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Committee approves bill letting taxpayers sue after a managed-audit bypass conference
Summary
The committee voted 13–0 to report Senate Bill 266, which would let taxpayers challenge managed-audit results in district court after a bypass conference and stay collection actions while suit is pending, subject to bond requirements.
The Committee on Finance voted 13–0 to report Senate Bill 266 favorably after Senator Perry explained that the bill extends an existing ‘‘bypass’’ option to managed-audit refund procedures. The bill’s language mirrors changes made in prior legislation (SB 903) and was developed with the comptroller’s office and stakeholders.
Under the measure as explained by Senator Perry and a resource witness, the bill would allow a taxpayer to file suit in district court after completing a bypass conference with the comptroller to challenge results of managed audits for sales tax or natural gas production tax. The bill enjoins collection action by the comptroller and the attorney general while a suit is pending, though the comptroller may require the taxpayer to post a bond or other security to protect the State’s interest. The measure also revises evidentiary rules at hearings to allow taxpayers to produce “sufficient evidence” rather than only contemporaneous evidence.
John Christian of Ryan LLC testified in support, telling the committee that the contemporaneous-evidence requirement can be a barrier for taxpayers and supporting the statutory change. After public testimony concluded with no opposing witnesses, the committee moved to report the bill, and the clerk recorded 13 ayes, no nays.
Senator Perry said the change is intended to reduce time and expense for taxpayers who otherwise must pursue the State Office of Administrative hearings and then restart appeals; the state’s protections include the comptroller’s ability to require a bond.
