Relating to the requirement that certain tax reports be filed electronically.
Summary
SB 2873 amends the Texas Tax Code to lower the threshold at which the comptroller may require certain taxpayers to file tax reports electronically. Under current law, the comptroller may require electronic filing for taxpayers who paid $50,000 or more in the preceding fiscal year; the bill reduces that amount to $10,000. Taxpayers subject to the requirement may use comptroller-provided software or commercially available software that meets comptroller standards.
The bill is a reporting and administration measure rather than a change to tax rates or tax liability. It is intended to expand the use of electronic filing for tax reports, likely increasing the number of businesses and other taxpayers that must submit reports digitally. The bill applies prospectively beginning September 1, 2025, and preserves prior law for liabilities that accrued before that date.
Impact
SB 2873 changes Section 111.0626(b-1) of the Tax Code by authorizing the comptroller to require electronic filing from a broader group of taxpayers, reducing the qualifying payment threshold from $50,000 to $10,000. This affects taxpayers who meet the lower threshold, as well as tax preparers and software vendors that support filing compliance. The bill does not alter substantive tax obligations, but it expands administrative reporting requirements and may increase compliance obligations for smaller taxpayers.
Sentiment
The available legislative record suggests little overt controversy. The bill advanced through the Senate and House process and was placed on the General State Calendar, with no committee transcript indicating opposition or extended debate. The voting history shown is procedural and does not reflect recorded yea/nay opposition, which is consistent with a generally routine administrative bill.
Contention
The main point of potential contention is the lowered threshold for mandatory electronic filing, which could be viewed as increasing compliance burdens for taxpayers who previously would not have been required to file electronically. Businesses and tax practitioners representing smaller taxpayers may be concerned about implementation costs, software access, or administrative complexity. On the other hand, supporters would likely favor the change as a modernization and efficiency measure for the comptroller’s office and tax administration.
Amends, repeals, and adds to existing law to provide for reports to the Legislature to be submitted electronically and to remove obsolete provisions regarding reporting requirements.
Relating to the repeal of the requirement that certain entities subject to the franchise tax must file a public information report with the comptroller of public accounts.