83R20869 ADM-D
 
  By: Bohac H.B. No. 1724
 
  Substitute the following for H.B. No. 1724:
 
  By:  Hilderbran C.S.H.B. No. 1724
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the statute of limitations on municipal and county
  hotel occupancy taxes and interest on delinquent payments of
  municipal hotel occupancy taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.004, Tax Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  The municipality may bring suit against a person who is
  required to collect the tax imposed by this chapter and pay the
  collections over to the municipality, and who has failed to file a
  tax report or pay the tax when due, to collect the tax not paid or to
  enjoin the person from operating a hotel in the municipality until
  the tax is paid or the report filed, as applicable, as provided by
  the court's order.  In addition to the amount of any tax owed under
  this chapter, the person is liable to the municipality for:
               (1)  the municipality's reasonable attorney's fees;
               (2)  the costs of an audit conducted under Subsection
  (a-1)(1), as determined by the municipality using a reasonable
  rate, but only if:
                     (A)  the tax has been delinquent for at least two
  complete municipal fiscal quarters at the time the audit is
  conducted; and
                     (B)  the municipality has not received a
  disbursement from the comptroller as provided by Section 156.2513
  related to the person's concurrent state tax delinquency described
  by Section 351.008; [and]
               (3)  a penalty equal to 15 percent of the total amount
  of the tax owed if the tax has been delinquent for at least one
  complete municipal fiscal quarter; and
               (4)  interest under Section 351.0042.
         (b)  Except as provided by Subsection (b-1), a municipality
  must bring suit under this section not later than the fourth
  anniversary of the date the tax becomes due. [Section 16.061, Civil
  Practice and Remedies Code, applies to the collection of a tax under
  this chapter. A limitation period provided by Title 2 relating to
  the time allowed to assess taxes and bring a suit to collect taxes
  does not apply to a tax imposed under this chapter or to a suit
  brought under this section.]
         (b-1)  The limitation provided by Subsection (b) does not
  apply and a municipality may bring suit under this section at any
  time if:
               (1)  with intent to evade the tax, the person files a
  false or fraudulent report with the municipality; or
               (2)  the person has not filed a report for the tax with
  the municipality.
         SECTION 2.  Subchapter A, Chapter 351, Tax Code, is amended
  by adding Section 351.0042 to read as follows:
         Sec. 351.0042.  INTEREST ON DELINQUENT TAX. (a)  A person
  who fails to pay a tax due under this chapter is liable to the
  municipality for interest on the unpaid amount at the greater of the
  rate provided by Section 111.060(b) or the rate imposed by the
  municipality on January 1, 2013.
         (b)  Interest under this section accrues from the first day
  after the date due until the tax is paid.
         SECTION 3.  Section 352.004, Tax Code, is amended by adding
  Subsections (d-1) and (d-2) to read as follows:
         (d-1)  Except as provided by Subsection (d-2), a county must
  bring suit under this section not later than the fourth anniversary
  of the date the tax becomes due.
         (d-2)  The limitation provided by Subsection (d-1) does not
  apply and a county may bring suit under this section at any time if:
               (1)  with intent to evade the tax, the person files a
  false or fraudulent report with the county; or
               (2)  the person has not filed a report for the tax with
  the county.
         SECTION 4.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 5.  This Act takes effect September 1, 2013.