83R7206 TJB-F
 
  By: Deuell S.B. No. 1634
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration, collection, and enforcement of
  sales and use taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 111.0045, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  The comptroller may delegate to a person employed or
  designated by a municipality or county the power to perform duties
  as provided by Sections 321.302(c)(4) and 323.302(c)(4).
         SECTION 2.  Section 151.023(b), Tax Code, is amended to read
  as follows:
         (b)  For the purpose of determining the amount of tax
  collected and payable to the state and a municipality, county, or
  other local governmental entity, the amount of tax accruing and
  due, and whether a tax liability has been incurred under this
  chapter and Chapter 321, 322, or 323, the comptroller or a person
  authorized by the comptroller may:
               (1)  inspect at any time during business hours any
  business premises where a taxable event has occurred and examine,
  copy, and photograph the books, returns, records, papers, and
  equipment relating to the conduct in question; and
               (2)  require by delivery of written notice to the
  taxpayer or to an employee, representative, or agent of the
  taxpayer that, not later than the 10th working day after the date
  the notice is delivered, the taxpayer produce to an agent or
  designated representative of the comptroller for inspection the
  books, records, papers, and returns relating to the taxable
  activity stated in the notice.
         SECTION 3.  Section 151.027(c), Tax Code, is amended to read
  as follows:
         (c)  This section does not prohibit:
               (1)  the examination of information, if authorized by
  the comptroller, by another state officer or law enforcement
  officer, by a tax official of another state, by a tax official of
  the United Mexican States, or by an official of the United States if
  a reciprocal agreement exists;
               (2)  the delivery to a taxpayer, or a taxpayer's
  authorized representative, of a copy of a report or other paper
  filed by the taxpayer under this chapter;
               (3)  the publication of statistics classified to
  prevent the identification of a particular report or items in a
  particular report;
               (4)  the use of records, reports, or information
  secured, derived, or obtained by the attorney general or the
  comptroller in an action under this chapter against the same
  taxpayer who furnished the information;
               (5)  the delivery to a successor, receiver, executor,
  administrator, assignee, or guarantor of a taxpayer of information
  about items included in the measure and amounts of any unpaid tax or
  amounts of tax, penalties, and interest required to be collected;
               (6)  the delivery of information, including complete
  audit and tax compliance information, to a municipality, county, or
  other local governmental entity in accordance with Section
  321.3022, 321.3023, 322.2022, [or] 323.3022, or 323.3023; or
               (7)  the release of information in or derived from a
  record, report, or other instrument required to be furnished under
  this chapter by a governmental body, as that term is defined in
  Section 552.003, Government Code.
         SECTION 4.  Section 321.302, Tax Code, is amended by
  amending Subsections (b) and (c) and adding Subsections (e) and (f)
  to read as follows:
         (b)  If a municipality requests an additional report, the
  comptroller shall make an additional quarterly report to the
  municipality including the name, address, and account number, if
  any, of, and the amount of tax received and the amount due to the
  municipality from, each person doing business in the municipality
  who has failed to pay the tax under this chapter to the municipality
  or under Chapter 151. The additional report must also include
  statements:
               (1)  showing whether or not there has been a partial tax
  payment, and, if so, the proportional allocation to the
  municipality of the partial payment, by the delinquent taxpayer;
               (2)  showing whether or not the taxpayer is delinquent
  in the payment of sales and use taxes to the state; [and]
               (3)  describing the steps taken by the comptroller to
  collect the delinquent taxes;
               (4)  showing the tax periods covered by the
  delinquencies and the amount of delinquency in each period; and
               (5)  if the comptroller has not made the appropriate
  allocation to the municipality, the date by which the comptroller
  will make that allocation.
         (c)  If a municipality determines that a person doing
  business in the municipality has wholly or partly collected or
  reported taxes incorrectly under this chapter [is not included in a
  comptroller's report], the municipality shall report to the
  comptroller the name and address of the person. Within 120 [90]
  days after receiving the report from a municipality, the
  comptroller shall send to the municipality:
               (1)  an explanation as to why the person is not
  obligated for the municipal tax;
               (2)  a statement that the person is obligated for the
  municipal tax and the tax is delinquent that includes:
                     (A)  a description of the action the comptroller
  is taking to collect the delinquent tax;
                     (B)  an estimate of the delinquent tax due to the
  municipality and the tax periods covered by the delinquency;
                     (C)  the date by which the comptroller will
  complete the review and the date by which the comptroller will make
  all delinquent funds available to the municipality; and
                     (D)  the date and periods covered by the most
  recent audit of the person by the comptroller or a statement that
  the comptroller has not conducted an audit of the person; [or]
               (3)  a certification that the person is obligated for
  the municipal tax, the periods for which the person is obligated,
  [and that] the [full] amount of the tax due in each period that the
  person is obligated, and a statement as to whether the tax due has
  been credited to the municipality's account; or
               (4)  a statement authorizing a person employed by or
  designated by the municipality to perform the duties assigned to
  the comptroller under Sections 111.004 and 151.023.
