Tex. Tax Code Section 111.016
Payment to the State of Tax Collections

(a)

Any person who receives or collects a tax or any money represented to be a tax from another person holds the amount so collected in trust for the benefit of the state and is liable to the state for the full amount collected plus any accrued penalties and interest on the amount collected.

(a-1)

A person is presumed to have received or collected a tax or money represented to be a tax for the purpose of this section if the person files, or causes to be filed, a tax return or report with the comptroller showing tax due. A person, including a person who is on the accrual method of accounting, may rebut this presumption by providing satisfactory documentation to the comptroller that the tax on a transaction or series of transactions was not collected. The documentation is subject to verification by the comptroller.

(a-2)

A retailer who advertises, holds out, or states that the retailer will pay the tax as provided by Section 151.704 (Sales Tax Absorption; Criminal Penalty)(b) and makes a sale of a taxable item:

(1)

is presumed to have received or collected the amount of the taxes imposed by Chapter 151 (Limited Sales, Excise, and Use Tax) on the sale or storage, use, or consumption in this state of the taxable item;

(2)

shall hold the amount described by Subdivision (1) in trust for the benefit of the state; and

(3)

is liable to the state for the amount described by Subdivision (1) plus any accrued penalties and interest on the amount.

(b)

With respect to tax or other money subject to the provisions of Subsection (a) or (a-2), an individual who controls or supervises the collection of tax or money from another person, or an individual who controls or supervises the accounting for and paying over of the tax or money, and who wilfully fails to pay or cause to be paid the tax or money is liable as a responsible individual for an amount equal to the tax or money not paid or caused to be paid. The liability imposed by this subsection is in addition to any other penalty provided by law. The dissolution of a corporation, association, limited liability company, or partnership does not affect a responsible individual’s liability under this subsection.

(b-1)

Notwithstanding any other provision of this title, if the tax liability of a corporation, association, limited liability company, limited partnership, or other legal entity with which the responsible individual was employed or associated has either not become final, is subject to tolling of limitations under Section 111.207 (Tolling of Limitation Period), or is the subject of a federal bankruptcy proceeding, the statute of limitations relating to the period during which the individual may be personally assessed by the comptroller is stayed until the first anniversary of the date the liability becomes final or the date the bankruptcy proceeding is closed or dismissed.

(c)

The district courts of Travis County have exclusive, original jurisdiction of a suit arising under this section.

(d)

In this section:

(1)

“Responsible individual” includes an officer, manager, director, or employee of a corporation, association, or limited liability company or a member of a partnership who, as an officer, manager, director, employee, or member, is under a duty to perform an act with respect to the collection, accounting, or payment of a tax or money subject to the provisions of Subsection (a).

(2)

“Tax” includes any tax or money subject to the provisions of Subsection (a), including the penalty and interest computed by reference to the amount of the tax or money.
Acts 1981, 67th Leg., p. 1504, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 1, Sec. 1, eff. July 21, 1987; Acts 1995, 74th Leg., ch. 87, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 931 (H.B. 3314), Sec. 2, eff. June 15, 2007.
Acts 2019, 86th Leg., R.S., Ch. 1119 (H.B. 2358), Sec. 1, eff. October 1, 2019.

Source: Section 111.016 — Payment to the State of Tax Collections, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­111.­htm#111.­016 (accessed May 26, 2025).

111.001
Comptroller to Collect Taxes 111.002
Comptroller’s Rules 111.003
Comptroller’s Investigations 111.004
Power to Examine Records and Persons 111.005
Governmental Entities to Cooperate 111.006
Confidentiality of Information 111.007
Criminal Penalties for Disclosing Federal Tax Information 111.008
Deficiency Determination 111.009
Redetermination 111.010
Suit to Recover Taxes 111.011
Tax Collections and Reports by Businesses 111.012
Security for the Payment of Taxes 111.013
Evidence: Tax Claims 111.014
Evidence: Copies of Graphic Matter 111.015
Remedies Cumulative 111.016
Payment to the State of Tax Collections 111.017
Seizure and Sale of Property 111.018
Notice of Sale of Seized Property 111.019
Sale of Seized Property 111.020
Tax Collection on Termination of Business 111.021
Notice to Holders of and Levy Upon Assets Belonging to Delinquent 111.0021
Application to Other Taxes and Fees 111.0022
Application to Other Laws Administered by Comptroller 111.022
Jeopardy Determination 111.023
Written Authorization 111.024
Liability in Fraudulent Transfers 111.025
Delinquent Taxpayer Financial Records 111.0034
Advanced Database System for Audits 111.0035
Advanced Database System for Tax Collections 111.0036
Out-of-state Audits 111.0041
Records 111.0042
Sampling in Auditing 111.0043
General Audit and Prehearing Powers 111.0044
Special Procedures for Third-party Orders and Subpoenas 111.0045
Use of Outside Personnel 111.0046
Permit or License 111.0047
Suspension and Revocation of Permit or License 111.0048
Reissued or New Permit or License After Revocation or Suspension 111.0049
Appeals 111.051
Reports and Payments 111.052
Form of Report 111.053
Filing Dates: Weekends and Holidays 111.054
Timely Filing: Mail Delivery 111.055
Timely Filing: Diligence 111.057
Extension for Filing Report 111.058
Filing Extension Because of Natural Disaster 111.059
Oath Not Required 111.060
Interest on Delinquent Tax 111.061
Penalty on Delinquent Tax or Tax Reports 111.062
Acceptance of Credit Cards for Payment of Certain Taxes and Fees 111.063
Penalty for Failure to Use Electronic Transfers and Filings 111.064
Interest on Refund or Credit 111.0075
Provision of Information Relating to Tax Audits 111.0081
When Payment Is Required 111.101
Settlement 111.0102
Suit Challenging Collection Action 111.102
Settlement on Redetermination 111.103
Settlement of Penalty and Interest Only 111.104
Refunds 111.105
Tax Refund: Hearing 111.106
Tax Refund: Notice of Intent to Bypass Hearing 111.107
When Refund or Credit Is Permitted 111.108
Recovery of Refund or Credit 111.109
Tax Refund for Wages Paid to Employee Receiving Aid to Families with Dependent Children 111.110
Tax Credit for Real Property Contributed to an Institution of Higher Education 111.201
Assessment Limitation 111.202
Suit Limitation 111.203
Agreements to Extend Period of Limitation 111.204
Beginning of Period of Limitation 111.205
Exception to Assessment Limitation 111.206
Exception to Limitation: Determination Resulting from Administrative Proceeding 111.207
Tolling of Limitation Period 111.251
Assignment on Payment by Third Person 111.252
Notice to Taxpayer 111.253
Venue for Enforcement of Assigned Claims 111.254
Reassignment 111.255
Recording of Assignment 111.351
Wireless Equipment for Auditors 111.352
Computer and Wireless Equipment for Enforcement Staff 111.353
Advanced Scanners for Field Offices 111.00452
Employment of Investigators 111.00455
Contested Cases Conducted by State Office of Administrative Hearings 111.00457
Information Relating to Other Permit or License Requirements 111.0511
Restricted or Conditional Payments to Comptroller Prohibited 111.0611
Personal Liability for Fraudulent Tax Evasion 111.0625
Electronic Transfer of Certain Payments 111.0626
Electronic Filing of Certain Reports 111.1042
Tax Refund: Informal Review 111.2051
Assessment When Refund Claimed
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Verified:
May 26, 2025

§ 111.016. Payment to the State of Tax Collections's source at texas​.gov