SB 266 Texas Senate · 89th Legislature (2025)

Relating to certain tax and fee collection procedures and taxpayer suits.

SB 266 updates Texas tax collection procedures by requiring taxpayers to provide contemporaneous records (such as invoices, contracts, or electronic documents) to support claims about tax, penalty, or interest amounts in disputes. It creates a new process for taxpayers to bypass the standard review of "managed audits" (a type of audit) and go directly to court by filing a notice within 60 days of receiving audit results, detailing specific disputed facts and legal grounds. The bill also specifies that penalties for disputed amounts are waived during court proceedings, but if a final court judgment isn’t paid within 20 days, a 10% penalty applies to the unpaid amount.

Bill status signed all 5 stages cleared

Introduction

Nov 2024

Committee Review

Apr 2025

Senate Passage

May 2025

House Passage

May 2025

Signed into Law

May 2025

Introduced Nov 12, 2024 Signed May 24, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 5 edits · May 24, 2025

MODERATE

This bill updates Texas tax law to streamline how taxpayers can dispute results from managed audits. It adds new procedures allowing taxpayers to bypass the standard redetermination process by filing a notice of intent and going directly to court, while also clarifying documentation requirements for tax claims.

Scope change

The bill expands the dispute resolution process for managed audits by creating a new pathway for taxpayers to bypass redetermination hearings and file lawsuits directly, while also adding new sections to the Tax Code governing these procedures.

REQUIREMENT

Added new Section 111.0091 establishing a notice of intent process that allows taxpayers to bypass redetermination hearings and proceed directly to court for managed audit disputes.

Added documentation requirements for taxpayers in managed audit disputes, requiring production of records to substantiate claims about disputed underpayments or overpayments.

Repealed Section 111.105(e) which is no longer needed after the new managed audit dispute procedures were added.

ENFORCEMENT

Added Section 112.1511 creating new legal procedures for suing the comptroller to dispute managed audit results, including requirements to attach the notice of intent to court petitions.

TIMELINE

Modified filing deadlines for managed audit disputes, establishing specific timeframes (60, 90, and 120 days) for filing notices and lawsuits depending on whether conferences are required.

Floor votes · House May 10, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 24, 2025

Signed into law

Signed by the Governor

executive

May 13, 2025

Lower · Passed

Signed in the House

lower

May 13, 2025

Upper · Passed

Signed in the Senate

upper

May 12, 2025

Upper · Passed

House passage reported

upper

May 10, 2025

Lower · Passed

Passed

lower

Apr 30, 2025

Lower · Passed

Committee report sent to Calendars

lower

Apr 29, 2025

Lower · Passed

Committee report distributed

lower

Apr 24, 2025

Lower · Passed

Reported favorably w/o amendment(s)

lower

Apr 17, 2025

Committee

Referred to Ways & Means

lower

Apr 17, 2025

Introduced

Read first time

lower

Apr 14, 2025

Introduced

Received from the Senate

lower

Apr 10, 2025

Upper · Passed

Passed

upper

Mar 19, 2025

Upper · Passed

Committee report printed and distributed

upper

Mar 19, 2025

Upper · Passed

Reported favorably w/o amendments

upper

Mar 19, 2025

Upper · Passed

Vote taken in committee

upper

Mar 19, 2025

Upper · Passed

Testimony taken in committee

upper

Feb 3, 2025

Committee

Referred to Finance

upper

Feb 3, 2025

Introduced

Read first time

upper

2 primary · 0 co-sponsors