By: Perry S.B. No. 903
 
  (Sanford)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to suits for tax refunds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 111, Tax Code, is amended
  by adding Section 111.106 to read as follows:
         Sec. 111.106.  TAX REFUND:  NOTICE OF INTENT TO BYPASS
  HEARING.  (a)  A person claiming a refund under Section 111.104 may
  file with the comptroller a notice of intent to bypass the hearing
  under Section 111.105.  The notice of intent must:
               (1)  be filed on or before the 60th day after the date
  the comptroller issues a letter denying the claim for refund;
               (2)  be in writing;
               (3)  assert the material facts and each specific legal
  basis on which a refund is claimed; and
               (4)  specify the amount of the refund claimed.
         (b)  A person who files a notice of intent under Subsection
  (a) may bypass the hearing under Section 111.105 and bring a suit
  under Subchapter D, Chapter 112, if:
               (1)  the person participated in a conference under
  Subsection (c), in which case the suit must be filed on or before
  the 60th day after the date the conference concludes or a later date
  agreed to by the comptroller; or
               (2)  the comptroller does not provide notice in the
  time required by Subsection (d) that a conference is required, in
  which case the suit must be filed on or before the 90th day after the
  date the notice of intent was filed.
         (c)  The comptroller may require a conference between a
  person who files a notice of intent under Subsection (a) and a
  designated officer or employee of the comptroller to clarify any
  fact or legal issue in dispute regarding the refund claim and to
  discuss the availability of additional documentation that may
  assist in resolving outstanding issues regarding the claim.  The
  person who filed the notice of intent may amend a material fact or
  legal basis described by Subsection (a)(3) following the conference
  if the comptroller agrees in writing to the amendment.
         (d)  If the comptroller requires a conference under
  Subsection (c), the comptroller shall notify the person of the
  conference requirement not later than the 30th day after the date
  the notice of intent under Subsection (a) was filed.  The notice of
  the conference requirement must be in writing and include a date and
  time for the conference.  The conference date provided in the notice
  must be no later than the 90th day after the date the notice of
  intent was filed.
         (e)  The person who filed the notice of intent under
  Subsection (a) may request to reschedule the conference date
  provided in the notice under Subsection (d).  The comptroller shall
  make a good faith effort to accommodate the request.  If the
  comptroller and the person who filed the notice of intent do not
  agree on or before the 90th day after the date the notice of intent
  was filed to a rescheduled date for the conference, the person may
  rescind the notice of intent on or before the 120th day after the
  date the notice of intent was filed and request a hearing under
  Section 111.105.
         (f)  Except as provided by Subsection (e), a person who files
  a notice of intent under Subsection (a) waives the person's right to
  a hearing under Section 111.105.
         SECTION 2.  Sections 112.151(a), (c), and (d), Tax Code, are
  amended to read as follows:
         (a)  A person may sue the comptroller to recover an amount of
  tax, penalty, or interest that has been the subject of a tax refund
  claim if the person [has]:
               (1)  has filed a tax refund claim under Section 111.104
  [of this code];
               (2)  either:
                     (A)  has filed, as provided by Section 111.105 [of
  this code], a motion for rehearing that has been denied by the
  comptroller; or
                     (B)  is authorized to bring the suit under Section
  111.106(b); and
               (3)  has paid any additional tax found due in a jeopardy
  or deficiency determination that applies to the tax liability
  period covered in the tax refund claim.
         (c)  A person who satisfies the requirement of Subsection
  (a)(2)(A) must file the [The] suit [must be filed] before the
  expiration of 60 [30] days after the issue date of the denial of the
  motion for rehearing or it is barred.  A person who satisfies the
  requirement of Subsection (a)(2)(B) must file the suit during the
  time provided by Section 111.106(b) or it is barred.
         (d)  The amount of the refund sought must be set out in the
  original petition.  A copy of the motion for rehearing filed under
  Section 111.105 or the notice of intent filed under Section
  111.106(a), as applicable, [of this code] must be attached to the
  original petition filed with the court and to the copies of the
  original petition served on the comptroller and the attorney
  general.
         SECTION 3.  Section 112.152, Tax Code, is amended to read as
  follows:
         Sec. 112.152.  ISSUES IN SUIT. (a)  The [grounds of error
  contained in the motion for rehearing are the] only issues that may
  be raised in a suit under this subchapter are, as applicable, the:
               (1)  grounds of error contained in the motion for
  rehearing; or
               (2)  material facts and legal bases contained in the
  notice of intent filed under Section 111.106(a).
         (b)  The suit applies only to a tax liability period
  considered in the comptroller's decision or covered by the notice
  of intent filed under Section 111.106, as applicable.
         SECTION 4.  This Act applies to a claim for a refund that is
  pending or filed on or after the effective date of this Act, without
  regard to whether the taxes that are the subject of the claim were
  due before, on, or after that date.
         SECTION 5.  This Act takes effect September 1, 2021.