88R4487 BEF-F
 
  By: Raymond H.B. No. 2525
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain tax and fee collection procedures and taxpayer
  suits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 111.0041, Tax Code, is
  amended to read as follows:
         Sec. 111.0041.  RECORDS[; BURDEN TO PRODUCE AND SUBSTANTIATE
  CLAIMS].
         SECTION 2.  Section 111.0041(b), Tax Code, is amended to
  read as follows:
         (b)  A taxpayer is required to keep records [, as provided by
  Subsection (c) with respect to the taxpayer's claim,] open for
  inspection under Subsection (a) for more than four years throughout
  any period when:
               (1)  any tax, penalty, or interest may be assessed,
  collected, or refunded by the comptroller; or
               (2)  an administrative hearing is pending before the
  comptroller, or a judicial proceeding is pending, to determine the
  amount of the tax, penalty, or interest that is to be assessed,
  collected, or refunded.
         SECTION 3.  Section 111.008(a), Tax Code, is amended to read
  as follows:
         (a)  If the comptroller is not satisfied with a tax report,
  [or] the amount of the tax required to be paid to the state by a
  person, or the amount of an overpayment of tax identified in a tax
  report or an audit, including a managed audit, the comptroller may
  compute and determine the amount of tax to be paid or the amount to
  be credited or refunded from information contained in the report or
  from any other information available to the comptroller.
         SECTION 4.  Section 111.009, Tax Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  A petition for redetermination must be filed before the
  expiration of 60 days after the date the notice of determination is
  issued or the redetermination is barred.
         (b-1)  If a petition for redetermination is not filed before
  the expiration of the period provided by Subsection (b) and a suit
  is not filed before the expiration of the period provided by Section
  112.251 [this subsection], the determination is final on the
  expiration of the later of those periods [period].
         SECTION 5.  Section 111.104(c), Tax Code, is amended to read
  as follows:
         (c)  A claim for a refund must:
               (1)  be written;
               (2)  state [fully and in detail] each reason or ground
  on which the claim is founded; and
               (3)  be filed before the expiration of the applicable
  limitation period as provided by this code or before the expiration
  of six months after a jeopardy or deficiency determination becomes
  final, whichever period expires later.
         SECTION 6.  Sections 112.051(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  If a person [who is required to pay a tax imposed by this
  title or collected by the comptroller under any law, including a
  local tax collected by the comptroller,] contends that a [the] tax
  imposed by this title or collected by the comptroller under any law,
  including a local tax collected by the comptroller, is unlawful,
  [or] that the public official charged with the duty of collecting
  the tax may not legally demand or collect the tax, or that an order,
  rule, or policy unlawfully or erroneously establishes or implies an
  obligation to pay or collect the tax, the person shall pay the
  amount [claimed by the state], and if the person intends to bring
  suit under this subchapter, the person must submit with the payment
  a protest.
         (b)  The protest must be in writing and must state [fully and
  in detail] each reason or ground for recovering the payment.
         SECTION 7.  Section 112.052(a), Tax Code, is amended to read
  as follows:
         (a)  A person may bring suit against the state to recover a
  tax that [required to be paid to the state if] the person has first
  paid [the tax] under protest as required by Section 112.051.
         SECTION 8.  Chapter 112, Tax Code, is amended by adding
  Subchapter F to read as follows:
  SUBCHAPTER F.  SUIT AFTER DETERMINATION
         Sec. 112.251.  SUIT TO CHALLENGE DETERMINATION. (a) A
  person may sue the comptroller to challenge the amount of an
  underpayment or overpayment of tax, penalty, or interest that has
  been the subject of a jeopardy or deficiency determination.
         (b)  The suit must be brought against both the comptroller
  and the attorney general and must be filed in a district court.
         (c)  Except as provided by Subsection (d), the suit must be
  filed not later than the 60th day after the issue date of the
  determination or it is barred.
         (d)  If the person filed a petition for redetermination under
  Section 111.009, the suit must be filed not later than the 60th day
  after the issue date of the denial of the motion for rehearing or it
  is barred.
         Sec. 112.252.  APPLICABLE PERIOD. The suit applies only to a
  tax liability period that is the subject of the determination.
         Sec. 112.253.  COLLECTION ACTIONS ENJOINED. After the
  comptroller has been timely served in a suit that complies with this
  subchapter, the comptroller and the attorney general are enjoined
  from collecting disputed amounts from the person bringing the suit
  during the pendency of the suit.
         Sec. 112.254.  ATTORNEY GENERAL TO REPRESENT COMPTROLLER.
  The attorney general shall represent the comptroller in a suit
  under this subchapter.
         Sec. 112.255.  TRIAL DE NOVO. In a suit under this
  subchapter, the issues shall be tried de novo as are other civil
  cases.
         Sec. 112.256.  JUDGMENT. (a) The amount of a judgment for
  the plaintiff shall be credited against any tax, penalty, or
  interest imposed by this title and due from the plaintiff.
         (b)  The remainder of the amount of a judgment not credited
  to a tax, penalty, or interest due shall be refunded to the
  plaintiff.
         (c)  The plaintiff is entitled to interest on the amount of
  tax included in a judgment for the plaintiff equal to the amount of
  interest that would be due if the tax had been deposited in the
  suspense account of the comptroller.  The interest accrues
  beginning from the date that the tax was paid until:
               (1)  the date that the amount is credited against the
  plaintiff's tax liability; or
               (2)  a date determined by the comptroller that is not
  sooner than 10 days before the actual date on which a refund warrant
  is issued.
         SECTION 9.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 111.0041(c) and (d);
               (2)  Section 111.105(e);
               (3)  Section 112.003;
               (4)  Section 112.052(d);
               (5)  Section 112.151(f); and
               (6)  Subchapter E, Chapter 112.
         SECTION 10.  The repeal by this Act of Subchapter E, Chapter
  112, Tax Code, does not apply to a suit brought under that
  subchapter before the effective date of this Act.  That suit is
  governed by the law as it existed immediately before the effective
  date of this Act, and the former law is continued in effect for that
  purpose.
         SECTION 11.  This Act applies to a claim for refund, a
  determination, or an administrative proceeding that is pending or
  in progress on or after the effective date of this Act, without
  regard to whether the taxes that are the subject of the claim,
  determination, or proceeding were due before, on, or after that
  date.
         SECTION 12.  This Act takes effect September 1, 2023.