HBA-LJP H.B. 3608 77(R)     BILL ANALYSIS


Office of House Bill AnalysisH.B. 3608
By: Davis, Yvonne
Ways & Means
4/1/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, if the comptroller finds an amount of tax, penalty, or
interest that has been unlawfully or erroneously collected, the comptroller
is authorized to credit the taxpayer from money appropriated for tax refund
purposes.  A person who claims a refund is entitled to a hearing on the
claim and to 20 days notification of the time and place of the hearing, and
the decision of the comptroller following the hearing becomes final in 20
days after service on the claimant of the notice of the order or decision.
Under these current provisions, it is possible that some erroneously
collected money will not be refunded to the taxpayer.  House Bill 3608
requires the comptroller to refund erroneously collected taxes, penalties,
or interests and extends the time period, from 20 days to 30 days, of the
notification to the taxpayer of a hearing for a refund claim and the
decision of the comptroller on the hearing becomes final. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3608 amends the Tax Code to require, rather than authorize, the
comptroller to refund to a taxpayer the remainder of an amount of tax,
penalty, or interest that is found by the comptroller to be erroneously
collected from a credit against any other amount due and payable.  The bill
removes the provision relating to the comptroller refunding a taxpayer from
money appropriated for tax refund purposes. 

The bill extends, from 20 days to 30, the time period that a person
claiming a refund and requesting a hearing in accordance with procedures
prescribed by the comptroller is entitled to notice of the time and place
of the hearing.  The bill also extends, from 20 days to 30 days after
service on the claimant of the notice of the order or decision, the time
period that a decision of the comptroller following the hearing on the
claim becomes final. 

The bill provides that no taxes, penalties, or interest  may be refunded to
a person who has collected the taxes from another person unless the person
has refunded all the taxes, penalties, and interest to the person from whom
the taxes were collected. 

EFFECTIVE DATE

October 1, 2001.