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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of the discount allowed for prepayment of |
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sales and use taxes and the allocation of certain revenue from those |
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taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.424, Tax Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1), (e), and (f) |
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to read as follows: |
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(a) In addition to the amount permitted to be deducted and |
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withheld under Section 151.423, a [A] taxpayer who prepays the |
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taxpayer's tax liability on the basis of a reasonable estimate of |
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the tax liability for a quarter in which a prepayment is made or for |
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a month in which a prepayment is made may deduct and withhold the |
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lesser of the following, as determined by the comptroller under |
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Subsection (e): |
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(1) 1.25 percent of the amount of the prepayment; or |
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(2) an annually adjusted percentage of the amount of |
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the prepayment that yields an annualized rate of return equal to the |
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prime rate as published in The Wall Street Journal on the first |
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business day of each calendar year, plus four percent [in addition
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to the amount permitted to be deducted and withheld under Section
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151.423 of this code]. |
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(a-1) A reasonable estimate of the tax liability under |
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Subsection (a) must be at least 90 percent of the tax ultimately due |
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or the amount of tax paid in the same quarter, or month, if a monthly |
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prepayer, in the last preceding year. Failure to prepay a |
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reasonable estimate of the tax will result in the loss of the entire |
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prepayment discount. |
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(e) Not later than January 5 of each year, the comptroller |
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shall: |
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(1) determine the percentage of a taxpayer's |
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prepayment that may be deducted and withheld under Subsection (a); |
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and |
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(2) publish the percentage determined under this |
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subsection on the comptroller's Internet website. |
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(f) The percentage determined under Subsection (e) applies |
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to a deduction and withholding from a prepayment of tax liability |
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that a taxpayer makes on or after January 15 of the year the |
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comptroller makes the determination and before January 15 of the |
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succeeding year. |
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SECTION 2. Section 151.801, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-2) to read as |
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follows: |
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(a) Except for the amounts allocated under Subsections |
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(a-2), (b), and (c), all proceeds from the collection of the taxes |
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imposed by this chapter shall be deposited to the credit of the |
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general revenue fund. |
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(a-2) If the percentage determined under Section |
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151.424(a)(2) applies in determining the amount a taxpayer may |
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deduct and withhold under Section 151.424 from taxes imposed by |
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this chapter, the comptroller shall determine the difference |
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between the amount the taxpayer would deduct and withhold if the |
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percentage under Section 151.424(a)(1) applied and the amount the |
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taxpayer actually deducts and withholds under Section |
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151.424(a)(2). The comptroller shall deposit an amount equal to |
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that difference in an account in the general revenue fund to be |
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administered by the Texas Higher Education Coordinating Board. |
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Money in the account may be appropriated only to provide grants |
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under Subchapter M, Chapter 56, Education Code. |
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SECTION 3. The comptroller of public accounts shall make |
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the initial determination required by Section 151.424(e), Tax Code, |
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as added by this Act, not later than January 5, 2016. |
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SECTION 4. Section 151.424, Tax Code, as amended by this |
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Act, applies to a prepayment of tax liability made on or after |
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January 15, 2016. A prepayment of tax liability made before January |
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15, 2016, is governed by the law in effect immediately preceding the |
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effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 5. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 6. This Act takes effect September 1, 2015. |