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A BILL TO BE ENTITLED
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AN ACT
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relating to certain tax and fee collection procedures and taxpayer |
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suits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 111.0041, Tax Code, is |
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amended to read as follows: |
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Sec. 111.0041. RECORDS[; BURDEN TO PRODUCE AND SUBSTANTIATE |
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CLAIMS]. |
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SECTION 2. Section 111.0041(b), Tax Code, is amended to |
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read as follows: |
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(b) A taxpayer is required to keep records [, as provided by |
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Subsection (c) with respect to the taxpayer's claim,] open for |
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inspection under Subsection (a) for more than four years throughout |
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any period when: |
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(1) any tax, penalty, or interest may be assessed, |
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collected, or refunded by the comptroller; or |
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(2) an administrative hearing is pending before the |
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comptroller, or a judicial proceeding is pending, to determine the |
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amount of the tax, penalty, or interest that is to be assessed, |
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collected, or refunded. |
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SECTION 3. Section 111.008(a), Tax Code, is amended to read |
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as follows: |
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(a) If the comptroller is not satisfied with a tax report, |
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[or] the amount of the tax required to be paid to the state by a |
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person, or the amount of an overpayment of tax identified in a tax |
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report or an audit, including a managed audit, the comptroller may |
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compute and determine the amount of tax to be paid or the amount to |
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be credited or refunded from information contained in the report or |
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from any other information available to the comptroller. |
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SECTION 4. Section 111.009, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) A petition for redetermination must be filed before the |
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expiration of 60 days after the date the notice of determination is |
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issued or the redetermination is barred. |
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(b-1) If a petition for redetermination is not filed before |
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the expiration of the period provided by Subsection (b) and a suit |
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is not filed before the expiration of the period provided by Section |
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112.251 [this subsection], the determination is final on the |
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expiration of the later of those periods [period]. |
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SECTION 5. Section 111.104(c), Tax Code, is amended to read |
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as follows: |
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(c) A claim for a refund must: |
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(1) be written; |
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(2) state [fully and in detail] each reason or ground |
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on which the claim is founded; and |
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(3) be filed before the expiration of the applicable |
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limitation period as provided by this code or before the expiration |
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of six months after a jeopardy or deficiency determination becomes |
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final, whichever period expires later. |
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SECTION 6. Sections 112.051(a) and (b), Tax Code, are |
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amended to read as follows: |
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(a) If a person [who is required to pay a tax imposed by this |
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title or collected by the comptroller under any law, including a |
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local tax collected by the comptroller,] contends that a [the] tax |
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imposed by this title or collected by the comptroller under any law, |
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including a local tax collected by the comptroller, is unlawful, |
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[or] that the public official charged with the duty of collecting |
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the tax may not legally demand or collect the tax, or that an order, |
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rule, or policy unlawfully or erroneously establishes or implies an |
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obligation to pay or collect the tax, the person shall pay the |
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amount [claimed by the state], and if the person intends to bring |
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suit under this subchapter, the person must submit with the payment |
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a protest. |
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(b) The protest must be in writing and must state [fully and |
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in detail] each reason or ground for recovering the payment. |
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SECTION 7. Section 112.052(a), Tax Code, is amended to read |
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as follows: |
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(a) A person may bring suit against the state to recover a |
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tax that [required to be paid to the state if] the person has first |
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paid [the tax] under protest as required by Section 112.051. |
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SECTION 8. Chapter 112, Tax Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. SUIT AFTER DETERMINATION |
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Sec. 112.251. SUIT TO CHALLENGE DETERMINATION. (a) A |
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person may sue the comptroller to challenge the amount of an |
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underpayment or overpayment of tax, penalty, or interest that has |
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been the subject of a jeopardy or deficiency determination. |
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(b) The suit must be brought against both the comptroller |
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and the attorney general and must be filed in a district court. |
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(c) Except as provided by Subsection (d), the suit must be |
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filed not later than the 60th day after the issue date of the |
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determination or it is barred. |
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(d) If the person filed a petition for redetermination under |
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Section 111.009, the suit must be filed not later than the 60th day |
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after the issue date of the denial of the motion for rehearing or it |
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is barred. |
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Sec. 112.252. APPLICABLE PERIOD. The suit applies only to a |
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tax liability period that is the subject of the determination. |
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Sec. 112.253. COLLECTION ACTIONS ENJOINED. After the |
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comptroller has been timely served in a suit that complies with this |
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subchapter, the comptroller and the attorney general are enjoined |
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from collecting disputed amounts from the person bringing the suit |
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during the pendency of the suit. |
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Sec. 112.254. ATTORNEY GENERAL TO REPRESENT COMPTROLLER. |
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The attorney general shall represent the comptroller in a suit |
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under this subchapter. |
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Sec. 112.255. TRIAL DE NOVO. In a suit under this |
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subchapter, the issues shall be tried de novo as are other civil |
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cases. |
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Sec. 112.256. JUDGMENT. (a) The amount of a judgment for |
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the plaintiff shall be credited against any tax, penalty, or |
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interest imposed by this title and due from the plaintiff. |
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(b) The remainder of the amount of a judgment not credited |
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to a tax, penalty, or interest due shall be refunded to the |
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plaintiff. |
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(c) The plaintiff is entitled to interest on the amount of |
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tax included in a judgment for the plaintiff equal to the amount of |
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interest that would be due if the tax had been deposited in the |
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suspense account of the comptroller. The interest accrues |
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beginning from the date that the tax was paid until: |
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(1) the date that the amount is credited against the |
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plaintiff's tax liability; or |
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(2) a date determined by the comptroller that is not |
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sooner than 10 days before the actual date on which a refund warrant |
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is issued. |
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SECTION 9. The following provisions of the Tax Code are |
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repealed: |
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(1) Sections 111.0041(c) and (d); |
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(2) Section 111.105(e); |
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(3) Section 112.003; |
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(4) Section 112.052(d); |
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(5) Section 112.151(f); and |
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(6) Subchapter E, Chapter 112. |
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SECTION 10. The repeal by this Act of Subchapter E, Chapter |
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112, Tax Code, does not apply to a suit brought under that |
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subchapter before the effective date of this Act. That suit is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and the former law is continued in effect for that |
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purpose. |
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SECTION 11. This Act applies to a claim for refund, a |
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determination, or an administrative proceeding that is pending or |
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in progress on or after the effective date of this Act, without |
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regard to whether the taxes that are the subject of the claim, |
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determination, or proceeding were due before, on, or after that |
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date. |
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SECTION 12. This Act takes effect September 1, 2023. |