The bill, H.B. No. 1937, proposes amendments to the Texas Tax Code concerning tax and fee collection procedures and taxpayer suits. Key changes include the requirement for taxpayers to produce "sufficient" records and documentation to substantiate their claims, replacing the previous term "contemporaneous." Additionally, the bill introduces a new provision allowing taxpayers to bypass the redetermination process after a managed audit by filing a notice of intent, which must include specific details about the dispute. If a suit is filed regarding the results of a managed audit, the comptroller and attorney general are enjoined from collecting disputed amounts during the pendency of the suit.

Furthermore, the bill establishes penalties for late payments following a determination by the comptroller, with an exception for amounts disputed in a timely filed suit. It also clarifies that damages may be awarded if the court finds that the disputed amounts were raised solely for delay. The bill repeals a section of the Tax Code and applies to managed audits and proceedings that are pending or filed after its effective date. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)
House Committee Report: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)