Bill > HB2577

This bill modifies the Texas Tax Code by adding a new section that restricts the contents of notices sent to taxable entities that fail to file their franchise tax report on time. Specifically, the bill prohibits tax authorities from including a specific tax amount in a notice based solely on the entity's failure to file the required report. The new provision aims to prevent premature or potentially inaccurate tax assessments by ensuring that initial notices for late filing do not automatically specify an exact tax liability. The bill would take effect immediately if it receives a two-thirds vote in both houses of the Texas Legislature, or otherwise on September 1, 2025. This change appears designed to provide businesses with more procedural fairness by preventing potentially misleading or presumptive tax notices before a complete review of the entity's tax situation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2577