Texas Tax Code

Sec. § 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

Last accessed
Jun. 7, 2021

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