         (e)  If a municipality disagrees with a determination made by
  the comptroller under Subsection (c), the municipality may petition
  the comptroller for a redetermination under Section 111.009. For
  purposes of that section and any related provisions in Chapter 111,
  a municipality is a party having a direct interest in the
  comptroller's determination.
         (f)  The comptroller may set and collect from the
  municipality or other local governmental entity reasonable fees to
  cover the expense of compiling and providing information or
  providing access to the administrative appeals process authorized
  by this section.
         SECTION 5.  Sections 321.3022(a-1) and (c), Tax Code, are
  amended to read as follows:
         (a-1)  Except as otherwise provided by this section, the
  comptroller on request shall provide to a municipality or other
  local governmental entity that has adopted a tax under this
  chapter:
               (1)  information relating to the amount of tax paid to
  the municipality or other local governmental entity under this
  chapter during the preceding or current calendar year by each
  person doing business in the municipality or other local
  governmental entity who annually remits to the comptroller state
  and local sales tax payments of more than $5,000; [and]
               (2)  information relating to the gross sales, taxable
  sales, and taxable purchases by each person doing business in the
  municipality by individual outlet as reported to the comptroller on
  a sales and use tax return; and
               (3)  any other information as provided by this section.
         (c)  The comptroller on request shall provide to a
  municipality or other local governmental entity a sales and use tax
  audit report, including any supporting documentation, related to
  applicable local sales tax collections and corrections [shall
  provide the information under Subsection (b) as an aggregate total
  for all persons doing business in the defined area without
  disclosing individual tax payments].
         SECTION 6.  Subchapter D, Chapter 321, Tax Code, is amended
  by adding Section 321.3023 to read as follows:
         Sec. 321.3023.  CLARIFICATION REQUEST. (a) A municipality
  or other local governmental entity that has adopted a tax under this
  chapter may submit to the comptroller a request for a determination
  of the appropriate location at which sales or uses were consummated
  in accordance with Sections 321.203 and 321.205. The request may
  include a question in relation to specific sales or uses or may
  include a fact pattern relating to sales and uses.
         (b)  The comptroller shall respond to the request by a
  municipality or other local governmental entity under this section
  not later than the 90th day after the date the comptroller receives
  the request. The response must include a statement of the
  comptroller's determination.
         (c)  A municipality may use the response from the comptroller
  in communications with a person, office, or outlet to encourage or
  compel compliance with this chapter.
         SECTION 7.  Section 322.108(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Subsection (b), the following
  apply to the taxes imposed by this chapter in the same manner as
  applicable to a municipality under Chapter 321:
               (1)  Section 321.002(a)(3);
               (2)  Section 321.003;
               (3)  Section 321.203;
               (4)  Section 321.205(d);
               (5)  Section 321.208;
               (6)  Section 321.209;
               (7)  Section 321.3023;
               (8)  Section 321.303;
               (9) [(8)]  Section 321.304;
               (10) [(9)]  Section 321.305; and
               (11) [(10)]  Section 321.510.
         SECTION 8.  Section 322.202(a), Tax Code, is amended to read
  as follows:
         (a)  The comptroller shall report to a taxing entity on the
  entity's sales and use taxes by making substantially the same
  reports that are required to be made by the comptroller to a
  municipality under Sections 321.302(a), (b), and (c). A taxing
  entity that disagrees with a determination made by the comptroller
  in a report made under this section may petition the comptroller in
  the same manner and with the same authority and obligations as a
  municipality under Sections 321.302(e) and (f).
         SECTION 9.  Sections 322.2022(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  Except as otherwise provided by this section, the
  comptroller on request shall provide to a taxing entity:
               (1)  information relating to the amount of tax paid to
  the entity under this chapter during the preceding or current
  calendar year by each person doing business in the area included in
  the entity who annually remits to the comptroller state and local
  sales tax payments of more than $5,000; [and]
               (2)  information relating to the gross sales, taxable
  sales, and taxable purchases by each person doing business in the
  area included in the entity by individual outlet as reported to the
  comptroller on a sales and use tax return; and
               (3)  any other information as provided by this section.
         (c)  The comptroller on request shall provide to a taxing
  entity a sales and use tax audit report, including any supporting
  documentation, related to applicable local sales tax collections
  and corrections [shall provide the information under Subsection (b)
  as an aggregate total for all persons doing business in the defined
  area without disclosing individual tax payments].
