Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter A. GENERAL RULES
34 TAC §3.2
The Comptroller of Public Accounts proposes an amendment
to §3.2, concerning application of payments. This amendment incorporates
the text of the previous §3.3 of this title (relating to Unjust Enrichment).
The comptroller has determined that the consolidation of sections dealing
with similar subject matter will benefit taxpayers by providing a more effective
means of obtaining information. The previous §3.3 has been repealed and
replaced with a new section.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no significant
fiscal impact on the state or units of local government.
Mr. LeBas also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be in providing taxpayers with a more efficient means of obtaining
tax information. This rule is adopted under the Tax Code, Title 2, and does
not require a statement of fiscal implications for small businesses. There
is no significant anticipated economic cost to individuals who are required
to comply with the proposed rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager,
Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.
This amendment is proposed under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The amendment implements Tax Code, Chapter 111.
§3.2.Application of Payments ; Unjust Enrichment .
(a) - (b)
(No change.)
(c)
Unjust enrichment.
(1)
If amounts are collected as tax in transactions on which
tax is not due, the comptroller will require, under the doctrine of unjust
enrichment, that these amounts be remitted to the state or be refunded to
the customers from whom they were collected.
(2)
In the case of refunded amounts, documentary evidence must
be retained establishing the transaction, the amount collected, the party
from whom collected, the amount refunded, and the party to whom refund is
made.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on May 8, 2002.
TRD-200202855
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Earliest possible date of adoption: June 23, 2002
For further information, please call: (512) 463-3699
34 TAC §3.569
The Comptroller of Public Accounts proposes an amendment
to §3.569, concerning Texas Youth Commission credit. In accordance with
Senate Bill 1125, 77th Legislature, 2001, subsection (e)(1) is amended to
provide revised guidelines for limitations applicable to the credit. The section
is renamed "Texas Youth Commission Credit" to avoid confusion with the section
concerning child care credits.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect there will be no significant revenue
impact on the state or local government. The proposed amendment would benefit
the public by providing additional information to taxpayers regarding the
Texas Youth Commission Credit and their franchise tax responsibilities.
Mr. LeBas also has determined that for each year of the first five years
the rule is in effect the public benefit anticipated as a result of enforcing
the rule will be in providing new information regarding tax responsibilities.
This rule is adopted under Tax Code, Title 2, and does not require a statement
of fiscal implications for small businesses. There is no significant anticipated
economic cost to individuals who are required to comply with the proposed
rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager,
Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.
This amendment is proposed under the Tax Code, §111.002,
which provides the comptroller with the authority to prescribe, adopt, and
enforce rules relating to the administration and enforcement of the provisions
of the Tax Code, Title 2.
The amendment implements the Tax Code, §§171.681-171.687.
§3.569. Texas Youth Commission [
(a)
Effective date. This section is effective for reports originally
due on or after January 1, 1996, and applies only for wages paid or incurred
on or after January 1, 1996.
(b)
Definitions. The following terms, when used in this section,
shall have the following meanings, unless the context clearly indicates otherwise.
(1)
Due date--The due date of the franchise tax report, including
extensions, if any.
(2)
Eligible child--A person who:
(A)
is committed to the Texas Youth Commission (TYC) under
the Family Code, Title 3, other than a commitment under a determinate sentence
under the Family Code, §54.04(d)(3), §54.04(m), or §54.05(f);
and
(B)
resides at a facility of the TYC.
(c)
Amount of credit--eligible child.
(1)
A corporation may claim a credit on its report for 10%
of the wages the corporation paid to an eligible child, or
to
the
TYC for the benefit of the child, during the period upon which the report
is based.
(2)
By the due date, the eligible child must have been continuously
employed by the corporation for at least six months. However, the eligible
child need not be employed on the due date.
(3)
For purposes of claiming the credit, there is no maximum
limit on the length of time the eligible child may be employed.
(4)
A certification from TYC must accompany the report and
must be filed on or before the due date of the report. The certification must
include:
(A)
the name of the corporation paying the wages;
(B)
the name of each eligible child to which or for which the
corporation paid wages;
(C)
the amount of wages paid
by the corporation
to each eligible child or to TYC for the benefit of the eligible child [
(D)
the date each wage was paid.
(d)
Amount of credit--former eligible child.
(1)
On or before the due date of the report, a corporation
may claim a credit on its report for 10% of the wages the corporation paid
to a former eligible child (employee) during the period upon which the report
is based.
(2)
By the due date, the employee must have been continuously
employed by the corporation for at least six months while
the employee
was
an eligible child and
for
at least one year after the
employee was released from commitment to TYC or released under supervision
by TYC. However, the person need not be employed on the due date.
(3)
The credit may only be claimed for one year's wages for
each employee. The credit does not have to be claimed for the first year's
wages after release.
(4)
The corporation must be able to prove, upon audit, that
the employment is substantially similar to, requires more skill than, or provides
greater opportunity than the employee had with the corporation while
the employee was
an eligible child. This can be done by showing that
the hours worked per week and the hourly rate are equal to or greater than
the hours worked per week and hourly rate while
the employee was
an eligible child.
(e)
Limitations--eligible child and former eligible child.
(1)
For reports that are originally due before January
1, 2002, the
[
(2)
The credit must be claimed on the report form.
(3)
Only one credit for each wage paid may be taken.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on May 9, 2002.
TRD-200202861
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Earliest possible date of adoption: June 23, 2002
For further information, please call: (512) 475-0387
Subchapter V. FRANCHISE TAX Eligible Child ] Credit.
by the corporation
] during the period upon which the report is based;
and
The
] credit may not exceed 50% of the amount
of tax due for the report after all other credits and deductions, including,
but not limited to, the business loss carryover, are taken.
For reports
that are originally due on or after January 1, 2002, the credit may not exceed
50% of the amount of franchise tax due for the report before any other tax
credits are applied.