HB3994 - Relating to the computation of certain tax penalties and interest amounts.

  89R3837 CJD-F     By: Troxclair H.B. No. 3994       A BILL TO BE ENTITLED   AN ACT   relating to the computation of certain tax penalties and interest   amounts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 111.060, Tax Code, is amended by   amending Subsection (a) and adding Subsection (e) to read as   follows:          (a)   Subject to Subsection (e), the [ The ] yearly interest   rate on all delinquent taxes imposed by this title is at the rate of   12 percent for report periods originally due on or before December   31, 1999, after which the rate of interest is variable and   determined as provided in Subsection (b).           (e)     For the purpose of computing interest under this   section, the amount of delinquent tax is the amount that remains due   after deducting any overpayments of the same tax made by the   taxpayer:                 (1)     for the same period during which the delinquent   tax was originally due; or                 (2)     for a period preceding the period described by   Subdivision (1).          SECTION 2.  Section 111.061, Tax Code, is amended by adding   Subsection (d) to read as follows:           (d)     For the purpose of computing penalties under this   section, the amount of tax due is the amount that remains due after   deducting any overpayments of the same tax made by the taxpayer:                 (1)     for the same period during which the failure to pay   the tax or file the report or other grounds for the penalty   occurred; or                 (2)     for a period preceding the period described by   Subdivision (1).          SECTION 3.  Section 111.064, Tax Code, is amended by   amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  Except as otherwise provided by this section, for a   refund under this chapter, interest is at the rate that is the   lesser of the annual rate of interest earned on deposits in the   state treasury during November of the previous calendar year, as   determined by the comptroller, or the rate set in Section 111.060,   and accrues on the amount of an overpayment or erroneous payment   that remains after deducting any underpayments under Subsection   (a-1) [ found to be erroneously paid ] for a period:                (1)  beginning on the later of 60 days after the date of   payment or the due date of the tax report; and                (2)  ending on, as determined by the comptroller,   either the date of allowance of credit on account of the   comptroller's final decision or audit or a date not more than 10   days before the date of the refund warrant.           (a-1)     For the purpose of computing interest under   Subsection (a) for an overpayment or erroneous payment of tax, the   amount of the overpayment or erroneous payment is the amount that   remains after deducting any underpayments of the same tax made by   the taxpayer:                 (1)     for the same period during which the tax that was   overpaid or erroneously paid was originally due; or                 (2)     for a period preceding the period described by   Subdivision (1).          SECTION 4.  Section 151.508, Tax Code, is amended to read as   follows:          Sec. 151.508.  OFFSETS.  In making a determination, the   comptroller shall [ may ] offset an overpayment for one or more   periods against an underpayment, penalty, and interest accrued on   the underpayment for the same period or one or more other periods.     Any interest accrued on the overpayment shall be included in the   offset.          SECTION 5.  The amendments made by this Act are   clarifications of existing law and do not imply that existing law   may be construed as inconsistent with the law as amended by this   Act.          SECTION 6.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.