The bill, S.B. No. 1337, amends various sections of the Texas Tax Code to clarify the computation of tax penalties and interest amounts. Specifically, it introduces new provisions that define how to calculate the amount of delinquent tax and penalties by allowing taxpayers to deduct any overpayments made for the same tax period or for a preceding period. This is reflected in the amendments to Sections 111.060 and 111.061, where new subsections (e) and (d) are added, respectively, to specify that the amount due is the remaining balance after accounting for overpayments.

Additionally, the bill modifies Section 111.064 to clarify the interest calculation on refunds, stating that the interest on overpayments will be based on the amount remaining after deducting any underpayments. The bill also changes Section 151.508 to require the comptroller to offset overpayments against underpayments, penalties, and interest, ensuring that any interest accrued on the overpayment is included in the offset. Overall, these amendments aim to provide clearer guidelines for taxpayers regarding the calculation of penalties and interest, while also ensuring that the law is consistent and understandable.

Statutes affected:
Introduced: Tax Code 111.060, Tax Code 111.061, Tax Code 111.064, Tax Code 151.508 (Tax Code 151, Tax Code 111)