HBA-KDB S.B. 640 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 640
By: Duncan
Ways & Means
3/14/2001
Engrossed



BACKGROUND AND PURPOSE 

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.  The comptroller's office estimates that requiring
taxpayers with a tax liability of $100,000 or more during the preceding
fiscal year to file their returns electronically may provide savings to the
general revenue fund by reducing such costs.  Senate Bill 640 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. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the comptroller of public accounts in
SECTION 1 (Sections 111.0625 and 111.0626, Tax Code) of this bill. 

ANALYSIS

Senate Bill 640 amends the Tax Code to require the comptroller of public
accounts (comptroller)  by rule to require a taxpayer who paid $100,000 or
more during the preceding fiscal year in a category of payments required
under  provisions regarding state taxation to transfer payments in that
category by means of electronic funds transfer if the comptroller
reasonably anticipates the person will pay at least that amount during the
current fiscal year.   

The bill requires the comptroller by rule to require electronic filing of a
report required under provisions regarding the limited sales, excise, and
use tax, gas production tax, oil production tax, or an international fuel
tax agreement for a taxpayer who is also required to transfer payments by
electronic funds transfer. The bill authorizes the comptroller to adopt
rules requiring electronic filing of other reports.  The bill specifies
that a rule adopted regarding the electronic filing of certain reports must
provide for a waiver from the electronic filing requirement for a taxpayer
who cannot comply.  The bill authorizes the comptroller to impose a penalty
of five percent of the tax due on a person who is required to but does not
file a report electronically. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.