Highlights 77th Texas Legislature - Senate

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TAX
77 th Texas Legislature
Ad Valorem Tax Exemption of Motor Vehicles Leased for Personal Use - S.B. 248
by Senator Carona
House Sponsor: Representative Brimer
Under the Texas Tax Code, all leased vehicles are subject to ad valorem property taxes, while the statute
was originally intended to apply to businesses leasing fleets of vehicles, many such leases today are for
individuals interested in driving a new vehicle for a lower price.
Exempts from ad valorem taxes vehicles leased primarily for personal use. Provides that the exemption
would not apply in a municipality if the governing body adopted an ordinance before January 1, 2002,
providing for the continued taxation of leased motor vehicles. Makes application of this Act retroactive to
January 1, 2001.
Electronic Filing of Certain Tax Reports and Payments - S.B. 640
by Senator Duncan
House Sponsor: Representative McCall
Currently, the computer system of the comptroller of public accounts (comptroller) may receive electronic
data for the collection of 39 of the 63 taxes the comptroller collects. Electronic filing of tax data potentially
reduces the state's processing costs and turnaround time for refund payments.
Requires taxpayers with a tax liability of $100,000 or more during the preceding fiscal year to submit tax
payments electronically and requires certain tax reports to be filed electronically to the comptroller, if the
comptroller reasonably anticipates that the person would pay at least that amount in the current fiscal year.
Requires the comptroller to adopt, by rule, a requirement that oil production, international fuels tax
agreement, natural gas, and sales and use taxpayers that currently have to file tax payments electronically
also file their tax reports electronically. The comptroller could impose a penalty equivalent to five percent of
the tax due for failure to adhere to the requirements of the bill.
Suspense Account of the Comptroller of Public Accounts - S.B. 848
by Senators Ellis and Zaffirini
House Sponsor: Representative Junell
Under current law, when a tax assessment is protested by a taxpayer, the taxpayer must pay the disputed
amount. That amount is then deposited in Fund 0001. Interest on the payment is held in suspense and
unavailable for state spending. If the taxpayer is ultimately successful in protesting the payment, the
payment is returned with interest. If the state is successful in upholding the assessment, the payment plus
interest is credited to the fund to which the payment was due.
Requires the comptroller to transfer all remaining amounts of the accumulated interest to be deposited to
the credit of the appropriate funds or accounts into which accrued interest on the various taxes, fees, or
penalties that were protested are allocated by other law, rather than the suspense fund. Authorizes the
transfer of all remaining amounts of the accumulated interest accrued on the protested payments, on a pro
rata basis, in a comptroller suspense account to the General Revenue Fund 0001. Applies only to the
accumulated interest that remains credited to the suspense account of the comptroller of public accounts.
Senate Research Center 293