S 146 TAX ADMINISTRATION CHANGES

Sen Benny Shendo

Actions: [2] STBTC/SJC/SFC-STBTC [8] DP/a-SJC [12] DP-SFC [18] DP/a [20] fl/a- PASSED/S (39-0) [18] HTRC-HTRC [19] DP - PASSED/H (64-0)

Scheduled: 03-18 07:00 am House Chambers

 Senate Bill 146 (SB 146) modifies the amount of tax liability requiring assessment by the Taxation and Revenue Department and which is allowed to be disputed by the taxpayer. SB 146 changes provisions for a taxpayer applying for a tax credit. The bill expands the definition of tax fraud to include the use of sales suppression software. SB 146 clarifies the process to protest property value or classification. 

 Senate Bill 146 (SB 146) doubles the amount to $50 that triggers the Department of Taxation and Revenue (TRD) to assume the tax liability is correct and permits an immediate assessment. This amount is also the threshold when the taxpayer may file a dispute of taxes owed.

A completed application for a credit is assumed to be approved if a TRD determination has not been made within 20 days of the filing date. Other procedural changes include requirement completeness of applications, requests for additional information, prohibiting refiling if the application if denied, and remedies that must be undertaken within 120 days of the date of denial. The two remedies are filing a protest with TRD or begin civil action in district court.

Tax evasion statute is expanded to encompass electronic tools criminals use to evade taxes. Sales suppression software is defined as phantomware that can create a second set of records or otherwise manipulate transaction records.

SB 146 directs a property owner to file a petition with the county assessor when protesting the property value or classification. For state assessed property, the protests are filed with an administrative hearing officer or file a claim for a refund with a district court. 

The effective date of SB 146 is July 1, 2023.
 

 02/17/2023 Senate Tax, Business, and Transportation Committee (STBTCa)

SB 146 STBTCa qualifies that the parties request or agree to an alternative service method for a notice of administrative hearing when protesting valuations. The notice is not limited to being mailed but expanded to include other methods. The bill clarifies that appeal officers are attached to the Administrative Hearings Office.