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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of certain tax penalties and interest |
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amounts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 111.060, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (e) to read as |
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follows: |
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(a) Subject to Subsection (e), the [The] yearly interest |
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rate on all delinquent taxes imposed by this title is at the rate of |
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12 percent for report periods originally due on or before December |
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31, 1999, after which the rate of interest is variable and |
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determined as provided in Subsection (b). |
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(e) For the purpose of computing interest under this |
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section, the amount of delinquent tax is the amount that remains due |
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after deducting any overpayments of the same tax made by the |
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taxpayer: |
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(1) for the same period during which the delinquent |
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tax was originally due; or |
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(2) for a period preceding the period described by |
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Subdivision (1). |
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SECTION 2. Section 111.061, Tax Code, is amended by adding |
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Subsection (d) to read as follows: |
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(d) For the purpose of computing penalties under this |
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section, the amount of tax due is the amount that remains due after |
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deducting any overpayments of the same tax made by the taxpayer: |
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(1) for the same period during which the failure to pay |
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the tax or file the report or other grounds for the penalty |
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occurred; or |
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(2) for a period preceding the period described by |
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Subdivision (1). |
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SECTION 3. Section 111.064, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) Except as otherwise provided by this section, for a |
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refund under this chapter, interest is at the rate that is the |
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lesser of the annual rate of interest earned on deposits in the |
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state treasury during November of the previous calendar year, as |
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determined by the comptroller, or the rate set in Section 111.060, |
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and accrues on the amount of an overpayment or erroneous payment |
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that remains after deducting any underpayments under Subsection |
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(a-1) [found to be erroneously paid] for a period: |
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(1) beginning on the later of 60 days after the date of |
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payment or the due date of the tax report; and |
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(2) ending on, as determined by the comptroller, |
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either the date of allowance of credit on account of the |
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comptroller's final decision or audit or a date not more than 10 |
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days before the date of the refund warrant. |
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(a-1) For the purpose of computing interest under |
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Subsection (a) for an overpayment or erroneous payment of tax, the |
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amount of the overpayment or erroneous payment is the amount that |
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remains after deducting any underpayments of the same tax made by |
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the taxpayer: |
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(1) for the same period during which the tax that was |
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overpaid or erroneously paid was originally due; or |
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(2) for a period preceding the period described by |
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Subdivision (1). |
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SECTION 4. Section 151.508, Tax Code, is amended to read as |
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follows: |
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Sec. 151.508. OFFSETS. In making a determination, the |
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comptroller shall [may] offset an overpayment for one or more |
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periods against an underpayment, penalty, and interest accrued on |
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the underpayment for the same period or one or more other periods. |
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Any interest accrued on the overpayment shall be included in the |
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offset. |
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SECTION 5. The amendments made by this Act are |
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clarifications of existing law and do not imply that existing law |
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may be construed as inconsistent with the law as amended by this |
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Act. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |