The bill, H.B. No. 3994, amends various sections of the Texas Tax Code to clarify the computation of tax penalties and interest amounts. It introduces new provisions that specify 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. Specifically, Section 111.060 is amended to include a new Subsection (e) that defines the amount of delinquent tax for interest calculations, while Section 111.061 adds Subsection (d) for penalties. Additionally, Section 111.064 is updated to clarify the interest on refunds, including a new Subsection (a-1) that outlines how to compute interest on overpayments after accounting for any underpayments.

Furthermore, Section 151.508 is revised to change the language regarding the comptroller's authority to offset overpayments against underpayments, making it mandatory rather than discretionary. The bill emphasizes that these amendments serve as clarifications of existing law, ensuring that the changes do not imply any inconsistency with prior regulations. The act 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)