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A BILL TO BE ENTITLED
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AN ACT
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relating to the discount for prepayment of sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.424, Tax Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1) and (a-2) to |
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read as follows: |
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(a) A taxpayer who prepays the taxpayer's tax liability on |
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the basis of a reasonable estimate of the tax liability for a |
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quarter in which a prepayment is made or for a month in which a |
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prepayment is made may deduct and withhold: |
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(1) one [1.25] percent of the amount of the prepayment |
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if the taxpayer pays the tax quarterly; or |
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(2) one-half of one percent of the amount of the |
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prepayment if the taxpayer pays the tax monthly. |
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(a-1) The amount of the prepayment permitted to be deducted |
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and withheld under this section is in addition to the amount |
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permitted to be deducted and withheld under Section 151.423 [of
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this code]. |
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(a-2) A reasonable estimate of the tax liability must be at |
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least 90 percent of the tax ultimately due or the amount of tax paid |
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in the same quarter, or month, if the taxpayer pays the tax monthly |
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[a monthly prepayer], in the last preceding year. Failure to prepay |
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a reasonable estimate of the tax will result in the loss of the |
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entire prepayment discount. |
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SECTION 2. The change in law made by this Act applies only |
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to a prepayment of tax liability made on or after the effective date |
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of this Act. A prepayment of tax liability made before the effective |
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date of this Act is governed by the law in effect on the date the |
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prepayment was made, and the former law is continued in effect for |
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that purpose. |
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SECTION 3. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 4. This Act takes effect September 1, 2013. |