Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 1.
CENTRAL ADMINISTRATION
Subchapter A. PRACTICE AND PROCEDURE
1.
PRACTICE AND PROCEDURE
34 TAC §1.5
The Comptroller of Public Accounts adopts an amendment to §1.5,
concerning initiation of a hearing, with changes to the proposed text as published
in the October 15, 1999, issue of the
Texas Register
(24 TexReg 8919).
The Tax Code, §154.1142(b) and §155.0592(b), was amended by Senate
Bill 17, 76th Legislature, 1999, effective September 1, 1999. The amendment
provides that taxpayers have an opportunity for a hearing, rather than requiring
a hearing on all tobacco compliance violations.
Subsection (a) of the proposed rule has been revised to conform to changes
to Tax Code, §154.309(b) and §155.186(b), enacted by House Bill
3211, 76th Legislature, 1999, effective October 1, 1999. Language stating
that redetermination requests pursuant to the Tax Code, §154.309 or §155.186,
must be made within 15 working days of the receipt of the determination has
been deleted. The revised text clarifies that all requests for redetermination,
including those made pursuant to the Tax Code, §154.309(b) and §155.186(b),
must be filed not later than 30 days after the date notice of the deficiency
determination is issued.
No comments were received regarding adoption of the amended section.
This amendment is adopted 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, §§111.009, 154.309, 154.1142,
155.0592, and 155.186.
§1.5.Initiation of a Hearing.
(a)
Redetermination of a deficiency or jeopardy determination.
A taxpayer may request a redetermination hearing by sending the agency a written
request for redetermination. The time limit for filing a request is 30 days
for a deficiency determination and 20 days for a jeopardy determination. The
request must include a statement of grounds that sets out in detail the reasons
the taxpayer does not agree with the determination. If the statement of grounds
is not received within the time limit or an extension of the time limit granted
prior to the expiration of the time limit, a hearing will not be granted and
the taxpayer must pay the determination and request a refund before any objection
to the determination can be considered.
(b)
Required documentary evidence. The agency's auditor may
request in writing that the taxpayer produce documentary evidence on any issue
for inspection. The written request must be served no later than five working
days following the exit conference and must identify with specificity the
nature of the documents sought, including the schedule or examination to which
the documents relate. If such documentary evidence is not submitted within
60 days after a petition for redetermination is acknowledged, such documentary
evidence will be inadmissible for purposes of the redetermination hearing.
(c)
Refund of tax paid. Within the time limits provided in
the Tax Code, §111.104(c), a taxpayer may request a refund of any tax,
penalty, or interest paid to the comptroller by sending the agency a written
request. The request must include a statement of grounds that sets out in
detail the grounds on which the claim is founded. If no grounds are stated
as a basis for the claim, a hearing will not be granted and the claim will
be denied. If the claim is granted for any tax amount, any corresponding penalty
and interest amount previously paid will be refunded.
(d)
Hearings involving licenses and permits. The agency will
initiate hearings concerning the denial, suspension, or revocation of licenses
or permits by sending written notice to the taxpayer, which notice will include
a statement of the matters asserted and procedures to be followed.
(e)
An oral hearing under the Tax Code, §154.1142 or §155.0592,
will be set if requested by the permit holder within 15 calendar days of the
receipt of the notice of violation(s).
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 23, 2000.
TRD-200001344
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 14, 2000
Proposal publication date: October 15, 1999
For further information, please call: (512) 463-3699
Subchapter F. MOTOR VEHICLE SALES TAX
34 TAC §3.61
The Comptroller of Public Accounts adopts an amendment to §3.61,
concerning credit for motor vehicle sales or use tax paid to another state,
without changes to the proposed text as published in the December 3, 1999,
issue of the
Texas Register
(24 TexReg 10830).
House Bill 2140, 76th Legislature, 1999, amends the Tax Code, §152.023,
effective September 1, 1999, providing that a new resident to Texas bringing
a leased vehicle into this state may qualify for the new resident use tax
in lieu of the 6 1/4% use tax and increasing the new resident tax rate.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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, §152.023.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 28, 2000.
TRD-200001474
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 19, 2000
Proposal publication date: December 3, 1999
For further information, please call: (512) 463-4062
34 TAC §3.70
The Comptroller of Public Accounts adopts an amendment to §3.70,
concerning motor vehicle leases and sales, without changes to the proposed
text as published in the December 3, 1999, issue of the
Texas Register
(24 TexReg 10831).