         SECTION 10.  Section 323.302, Tax Code, is amended by
  amending Subsections (b) and (c) and adding Subsections (e) and (f)
  to read as follows:
         (b)  If a county requests an additional report, the
  comptroller shall make an additional quarterly report to the county
  including the name, address, and account number, if any, of, and the
  amount of tax received and the amount due to the county from, each
  person doing business in the county who has failed to pay the tax
  under this chapter to the county or under Chapter 151. The
  additional report must also include statements:
               (1)  showing whether or not there has been a partial tax
  payment, and, if so, the proportional allocation to the county of
  the partial payment, by the delinquent taxpayer;
               (2)  showing whether or not the taxpayer is delinquent
  in the payment of sales and use taxes to the state; [and]
               (3)  describing the steps taken by the comptroller to
  collect the delinquent taxes;
               (4)  showing the tax periods covered by the
  delinquencies and the amount of delinquency in each period; and
               (5)  if the comptroller has not made the appropriate
  allocation to the county, the date by which the comptroller will
  make that allocation.
         (c)  If a county determines that a person doing business in
  the county has wholly or partly collected or reported taxes
  incorrectly under this chapter [is not included in a comptroller's
  report], the county shall report to the comptroller the name and
  address of the person. Within 120 [90] days after receiving the
  report from a county, the comptroller shall send to the county:
               (1)  an explanation as to why the person is not
  obligated for the county tax;
               (2)  a statement that the person is obligated for the
  county tax and the tax is delinquent that includes:
                     (A)  a description of the action the comptroller
  is taking to collect the delinquent tax;
                     (B)  an estimate of the delinquent tax due to the
  county and the tax periods covered by the delinquency;
                     (C)  the date by which the comptroller will
  complete the review and the date by which the comptroller will make
  all delinquent funds available to the county; and
                     (D)  the date and periods covered by the most
  recent audit of the person by the comptroller or a statement that
  the comptroller has not conducted an audit of the person; [or]
               (3)  a certification that the person is obligated for
  the county tax, the periods for which the person is obligated, [and
  that] the [full] amount of the tax due in each period that the
  person is obligated, and a statement as to whether the tax due has
  been credited to the county's account; or
               (4)  a statement authorizing a person employed by or
  designated by the county to perform the duties assigned to the
  comptroller under Sections 111.004 and 151.023.
         (e)  If a county disagrees with a determination made by the
  comptroller under Subsection (c), the county may petition the
  comptroller for a redetermination under Section 111.009. For
  purposes of that section and any related provisions in Chapter 111,
  a county is a party having a direct interest in the comptroller's
  determination.
         (f)  The comptroller may set and collect from the county or
  other local governmental entity reasonable fees to cover the
  expense of compiling and providing information or providing access
  to the administrative appeals process authorized by this section.
         SECTION 11.  Sections 323.3022(b) and (d), Tax Code, are
  amended to read as follows:
         (b)  Except as otherwise provided by this section, the
  comptroller on request shall provide to a county or other local
  governmental entity that has adopted a tax under this chapter:
               (1)  information relating to the amount of tax paid to
  the county or other local governmental entity under this chapter
  during the preceding or current calendar year by each person doing
  business in the county or other local governmental entity who
  annually remits to the comptroller state and local sales tax
  payments of more than $5,000; [and]
               (2)  information relating to the gross sales, taxable
  sales, and taxable purchases by each person doing business in the
  county by individual outlet as reported to the comptroller on a
  sales and use tax return; and
               (3)  any other information as provided by this section.
         (d)  The comptroller on request shall provide to a county or
  other local governmental entity a sales and use tax audit report,
  including any supporting documentation, related to applicable
  local sales tax collections and corrections [shall provide the
  information under Subsection (c) as an aggregate total for all
  persons doing business in the defined area without disclosing
  individual tax payments].
         SECTION 12.  Subchapter D, Chapter 323, Tax Code, is amended
  by adding Section 323.3023 to read as follows:
         Sec. 323.3023.  CLARIFICATION REQUEST. (a)  A county or
  other local governmental entity that has adopted a tax under this
  chapter may submit to the comptroller a request for a determination
  of the appropriate location at which sales or uses were consummated
  in accordance with Sections 323.203 and 323.205. The request may
  include a question in relation to specific sales or uses or may
  include a fact pattern relating to sales and uses.
         (b)  The comptroller shall respond to the request by a county
  or other local governmental entity under this section not later
  than the 90th day after the date the comptroller receives the
  request. The response must include a statement of the comptroller's
  determination.
         (c)  A county may use the response from the comptroller in
  communications with a person, office, or outlet to encourage or
  compel compliance with this chapter.
         SECTION 13.  This Act takes effect September 1, 2013.