing whether the reallocation will occur. |
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SECTION 5. This Act takes effect January 1, 2012. |