House Bill 2140, 76th Legislature, 1999, amends the Tax Code, §152.023,
effective September 1, 1999, providing that a new Texas resident bringing
a leased vehicle into this state may qualify for the new resident use tax
in lieu of the 6.25% use tax, and increases the new resident tax rate.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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, §152.023.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 28, 2000.
TRD-200001475
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 19, 2000
Proposal publication date: December 3, 1999
For further information, please call: (512) 463-4062
34 TAC §3.161
The Comptroller of Public Accounts adopts an amendment to §3.161,
concerning definitions, exemptions, and exemption certificate, without changes
to the proposed text as published in the December 3, 1999, issue of the
The 76th Legislature, 1999, in House Bill 1014, amended the Tax Code, Chapter
156, to limit the exemption for public and private institutions of higher
education to Texas public or private instutions of higher education as defined
in the Education Code, §61.003.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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, §156.102.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 25, 2000.
TRD-200001428
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 16, 2000
Proposal publication date: December 3, 1999
For further information, please call: (512) 463-4062
34 TAC §3.173
The Comptroller of Public Accounts adopts an amendment to §3.173,
concerning refunds on gasoline and diesel fuel tax, without changes to the
proposed text as published in the November 19, 1999, issue of the
Texas Register
(24 TexReg 10302).
The amendment to subsection (c) provides gasoline distributors, diesel
fuel suppliers, and bonded diesel fuel users a four year statute of limitations
to claim a refund of tax under certain circumstances.
Subsection (d)(3)(A) is being amended to provide more flexible record keeping
requirements when claiming a refund on a drive-away theft.
A new subsection (d)(5) is being added to provide refund guidelines for
lessors of off-highway equipment, and the remaining subsections are being
renumbered.
Typographical corrections are being made to delete the hyphen between the
words "power" and "take-off."
One comment was received from Exxon Mobil Corporation regarding whether
an amended tax return would be required as stated in subsection (c)(2) or
if a credit could be taken on a current tax return. The four year statute
of limitations for tax erroneously paid to the comptroller applies to fuel
acquired on or after October 1, 1997. A one year statute of limitations applies
to fuel acquired before October 1, 1997. An amended tax return is necessary
to determine whether the four year statute of limitations applies or the one
year statute of limitation. No change to the text will be made as a result
of this comment.
This amendment is adopted 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, §§153.104, 153.119, 153.121,
153.203, 153.205, 153.222, and 153.224.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 28, 2000.
TRD-200001476
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 19, 2000
Proposal publication date: November 19, 1999
For further information, please call: (512) 463-4062
34 TAC §3.561
The Comptroller of Public Accounts adopts an amendment to §3.561,
concerning enterprise zones and defense economic readjustment zones, without
changes to the proposed text as published in the December 3, 1999, issue of
the
Texas Register
(24 TexReg 10832).
Subsection (g) substitutes "enterprise project" for "qualified business"
in accordance with House Bill 3658, 76th Legislature, 1999. A provision is
added to subsection (g) to prohibit the enterprise zone deduction if a corporation
establishes its eligibility for a capital investment credit. This amendment
is in accordance with Senate Bill 441, 76th Legislature, 1999.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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, §171.1015 and §171.805.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 25, 2000.
TRD-200001430
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 16, 2000
Proposal publication date: December 3, 1999
For further information, please call: (512) 463-4062
34 TAC §3.1201
The Comptroller of Public Accounts adopts an amendment to §3.1201,
concerning fee for outdoor advertising of cigarettes or tobacco products,
without changes to the proposed text as published in the December 10, 1999,
issue of the
Texas Register
(24 TexReg 11090).
The Tax Code, §154.1142(b) and §155.0592(b), was amended by Senate
Bill 17, 76th Legislature, 1999, effective September 1, 1999. The amendment
provides taxpayers have an opportunity for a hearing, rather than requiring
a hearing on all tobacco compliance violations.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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, §154.1142 and §155.0592.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on February 23, 2000.
TRD-200001345
Martin Cherry
Special Counsel
Comptroller of Public Accounts
Effective date: March 14, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 463-3699
Chapter 3.
TAX ADMINISTRATION
Subchapter K. HOTEL OCCUPANCY TAX
Subchapter L. MOTOR FUEL TAX
Subchapter V. FRANCHISE TAX
Subchapter JJ. CIGARETTE AND TOBACCO PRODUCTS REGULATION