The bill 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. This applies to both the interest on delinquent taxes and the penalties for failure to pay or file. The bill also clarifies the interest calculation for refunds, stating that the amount of overpayment is determined after deducting any underpayments of the same tax.

Additionally, the bill modifies the language regarding offsets by requiring the comptroller to offset overpayments against underpayments, penalties, and interest accrued on the underpayment for the same or other periods. The amendments are presented as clarifications of existing law, ensuring that the changes do not imply any inconsistency with prior regulations. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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