Bill Text: TX HB35 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the amount of the discount allowed for prepayment of sales and use taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2015-05-07 - Considered in Calendars [HB35 Detail]
Download: Texas-2015-HB35-Comm_Sub.html
84R11111 CJC-D | ||
By: Murphy, Clardy | H.B. No. 35 |
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relating to the amount of the discount allowed for prepayment of | ||
sales and use taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.424, Tax Code, is amended by | ||
amending Subsection (a) and adding Subsections (a-1), (e), and (f) | ||
to read as follows: | ||
(a) In addition to the amount permitted to be deducted and | ||
withheld under Section 151.423, a [ |
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taxpayer's tax liability on the basis of a reasonable estimate of | ||
the tax liability for a quarter in which a prepayment is made or for | ||
a month in which a prepayment is made may deduct and withhold the | ||
lesser of the following, as determined by the comptroller under | ||
Subsection (e): | ||
(1) 1.25 percent of the amount of the prepayment; or | ||
(2) an annually adjusted percentage of the amount of | ||
the prepayment that yields an annualized rate of return equal to the | ||
prime rate as published in The Wall Street Journal on the first | ||
business day of each calendar year, plus four percent [ |
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(a-1) A reasonable estimate of the tax liability under | ||
Subsection (a) must be at least 90 percent of the tax ultimately due | ||
or the amount of tax paid in the same quarter, or month, if a monthly | ||
prepayer, in the last preceding year. Failure to prepay a | ||
reasonable estimate of the tax will result in the loss of the entire | ||
prepayment discount. | ||
(e) Not later than January 5 of each year, the comptroller | ||
shall: | ||
(1) determine the percentage of a taxpayer's | ||
prepayment that may be deducted and withheld under Subsection (a); | ||
and | ||
(2) publish the percentage determined under this | ||
subsection on the comptroller's Internet website. | ||
(f) The percentage determined under Subsection (e) applies | ||
to a deduction and withholding from a prepayment of tax liability | ||
that a taxpayer makes on or after January 15 of the year the | ||
comptroller makes the determination and before January 15 of the | ||
succeeding year. | ||
SECTION 2. The comptroller of public accounts shall make | ||
the initial determination required by Section 151.424(e), Tax Code, | ||
as added by this Act, not later than January 5, 2016. | ||
SECTION 3. Section 151.424, Tax Code, as amended by this | ||
Act, applies to a prepayment of tax liability made on or after | ||
January 15, 2016. A prepayment of tax liability made before January | ||
15, 2016, is governed by the law in effect immediately preceding the | ||
effective date of this Act, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 4. The change in law made by this Act does not | ||
affect tax liability accruing before the effective date of this | ||
Act. That liability continues in effect as if this Act had not been | ||
enacted, and the former law is continued in effect for the | ||
collection of taxes due and for civil and criminal enforcement of | ||
the liability for those taxes. | ||
SECTION 5. This Act takes effect October 1, 2015. |