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TexasSB 26689th Legislature Regular SessionSenateWALLET

Relating to certain tax and fee collection procedures and taxpayer suits.

Sponsored By: Tom Craddick, Charles Perry (Republican)

Signed by Governor

Civil Remedies & LiabilitiesTaxation--GeneralTaxation--Property-Appeal of Tax DecisionsAUDITS & AUDITORSATTORNEY GENERALCOMPTROLLER OF PUBLIC ACCOUNTS

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

More flexible records for tax disputes

Taxpayers challenging tax, penalty, or interest amounts can use sufficient records, including electronic images, invoices, vouchers, and contracts. Records no longer have to be created when the transactions took place. They must still support the claim and fit the tax or fee and transactions involved. This standard applies in agency and court cases, including managed-audit disputes, but does not itself change taxes owed.

Tax lawsuit penalty relief has limits

Taxpayers who timely sue under Tax Code Chapter 112, Subchapter E, get the 10% late-payment penalty abated on disputed amounts. That penalty otherwise applies when amounts remain unpaid 20 days after a final redetermination decision. A 10% penalty applies to amounts still unpaid 20 days after the court's final judgment becomes final. This later penalty excludes penalties and interest from its calculation.

Taxpayers gain court access; liens remain

Taxpayers can challenge managed audits under Tax Code Sections 151.0231 or 201.3021 in district court without first seeking agency redetermination. They must file notice within 60 days after the results letter, stating material facts, legal grounds, and disputed amounts. They must sue within 60 days after a required conference ends, or within 90 days after notice if the Comptroller does not timely require a conference. The petition must name the Comptroller and attorney general, state disputed amounts, and attach the notice. Court issues are limited to the stated grounds, facts, and tax periods. After timely service on the Comptroller, collection of disputed underpayments pauses during the managed-audit suit; qualifying Subchapter C suits also receive collection protection. The state can still assert tax liens or require security for the full disputed amount, including penalties and accrued interest. Courts can award damages when amounts were disputed solely to delay. The law covers managed audits in progress and proceedings pending or filed on or after its effective date, regardless of tax due dates.

Sponsors & Cosponsors

Sponsors

  • Tom Craddick

    House

  • Charles Perry

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 156 • No: 1

House vote • 5/10/2025

Record vote

Yes: 129 • No: 0

Senate vote • 4/10/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/10/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Ways & Means

Yes: 12 • No: 1

Senate vote • Unknown

Committee vote: Finance

Yes: 15 • No: 0

Bill Text

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